A mortgage banking firm run by the former chief executive officer of Fannie Mae has announced plans to make a mortgage acquisition.
Michael J. Williams was CEO at Fannie until he became chairman of Prospect Mortgage LLC in 2012. He was appointed CEO in 2014.
Sherman Oaks, California-based Prospect Mortgage is backed by Sterling Partners, a $5 billion private-equity firm and claims to be one of the nation’s “largest independent residential retail mortgage lenders.”
An announcement Friday said that Prospect Mortgage is acquiring assets of CapWest Mortgage from Farmers Bank & Trust.
CapWest is a call center operation based in Kansas City
that focuses on consumer-direct originations.
The acquisition will help Prospect Mortgage
achieve its objective to capitalize on the emerging consumer direct market.
“During the last several quarters, we conducted extensive market due diligence on an array of strategic opportunities that would complement Prospect’s business and drive growth and profitability,” Williams said in today’s statement. “We believe CapWest’s sophisticated call center operations and seasoned management team will provide Prospect with significant growth opportunities and an enhanced competitive advantage in the marketplace.”
Once the deal is done, CapWest will operate as a separate division.
CapWest President Monte Robbins will become a divisional president at Prospect Mortgage once the transaction consummates.
Farmers Bank & Trust Chairman and CEO W.R. Robbins noted in the news release that the bank recognized that CapWest’s growth potential was limited by the scale of “our family-owned bank.”
Terms of the deal or the closing date weren’t disclosed. But Robbins noted that a long-term relationship between the bank and Prospect Mortgage is being established with the sale.
