A recent lawsuit filed by Banc of California is claiming that mortgage lenders and servicers Sprout Mortgage (now defunct) and Planet Home Lending owe $1.5 million related to the proceeds of two notes it owned and funded. 

In addition, the bank alleges that Sprout’s transactions with its warehouse lines have resulted in a deficiency of $2 million since the start of July 2022. Despite the bank’s requests, Sprout has not paid.

The non-QM lender abruptly shut down its operations on July 6. 

Mortgage industry veteran Michael Strauss, Sprout’s founder, is also listed as a defendant. According to the details ⇒

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