Freedom Mortgage and RoundPoint Mortgage Servicing are planning to merge, the companies announced Friday.
The deal will make RoundPoint – which services and subservices about $91 billion in mostly agency loans – a wholly owned subsidiary of Freedom, a full-service, nonbank mortgage lender and servicer.
It will also boost Freedom’s portfolio of mortgage servicing rights to more than $300 billion, making it the seventh largest servicer in the U.S., the companies said.
The acquisition will provide Freedom with an active subservicing platform and broaden its origination network by folding in RoundPoint’s retail and correspondent origination channels.
RoundPoint CEO Kevin Brungardt said the deal will benefit RoundPoint by providing access to Freedom’s origination platform.
“This merger will create a much larger and stronger organization with significant synergies,” said Brungardt. “RoundPoint will benefit operationally in many ways, including having access to Freedom Mortgage’s substantial origination platform.”
“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 companies said Friday that they have entered into a merger agreement and the deal is expected to close in the third or fourth quarter of 2019, subject to regulatory approval.
Financial terms of the deal were not disclosed.