Buying a home is a watershed event in the life of any family, and most likely the largest financial transaction made. Refinancing can be no less daunting in terms of financial outlay and legal exposure. It is no surprise, therefore, that banks and finance companies intensely compete for mortgage business. While interest rates might be tweaked marginally, these financial institutions focus most of their sales efforts in the areas of expertise and customer service. From application and origination to underwriting and closing, lenders seek to demonstrate their trustworthiness irrespective of changes in the housing markets or fluctuations in the price of bonds. Among the companies that sell their service is Prospect Mortgage.
About Prospect Mortgage
Among the biggest stand-alone mortgage retailers in the United States, Prospect Mortgage advertises a wide array of loan products, from conventional and jumbo mortgages to those guaranteed by government agencies like the Veterans Administration (VA) and the Federal Housing Administration (FHA). From its Sherman Oaks, California Headquarters—and multiple branch offices across the country—Prospect Mortgage disburses funds to qualified borrowers for purchase, refinance and home improvement/rehabilitation. In addition, Prospect finances purchases of properties foreclosed on by the Federal National Mortgage Association (FannieMae). Through its website and the personal assistance of its loan officers, this company aims to educate borrowers on the lending process so that they will understand their responsibilities to the lender and vice versa.
Outreach to Realtors and Builders
Prospect Mortgage puts a premium on the power of referral. Accordingly, the company takes pains to work as a team with real estate agents and home builders. Annoyances common to credit approval and closings include:
- Duplicative requests for documentation
- Postponed or adjourned closings
- Settlement documents received by attorney at the last minute
- Poor internal communication (between processors and underwriters, for example)
In developing partnerships with realtors, Prospect ensures a smoother loan process, knowing what the buyer is hearing from the agent who, in turn, understands the flow from application to closing. Going a step further, loan officers make themselves available for open houses, allowing three-way conversations among prospective buyers, brokers and the lender.
Along those same lines. Prospect Mortgage operates a formal program to liaise with builders and contractors. For example, condominium developers do well to understand investor requirements for eligible loans. Companies like Prospect depend on their loans being purchased in the secondary market so must consequently meet investor guidelines in order to close. Documentation like master insurance declarations is a typical requirement that the developer or association can get up front, thereby hastening the closing timetable. Prospect also updates its builder partners on its appraisal standards and procedures.
What People Are Saying
Like most finance companies, Prospect Mortgage has its fans and its critics. The U.S. Department of Housing and Urban Development registers the highest number of endorsements for Prospect’s 203k rehabilitation loan program. Consumer review sites reflect both great satisfaction and profound disappointment. From its publicly inaugurated campaigns to reduce delays, enhance communication and educate its partners, borrowers may expect fewer surprises as closings near. The good news is that Prospect is hearing the complaints. Presently, these efforts are still a work in progress.