Prospect Acquisition Corp. is a newly organized blank check company formed for the purpose of acquiring control of, through a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination, one or more businesses or assets, which we refer to as our initial business combination, in the financial services industry.

     Financial services refers to services provided by the finance industry. The financial services industry includes entities of various types that deal with the management of money and provide a broad array of financial services to their customers, including among others, private equity firms, hedge fund advisers, investment management firms, money management firms, funds of funds firms, brokerage firms, investment banks, commercial banks, registered investment advisers, investment management consulting companies, insurance companies, specialty finance companies, business development companies, commercial credit companies, mortgage brokers and mortgage lending companies, consumer finance companies, financial service subsidiaries of consumer retail companies, non-bank lending companies, reinsurance companies, venture capital companies, small business investment companies and businesses which provide support services for financial service companies. We may consummate our initial business combination with any of these types of entities.

     On November 20, 2007 we completed an initial public offering of 25,000,000 units at an offering price of $10.00 per unit, generating gross proceeds of $250,000,000 to the Company.  Each unit consists of one share of common stock and one warrant.  On December 3, 2007 holders of units were entitled to trade the common stock and warrant separately.  We also sold to Flat Ridge Investments LLC, LLM Structured Equity Fund L.P., LLM Investors L.P. and Capital Management Systems, Inc. an aggregate of 5,250,000 warrants at a price of $1.00 per warrant, generating proceeds of $5,250,000, resulting in a total of $255,250,000 together with the proceeds from our initial public offering.  Of the proceeds received from the consummation of the initial public offering and private sale of warrants, $247,000,000 (or approximately $9.88 per share sold in the initial public offering) was placed in trust.