Freedom Mortgage to acquire bank’s residential mortgage assets

Select employees will also be transferred to as part of the deal

Freedom Mortgage to acquire bank’s residential mortgage assets
Freedom Mortgage has agreed to purchase approximately $500 million of selected residential mortgage assets from New York Community Bank’s (NYCB) mortgage banking operation.

The deal includes the right to service more than $20 billion of residential mortgage loans and loans in the warehouse at closing, Fannie Mae- and Freddie Mac-approved mortgage loans and a small amount of Ginnie Mae-insured mortgages.

Freedom will also hire select employees from the bank’s originations, servicing and operations department from its Cleveland-based residential mortgage operation.

"I am delighted to have the opportunity to add the quality assets, platform and select employees which are part of New York Community Bank to our Freedom family," said Freedom Mortgage CEO Stanley C. Middleman. "I think there will be a great future for both firms as a result of this transaction."

An NYCB spokesperson told HousingWire that the bank will continue its mortgage banking operations through a third-party.

“The decision to sell the mortgage banking business comes after many months of careful evaluation with our Board of Directors and our outside advisors,” NYCB President and CEO Joseph Ficalora said in a statement. “Selling to a large, national, full-service mortgage banking company that would keep certain employees and maintain operations in the region were important considerations during the evaluation process.”


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