Prospect Mortgage Reaches Agreement with the New York Department of Financial Services

SHERMAN OAKS, Calif., Oct. 25, 2013 /PRNewswire/ -- Prospect Mortgage is pleased to have finally resolved several matters stemming from legacy operations raised by the New York Department of Financial Services ("DFS") during a May 2010 review that covered activities from the Company's acquisition, integration and operation of 4 mortgage platforms in 2007 and 2008.

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"We have worked cooperatively and proactively with the State to reach this agreement, which resolves legacy issues related to prior acquisitions," said Ron Bergum, Prospect's Chief Executive Officer. "Prospect is committed to excellence and integrity in every aspect of our business and we are constantly working to strengthen the quality of our processes and to raise the level of service we provide our customers."

Under the terms of the settlement agreement, which does not include any admission of wrongdoing by Prospect, Prospect will continue to enhance the substance and review of its training, compliance and vendor management programs within the State as well as remediate concerns regarding certain legacy activities, some of which the Company had already remediated prior to being made aware of by the State.

"Adapting to an ever-changing regulatory environment while remaining focused on improving customer service is critical to success within our industry," said Bergum. "While the current management and ownership was unaware of several of the pre-acquisition legacy issues that were raised by the DFS during these discussions, we have worked diligently with the State to address the State's concerns. This agreement is a positive step forward for our operations in the state of New York and our relationship with the DFS."

SOURCE Prospect Mortgage