Prosperity strikes deal to acquire JFQ Lending
After the acquisition, Prosperity’s consumer direct division will operate out of its call center in Scottsdale, Arizona. The financial terms of the transaction were not disclosed.
Full-service mortgage company Prosperity, a subsidiary of HomeServices of America, originated about $8.5 billion in the last 12 months, according to the mortgage data platform Modex. However, amid a challenging mortgage market, monthly production fell from over $1.1 billion in June 2022 to $460 million in December 2022.
Consequently, the lender imposed one round of layoffs last year, slashing about 4% of its team members to just over 1,400 employees as of the end of 2022, Messer said in a recent interview with HousingWire. The company has 548 active loan officers and 379 branches, per the Modex data.
According to Messer, Prosperity started as a joint venture with Wells Fargo Ventures and Long & Foster Companies, and the company’s “entire DNA is strictly built out of purchase loans.” He said about 70% of Prosperity’s production comes from affiliate realtors.
With the JFQ acquisition, the company will explore the call center approach to sell its products to borrowers. According to its website, it includes a portfolio with fixed and adjustable rate mortgages (ARMs) and government loans, such as FHA, USDA and VA loans.
JFQ’s CEO John Kresevic, who founded the company in 2017 along with current COO Justin Meek, will lead Prosperity’s new consumer direct division as senior vice president and national sales leader for consumer direct.
The company originated $816 million over the last 12 months, according to Modex. The data shows that 56% are conventional loans and 82% are refinance loans.