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HomeBridge Financial Services Inc. has announced the signing of a definitive agreement under which HomeBridge will purchase the operating assets of Prospect Mortgage LLC from Prospect Holding Company LLC. The asset purchase consists primarily of the loan production platform. As a result, HomeBridge will become one of the largest non-bank mortgage lenders in the country, originating loans nationwide, with approximately 900 retail mortgage loan originators in nearly 250 branches. HomeBridge will continue to operate its two wholesale divisions, ultimately employing more than 3,000 full-time associates across the enterprise. The asset purchase is expected to close in January 2017.
HomeBridge should become the sixth largest non-bank mortgage lender for overall production. In addition, the U.S. Department of Housing & Urban Development (HUD) listed Prospect and HomeBridge first and second, respectively, in its year-end 203(k) endorsement summary report. HomeBridge will become the nation’s largest renovation lender, with more than double the production of the nearest competitor.
HomeBridge CEO Peter Norden, President Joel Katz and Chief Operating Officer Joe Sheridan will continue to lead the business.
“In today’s mortgage market, size, capital, liquidity and product diversity are critically important to long-term growth and success,” said Norden. “Specifically, our access to capital will improve, impacting our funding capabilities and our ability to increase our presence in existing and new markets. We will remain an entrepreneurial, flexible and nimble mortgage banker by effectively balancing profitability and volume, while continuing our commitment to operating in compliance with the current mortgage lending regulatory landscape.”
Michael Williams, Prospect’s Chairman and CEO and the former President and CEO of Fannie Mae, will remain with HomeBridge in an advisory role for the immediate future.
“This arrangement creates a true loan production powerhouse that should become the nation’s premier non-bank mortgage company,” said Williams. “I expect a smooth transition because of the similarities in corporate cultures at HomeBridge and Prospect, including strong leadership, a talented workforce and a profound commitment to excellence in everything we do.”
In addition, Doug Long, Prospect’s president of National Lending, will take an executive vice president role with HomeBridge and manage the existing Prospect branch operations that are moving to HomeBridge.