Summary of PROSPECT ACQUISITION CORP

Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

As previously reported, on February 10, 2009, Prospect Acquisition Corp. (the "Company") received a deficiency letter from NYSE Amex LLC (the "Exchange") indicating that the staff of the Exchange's Corporate Compliance Department (the "Staff") has determined that the Company is not in compliance with Section 704 of the Exchange's Company Guide, one of the Exchange's continuing listing standards, because the Company failed to hold an annual meeting of its stockholders during 2008. The Company was given the opportunity to submit a plan to the Exchange by March 10, 2009, advising the Exchange of actions to be taken, to bring the Company into compliance with Section 704 of the Company Guide (the "Plan") by August 11, 2009. The Exchange notified the Company in a letter, dated May 4, 2009, that it accepted the Plan previously submitted by the Company and granted the Company an extension until August 11, 2009 to regain compliance with the continuing listing standards of the Exchange.

The Company will be required to provide the Staff with updates in conjunction with the initiatives of the Plan as appropriate or upon the Exchange's request and the Staff will review the Company periodically for compliance with the Plan during the extension period. Failure to make progress consistent with the Plan or to regain compliance with the continued listing standards by the end of the extension period could result in the Company being delisted from the Exchange.

On May 18, 2009, the Company issued a press release announcing the receipt of the Exchange's letter as required by Section 1009 of the Company Guide. A copy of the press release is included as Exhibit 99.1 to this current report on Form 8-K and is incorporated by reference herein.