Freedom Mortgage has signed an agreement to acquire RoundPoint Mortgage Servicing for an undisclosed amount.
Image: Freedom Mortgage to acquire RoundPoint Mortgage Servicing. Photo: Courtesy of Gerd Altmann/Pixabay
After completion of the merger, the combined owned and subserviced mortgage servicing rights (MSR) portfolio of Freedom Mortgage is expected to exceed $300bn (£236bn).
Subject to regulatory approvals, the merger is expected to be closed in the third or fourth quarter of 2019 and will also provide Freedom Mortgage with an active subservicing platform and broaden its scope of co-issue origination network.
Freedom Mortgage CEO Stan Middleman said: “I am pleased to welcome RoundPoint’s highly successful and professional team to the Freedom family. We very much appreciate the hard work by everyone involved in making this merger happen, and look forward to working together.”
Established in 2007, RoundPoint services and subservices about $91bn (£72bn) in unpaid mortgage assets primarily consisting of agency loans. RoundPoint also originates loans through its loan officers and correspondent programme.
RoundPoint CEO Kevin Brungardt said: “This merger will create a much larger and stronger organization with significant synergies. RoundPoint will benefit operationally in many ways, including having access to Freedom Mortgage’s substantial origination platform.
“With the combination of servicing portfolios, the merger makes the company the seventh largest U.S. mortgage servicer nationwide.”
In 2017, Freedom Mortgage agreed to acquire $500m (£394m) worth residential mortgage assets from the mortgage banking operation of New York Community Bank. The deal includes the right to service more than $20bn (£15.75bn) of residential mortgage loans along with the loans in the warehouse at closing.
The servicing portfolio includes mortgage loans approved by Fannie Mae and Freddie Mac and relatively small amount of Ginnie Mae insured mortgages.
Freedom Mortgage has grown through strategic acquisitions and claims to have become one of the largest wholesale and retail lenders. Established in 1990, Freedom Mortgage, licensed in all the 50 states in the US, has been serving its clients borrowers and partners for more than 26 years.