Freedom Mortgage has finalized an agreement to acquire J.G. Wentworth Home Lending, the company announced Thursday, in a deal that will boost its servicing portfolio by $6 billion.
Freedom said the acquisition will expand its reach to the mid-Atlantic region, where J.G. Wentworth has a strong presence. As part of the deal, it will add more than 570 J.G. Wentworth employees working in 35 offices across the country.
The specific terms of the deal were not disclosed.
Pennsylvania-based J.G. Wentworth Home Lending is a retail lender that does more than $6 billion a year in mortgage originations.
The company is a subsidiary of J.G. Wentworth Company, which began as a purchaser of structured settlement payments, annuity payments, lottery payments and other receivables and rose to fame with the “It’s my money and I want it now” advertising campaign.
The company entered the mortgage arena in 2015 with the acquisition of WestStar Mortgage, a privately held residential mortgage company.
But just two years later, J.G. Wentworth filed for bankruptcy, saddled by unsustainable debt and competition from companies successfully raking in leads online. This marked the second time the company filed for bankruptcy protection in nine years.
J.G. Wentworth emerged from bankruptcy in January 2018, saying at the time that its home lending arm was experiencing record growth.
But apparently, now seemed like a good time to sell.
“J.G. Wentworth Home Lending’s excellent track record of serving first-time and veteran homebuyers make them a perfect addition to Freedom Mortgage,” said Freedom Mortgage Founder and CEO Stanley Middleman. “By combining strengths, we’ll be able to provide affordable home financing options to even greater numbers of borrowers, so they may achieve the American dream of homeownership. We look forward to working together.”
Phil Buscemi, president at J.G. Wentworth Home Lending, said the company is looking forward to this next chapter of its history.
“Freedom Mortgage shares our commitment to always put borrowers first and our dedication toward leveraging technology to make the financing process as fast and simple for consumers as possible,” Buscemi said. “We look forward to an exciting future together.”