Sprout Mortgage Shuts Down
Summary
Sprout Mortgage, which often billed itself as one of the nations fastest-growing lenders and largest non-QM originators, shut its doors today, according to former employees. The former employees, who asked not to be identified, said Sprout President Shea Pallante held a companywide phone call this afternoon to break the news to all staff. The former employee said Sprout did a reduction in force of 50 people in April, and another 60 last month, and that there were two investors interested in the company, one who was willing to put up a $25 million investment, another looking to make a preferred stock offering. Sources also said Sprout’s entire correspondent team was let go two weeks ago and moved over to Oaktree Funding Corp. Founded in 2016 and based in East Meadow, N.Y., Sprout offered over 30 unique mortgage solutions, along with automation tools, and underwriting services.