Sprout Mortgage offers unusual solutions for mortgage professionals, real estate investors, and homeowners. Thus, you can’t find such services elsewhere.
Further, Sprout Mortgage LLC is one of the United States’ fastest-growing independent lenders and biggest non-QM originators. The company continuously expands its loan programs, including aggressive pricing, sensible underwriting, and flexible qualifications.
Also, they have the range of programs required to fund all creditworthy loan applicants willing and able to make their mortgage loan payments on time.
Furthermore, Sprout Mortgage company offers QM, non-QM, and government solutions such as Asset Depletion, Bank Statements, Debt Service Coverage, Mixed-Use, Foreign Investor, I/O 40 Advantage, FHA, VA, and Condotels, and more. Their solutions also include Prime Jumbo up to $10M.
So, this article will cover reviews about Sprout Mortgage LLC and why the company is shutting down. It will also cover details about the company’s services, interest rates, website, plans, and more.
Table of contents
What is Sprout Mortgage?
Sprout Mortgage is a financial service company purposefully created for residential RE investors and self-employed recent credit event borrowers. This company works hand in hand with specific loan fund organizations to help borrowers.
As an exceptional company among others in the financial sector, Sprout Mortgage company is structured like an LLC. And it provides loan programs, thereby seeking to assist those willing to purchase properties like houses. Note that these programs are affordable, and each of them serves an essential demographic.
Sprout Mortgage also offers top-notch solutions for foreign investors, gig workers, real estate investors, self-employed people, conventional customers, those with a modest income and substantial assets, etc.
In addition, their cutting-edge technology makes it simple for their professional clients to expand their businesses. Meanwhile, brokers can quickly find the optimal loan, terms, and pricing solution for any scenario with the aid of iQualifi.
On the other hand, iAnalyze simplifies the time-consuming process of bank statement analysis by providing an automated computation of qualifying income, making it possible to submit a loan application.
All these and more are a part of Sprout Mortgage company’s leading BROKER AdvantEDGE program, which was created to assist mortgage professionals in swiftly and effectively expanding their businesses.
Read Also: Bell Bank Mortgage Review 2023: Interest Rates, & Plans
How Does Sprout Mortgage Work?
In addition to its affordability and quest to serve an important demographic, Sprout Mortgage LLC aids borrowers to reach further by providing extra flexibility toward succeeding. Several organizations are supporting Sprout Mortgage company, including the State of Vermont’s Working Lands Enterprise Initiative.
Therefore, they provide start-up support for Sprout Mortgage towards discharging its duties. This is because it meets the financing needs of working land entrepreneurs who are not eligible to apply for certain types of loans. Thus, this is expected of every LLC operating like Sprout Mortgage.
Meanwhile, there are certain Mortgage companies out there, especially the likes of Sprout, which don’t seem perfect. However, it has been speculated that every company has flaws; this even extends to shutting down some companies under mysterious circumstances. Take, for instance, when Sprout laid off over 600 workers in June 2023.
Remember that these labor forces served a sizeable portion of the company’s workforce. And this took place when a finance agreement collapsed. The company was stuck with tens of millions of dollars worth of loans it couldn’t sell to investors on the secondary market at par due to a sudden increase in mortgage rates.
Sprout Mortgage Reviews 2023: Interests, Rates & Plans
Keep in mind that not all borrowers will have a chance to qualify for Sprout Mortgage financing. This is because specific loan fund organizations that it works with offer various business suit financing to serve borrowers in certain situations and circumstances.
As a result, several business programs encourage borrowers to communicate with them directly to determine the program that will suit their needs.
Meanwhile, let’s show you some former employee reviews about Sprout Mortgage LLC from indeed.com:
“Team and co-workers made the work environment enjoyable. Lots of changes in management and team structure caused confusion and tedious, repeated tasks. Aged processes that allowed for risk exposure.
The longevity of Sprout was questionable as many loans processed needed exception approval. Benefits were high, but moderate for the US.” – Underwriter (New York, NY).
“I was hired with a team of other new Account Executives. We were all misled & told the company was doing great, but it was a BIG CON/SCAM. The company was already failing when we were hired.
Just 3 months later, the ENTIRE company was abruptly laid off over a company-wide conference call the day before payday. We were ALL owed 3 weeks of pay as well.” – Account Executive (Irvine, CA).
“My current position within this company has been a great place to learn about the mortgage industry, but there really isn’t room for growth within my department. So, once you get the hang of it, if you want to do the same thing repeatedly, this is the place for you.
