Freedom Mortgage Corporation has entered into an agreement to acquire RoundPoint Mortgage Servicing Corporation, the companies have announced. Following the merger, RoundPoint will become a wholly owned subsidiary of Freedom Mortgage.
RoundPoint currently services and subservices about $91 billion in unpaid mortgage assets, consisting primarily of agency loans. The company also originates loans through its loan officers and a correspondent lending program.
When the acquisition is complete, Freedom Mortgage’s combined owned and subserviced mortgage servicing rights portfolio is expected to be in excess of $300 billion, the company said. The merger will also provide Freedom Mortgage with an active subservicing platform and broaden the scope of the company’s co-issue origination network.
“This merger will create a much larger and stronger organization with significant synergies,” said Kevin Brungardt, CEO of RoundPoint. “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 US mortgage servicer nationwide.”
“I am pleased to welcome RoundPoint’s highly successful and professional team to the Freedom family,” said Stan Middleman, CEO of Freedom Mortgage. “We very much appreciate the hard work by everyone involved in making this merger happen, and look forward to working together.”
The acquisition is expected to close in the third or fourth quarter.