September 26, 2017 12:54 PM ET

Thrifts and Mortgage Finance

Company Overview of Prospect Mortgage, LLC

Company Overview

Prospect Mortgage, LLC provides retail mortgage lender services for residential properties in the United States. It offers a range of home loans solutions, including first-time homebuyer programs with down-payment assistance, FHA and VA, conventional, jumbo, new construction, renovation, refinance, and more. The company was founded in 1998 and is based in Sherman Oaks, California. As of February 2, 2017, Prospect Mortgage, LLC operates as a subsidiary of HomeBridge Financial Services, Inc.

15301 Ventura Boulevard

Suite D300

Sherman Oaks, CA 91403

United States

Founded in 1998

Phone:

855-381-2275

Fax:

818-981-6010

Key Executives for Prospect Mortgage, LLC

Chairman and Chief Executive Officer
Age: 59
Chief Operating Officer
General Counsel and Executive Vice President
Managing Partner
President of Retail and Correspondent Lending
Compensation as of Fiscal Year 2017.

Prospect Mortgage, LLC Key Developments

The Consumer Financial Protection Bureau Orders Prospect Mortgage to Pay $ 3.5 Million Fine for Illegal Kickback Scheme and Announces Action against RGC Services, Willamette Legacy, LLC and Planet Home Lending

The Consumer Financial Protection Bureau (CFPB) took action against Prospect Mortgage, LLC for paying illegal kickbacks for mortgage business referrals. The CFPB also took action against two real estate brokers RGC Services, Inc., (doing business as ReMax Gold Coast), based in Ventura, Calif., and Willamette Legacy, LLC, (doing business as Keller Williams Mid-Willamette), based in Corvallis, Ore. and a mortgage servicer Planet Home Lending, LLC that took illegal kickbacks from Prospect. Under the terms of the action announced, Prospect will pay a $3.5 million civil penalty for its illegal conduct, and the real estate brokers and servicer will pay a combined $495,000 in consumer relief, repayment of ill-gotten gains, and penalties.

The Department of Business Oversight Announces $10.1 Million Settlement with Prospect Mortgage, LLC

The Department of Business Oversight (DBO) announced Prospect Mortgage, LLC will pay $10.1 million in borrower restitution and penalties under a national settlement that resolves allegations the firm violated numerous federal and state laws. Under the settlement, Prospect will pay 70,353 borrowers across the country an estimated $2.8 million of combined restitution. The company will pay the states $7.4 million in administrative penalties over the course of 2016. Of the restitution, an estimated $1.22 million will go to 30,453 California borrowers. The state will receive $3.1 million of the administrative penalties. DBO led a group of eight states that performed the regulatory examination of Prospect's records that uncovered the violations. DBO also served as the states' lead negotiator in the settlement talks. The restitution compensates eligible borrowers for a $202.50 settlement service fee collected by Prospect from Sept. 30, 2009 through Jan. 21, 2014. Prospect told borrowers the fee covered settlement services provided by C2C Appraisal Services, LLC. But Prospect failed to disclose, as required, that C2C was an affiliate of Prospect's. The examination of loan files also revealed that some of the settlement services actually were performed by Prospect employees. Additionally, the $202.50 fee exceeded the actual cost of the services by an average of $37.50. Under the settlement, restitution for each borrower charged the excessive fee will average $40, plus 10% annual interest from the date the fee was collected. Other violations covered by the settlement include: missing or deficient disclosures; premature credit card charges for appraisal services; inadequate employee screening procedures; record retention deficiencies; and others. To prevent future such violations, the settlement requires Prospect to revise its policies and procedures, and train management, mortgage loan originators and support staff.

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Recent Private Companies Transactions

Type
Date
Target
Merger/Acquisition
November 1, 2016
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