Mount Laurel-based Freedom Mortgage Corp. and Charlotte, North Carolina-based RoundPoint Mortgage Servicing Corp. announced Friday they have entered into a merger under which RoundPoint will become a wholly-owned subsidiary of Freedom.
RoundPoint, founded in 2007, serves approximately $91 billion in unpaid mortgage assets comprised primarily of agency loans.
The deal is expected to close in the third or fourth quarter of 2019.
“This merger will create a much larger and stronger organization with significant synergies,” RoundPoint CEO Kevin Brungardt said. “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.”
Once the merger is complete, Freedom’s portfolio of combined owned and subserviced mortgage servicing rights is expected to be more than $300 billion.
“I am pleased to welcome RoundPoint’s highly successful and professional team to the Freedom family,” Freedom Mortgage CEO Stan Middleman said. “We very much appreciate the hard work by everyone involved in making this merger happen, and look forward to working together.”
Financial terms were not disclosed.
Goldman Sachs & Co. LLC served as financial advisor and Sidley Austin LLP served as legal counsel to RoundPoint. Classic Strategies Group served as financial advisor and Zuckerman Gore Brandeis & Crossman LLP served as legal counsel to Freedom Mortgage.