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HomeBridge Financial Services to Acquire Lending Platform of Prospect Mortgage

National independent Mortgage lender HomeBridge Financial Services, Inc., announced today that it has signed into an agreement to purchase the operating assets of Prospect Mortgage LLC. The asset purchase consists primarily of Prospect’s loan production platform.

As a result of the asset purchase, which is expected to close in January 2017, HomeBridge will become one of the largest non-bank mortgage lenders in the U.S., originating loans nationwide with approximately 900 retail mortgage loan originators in nearly 250 branches.

The Iselin, N.J.-based HomeBridge will continue to operate its two wholesale divisions, ultimately employing more than 3,000 full-time associates across the enterprise.

“In today’s mortgage market, size, capital, liquidity and product diversity are critically important to long-term growth and success,” said HomeBridge CEO Peter Norden in a press release issued Tuesday. “Specifically, our access to capital will improve, impacting our funding capabilities and our ability to increase our presence in existing and new markets.”

The company currently holds approvals from Fannie Mae, Freddie Mac, Ginnie Mae, Veterans Affairs and the Federal Housing Administration, and funded nearly $9 billion in home loans in 2015. Reverse mortgages are part of the company’s array of lending products.

Year-to-date, HomeBridge totaled 44 Home Equity Conversion Mortgages through September 2016, representing an increase of 26% from its year-ago level, according to recent industry data tracked by Reverse Market Insight.

Prospect Mortgage is one of the nation’s largest independent residential retail mortgage lenders, having funding almost $9 billion in home loans in 2015, according to a press release on the transaction. The company offers a range of home loans, including FHA and VA, conventional, jumbo and super jumbo, renovation loans and more.

As part of the transaction, Prospect Mortgage Chairman and CEO Michael Williams—formerly the 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,” Williams said. “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.”

Additionally, Prospect’s President of National Lending Doug Long will take an executive vice president role with HomeBridge and will manage existing Prospect branch operations that are being moved to HomeBridge.

Houlihan Lokey served as exclusive financial advisor to Prospect, assisting in structuring and negotiating the transaction.

The purchase price of the acquisition was not disclosed by either company.

Written by Jason Oliva



This post first appeared on Reverse Mortgage Daily - News And Information On R, please read the originial post: here

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HomeBridge Financial Services to Acquire Lending Platform of Prospect Mortgage

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