Keep in mind that this industry is very volatile; rates are constantly changing, so you could be working today and not have a job tomorrow. That’s always in the back of my head, so I like to be prepared. Also, it can be a stressful job, especially when it’s the month’s end.” – Closing Disclosure Specialist (Orange, CA)
“When I joined Sprout, I knew I was joining a growing company… I did not realize how quickly it would be! Reflecting upon the leadership here, amazing things are on the horizon.
I am energized to work with a solid group of colleagues that are dedicated, hard-working, and willing to collaborate. I look forward to seeing where 2023 takes us.” – Vice President (Remote)
Like every other organization, Sprout Mortgage has its ups and downs, as seen from the reviews above.
Sprout Mortgage is Shutting Down
Reports about Sprout Mortgage LLC shutting down have been aired since 2023. However, according to information from National Mortgage Professional, we’ll be discussing how it all happened.
According to former employees, Sprout Mortgage company, often seen as the United States’ largest non-QM originators and fastest-growing lenders, shut its doors on July 6, 2023.
The former employees stated that Sprout’s President, Shea Pallante, held a company-wide conference call that afternoon to share the news with all staff members. One of the employees said the call was supposed to be held by 4 p.m. EDT. However, it was taken back by half an hour and had at 4:30 p.m.
President Pallante told the staff (over 300 people) that Sprout Mortgage LLC was shutting down immediately. This includes its retail and wholesale divisions. However, an official from the company refused to confirm or deny the shutdown.
Again, employees said the call was held a day before payday, adding that President Pallante didn’t provide any compensation or severance pay. The President also did not say anything concerning the outcome of loans in the organization’s pipeline.
While the staff members said they were caught off-guard by the news, some said they were shell-shocked. Another former staff member stated that over a hundred were curious to know if they were getting a paycheck the following day.
Furthermore, the employee stated that the organization would have sent out several emails in advance to inform employees but did not do it. However, Sprout Mortgage company was more interested in shutting down all staff email systems within 15 minutes of telling them about the company’s closure.
Sources also reported to National Mortgage Professional that Sprout was selling its mortgages to JPMorgan Chase. But since the big financial player cut down its mortgage staff because of the downturn in the housing market, it didn’t go well for Sprout.
Before the shutdown, two investors showed interest in the organization. One was eager to invest $25 million, and the other preferred a stock offering. However, these potential deals dashed into thin air when Sprout Mortgage was shut down.
Sprout Mortgage was established in 2016 in East Meadow, NY. It offered over thirty unique mortgage solutions alongside underwriting services and automation tools.
Website
For more information on Sprout Mortgage, kindly visit www.sproutmortgage.com.
Servicing
Sprout Mortgage has several services. Check them out below.
- Real estate/land acquisition
- Inventory
- Facility construction or improvement
- Equipment
- Working capital
See Also: Royal United Mortgage Review 2023: Interest Rates & Plans
Login
To Access Sprout’s wholesale for login, kindly click this website; https://buddy.sproutmortgage.com/loginredirect.html.
Interest Rates
Sprout can provide loans of up to $60,000 with reasonable interest rates. Meanwhile, the terms are between two and six years. Additionally, Sprout loans will typically have a 1% interest rate for the first two years of the loan, followed by a set 2% interest rate after that.
Plans
Here are the mortgage plans you can get at Sprout:
- Jumbo Prime
- The income per Bank Statements
- Asset Depletion
- Investor DSC
- Mixed Use
Is Sprout Mortgage Worth it?
Over seventy-five Sprout Mortgage staff members have provided anonymous ratings, giving the company an average rating of 3.1 on a 5-point scale. However, 39% of staff members have a good attitude toward the company and would recommend working there to a friend.
Other Non-QM Lenders Like Sprout Mortgage
Here are other lenders similar to Sprout Mortgage. These lenders specialize in issuing non-QM loans.
#1. Angel Oak Home Loans
While offering conventional loans, nationwide lender Angel Oak Home Loans focuses on non-QM lending. Through its four primary non-QM options, Angel Oak provides affordable rates and legitimacy as a lender for those who cannot obtain a traditional loan.
The bank statement loan from Angel Oak is self-explanatory. It enables borrowers to use their assets instead of employment verification to qualify for the loan. This loan is designed for self-employed buyers because conventional financing often requires proof of income.
Further, Angel Oak offers a program for individuals who want to buy income-producing property using the anticipated cash flow the asset will generate. Angel Oak also provides an option for people who have recently experienced bankruptcy or foreclosure to prevent the usual waiting time and return you to homeownership as quickly as possible.
#2. New American Funding
Another lender that’s similar to Sprout Mortgage is New American Funding. New American Funding provides non-QM loans for self-employed borrowers, those looking for jumbo loans, or those with unusual credit problems. This lender also advertises non-QM loans for highly qualified borrowers (also referred to as prime borrowers) who might desire to benefit from special financings, such as an interest-only loan.
