Private Equity-Backed Prospect Mortgage Buys IndyMac Retail Network

Following IndyMac’s announcement that they’re exiting retail and wholesale lending, Illinois-based Prospect Mortgage announced the purchase of IndyMac’s retail lending network for an undisclosed amount. Prospect owns Metrocities Mortgage, a nationwide mortgage bank who claims 5.6 billion in fundings for 2006 (irrelevant number in current market context); Opteum Mortgage, a mortgage broker headquartered in New Jersey; and Fidelity & Trust mortgage, a broker headquartered in Florida.

Prospect is backed by private equity firm Sterling Partners, and the private equity role seems to be more operational infrastructure investments rather than loan funding.