IRVING, TX—Prospect Mortgage LLC announces a new builder division in Texas which will focus on mortgage products for new home construction. The new Texas builder division will be located in the Irving, Texas location.

California-based Prospect Mortgage is independent direct residential retail lender backed by Sterling Partners, a private equity firm with approximately $5 billion of assets under management.

Prospect is committed to Texas and to serving the builder community in the state," says Mike Kelly, senior vice president, new construction and renovation division at Prospect. "Whether it is a residential subdivision or condominium project, Prospect has the product lineup, experienced leadership, operational support and dedicated and trained Loan Officers to help builders do what they do best - sell more homes."

And sell they will. Texas housing markets continue to lead the nation in new home starts and the 2014 outlook is good for new home construction in the state.

"Firming home prices are hastening the return of normal economic and housing activity in an increasing number of markets," says National Association of Home Builder chief economist David Crowe. "The healthiest markets continue to be centered in smaller metros that boast  strong local economies, particularly in the oil and gas producing states of Texas, North Dakota, Louisiana and Wyoming."

According to the NAHB's Leading Markets Index (LMI) Austin and Houston, are at the top of the list of metros with improving LMI scores. Houston ranked 33rd, and Austin 26th of the 350 metros surveyed. Texas accounts for four of the top 10 metros with the greatest improvement in housing activity, including the number one spot, Odessa.

The LMI identifies metros that are approaching and exceeding previous normal levels of housing activity. NAHB calculates the scores using employment data from the Bureau of Labor Statistics, house price appreciation data from Freddie Mac and single-family housing permits from the U.S. Census Bureau.