New American Funding may be an excellent option if you’re looking to refinance a jumbo loan because its maximum loan amount is $2.5 million, and its maximum cash-out amount is $500,000. With physical offices in 33 states and programs assisting Latinx, Black, and military borrowing efforts, New American Funding may be worth considering for any non-QM loan.
Check Out: VIP Mortgage Review 2023: Interest Rates And Plans
#3. Rocket Mortgage
You’re probably most familiar with Rocket Mortgage among all the lenders listed. Rocket Mortgage, the largest online home lender in the US, provides various loan options, a simple application procedure, and an extensive educational section. Most borrowers will learn the outcome of their applications immediately after completing and submitting them.
Moreover, Rocket takes pride in having the industry’s most straightforward online application process. Borrowers can submit their applications entirely through the company’s website. Again, Rocket Mortgage does provide non-QM options. Still, because its minimum qualification standards are higher than its competitors, not all borrowers may be eligible for its offerings.
#4. North American Savings Bank
North American Savings Bank (NASB), with headquarters in Kansas City but lending operations throughout most of the United States, has closed on 100,000 mortgages since 2010, totaling $30 billion in loans.
With its extensive lending history, NASB is a reliable financial partner for most clients. But it asserts that none of its non-QM options are cookie-cutter loans.
Furthermore, NASB advertises 11 different non-QM loan types, some of which are advantageous for self-employed borrowers, those with a history of financial missteps, investors, loans with lower down payments, and bridging loans.
So, give NASB a call if your borrowing situation is complicated. It has physical locations around the Kansas City area. You could consider another lender if you are not in the Midwest and want to meet with someone in person.
Read More: Best Students Loan Refinance Lenders 2023
#5. CrossCountry Mortgage
Finally, we have CrossCountry Mortgage as a similar non-QM lender to Sprout Mortgage. CrossCountry Mortgage, a leading home lender in the US with offices in Cleveland and approval to lend in all 50 states, gives borrowers peace of mind knowing they are working with a respectable company.
Additionally, CrossCountry provides loans based on bank statements, loans utilizing assets to qualify, and loans for investors that can benefit those who fall into the non-QM category.
Because many foreign national borrowers lack a credit score, CrossCountry also provides loans to them, making them a unique non-QM loan type. It strives to make the loan application process as simple as possible by offering convenient online options and locations across the nation. You can quickly obtain quotes by visiting the company’s website.
Frequently Asked Questions
Based on the statistics from 2021, Sprout Mortgage’s annual revenue was $85 million.
There are over 375 people employed at Sprout Mortgage LLC.
The financial company is based in East Meadow, New York.
There is absolutely nothing. Sprout closed its doors and retroactively cut people’s health insurance for months.
According to greatplacenetwork.com, compared to 57% of workers at a typical US-based company, 96% of Sprout social employees describe the company as a beautiful place to work.
It shut down due to a failed funding agreement. The company was stuck with tens of millions of dollars worth of loans it couldn’t sell to investors on the secondary market at par due to a sudden increase in mortgage rates.
New American Funding: Best for overall mortgage experience.
NerdWallet’s Best Mortgage Lenders of January 2023
NBKC: Best for first-time home buyers.
Rocket Mortgage, LLC: Best for refi loan options.
PNC: Best for USDA loans.
Pennymac: Best for overall FHA loan experience.
Better: Best for online experience.
According to a review from a credible source. It was described as very slow, and people took advantage of the overtime.
A qualified mortgage belongs to a class of loans with specific, less risky characteristics that increase the likelihood that you’ll be able to repay the loan. Before applying for a mortgage, the lender must make a good-faith effort to evaluate your ability to repay the loan.
According to a review from a credible source. It was described as very slow, and people took advantage of the overti
A qualified mortgage belongs to a class of loans with specific, less risky characteristics that increase the likelihood that you’ll be able to repay the loan. Before applying for a mortgage, the lender must make a good-faith effort to evaluate your ability to repay the loan.
Conclusion
The mortgage financing industry is quickly becoming increasingly competitive. And trusting the wrong mortgage company might have a severe negative financial impact. Therefore, it is crucial to pick a mortgage lender with a wealth of knowledge and a proven track record of offering their customers high-quality services.
Sprout Mortgage company, during its existence, made a name for itself as one of the US’ largest non-QM originators and fastest-growing lenders. However, the founder, Michael Strauss, closed its doors due to an unsuccessful funding agreement.
References
- investinvermont.org
- lusha.com
- rocketreach. co
- growjo.com
- indeed.com
- linkedin.com
- crunchbase.com
- nationalmortgageprofessional.com
- benzinga.com
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