One year later, Freedom Mortgage and RoundPoint complete merger
After announcing the acquisition of RoundPoint Mortgage Servicing on May 24, 2019, the merger with Freedom Mortgage has finally closed.
Through the deal, Freedom's mortgage servicing rights portfolio grows about 25% to an estimated $310 billion in unpaid principal balance by adding around $75 billion in servicing and subservicing UPB from RoundPoint.
Both companies are privately held. Terms of the transaction were not disclosed and neither company responded to a request for details on the merger's delay. Originally, Freedom expected to finalize the deal by the fourth quarter of 2019.
The deal falls in line with Freedom CEO Stan Middleman's plan to add 3,000 jobs in 2020 as the mortgage industry thrives in a low interest rate environment.
"RoundPoint brings over 378,000 new customers to the Freedom ecosystem, and we look forward to the opportunity to make them customers for life," Middleman said in a press release. "We are excited about the new opportunities that lie ahead."
Established in 2007, RoundPoint works in all 50 states and also offers residential lending, co-issue purchasing and correspondent loan purchasing. It's now officially a wholly owned subsidiary of Freedom. The Fort Mill, S.C.-based servicer finished at No. 37 on the 2020 list of Best Mortgage Companies to Work For and No. 36 in 2019.
The move bolsters Freedom's growing list of acquisitions. The Mount Laurel N.J.-based company bought BluFi Lending and Continental Home Loans in 2014, Sterling Bancorp's mortgage banking business and JPMorgan Chase's U.S. Department of Agriculture mortgage production operation in 2016, and J.G. Wentworth Home Lending in 2019.
Classic Strategies Group served as financial advisor and Zuckerman Gore Brandeis & Crossman served as legal counsel to Freedom. Goldman Sachs served as financial advisor and Sidley Austin served as legal counsel to RoundPoint.