Freedom to acquire J.G. Wentworth unit, expand mid-Atlantic foothold
Freedom Mortgage's planned purchase of J.G. Wentworth Home Lending would add 570 employees and 35 offices across 46 licensed states and increase the acquirer's servicing portfolio by $6 billion.
Chesterbrook, Pa.-based J.G. Wentworth, known for its catchy jingle, owns one of the country's largest direct and retail home mortgage lenders, offering conventional and jumbo purchase mortgages, and government-insured FHA, VA and USDA loans.
"J.G. Wentworth Home Lending's excellent track record of serving first-time and veteran homebuyers make them a perfect addition to Freedom Mortgage," Stanley Middleman, founder and CEO of Freedom Mortgage, said in a press release. "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."
The addition of the J.G. Wentworth division would help extend Freedom's reach in the mid-Atlantic region. Financial terms of the transaction were not disclosed.
"We are very pleased to enter this next chapter in our company's history," Phil Buscemi, president at J.G. Wentworth Home Lending, said in the press release. "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. We look forward to an exciting future together."
In 2017, when J.G. Wentworth restructured its company operations due to financial concerns, its mortgage unit was a point of strength.
Freedom acquired a number of companies in the past, including JPMorgan Chase's U.S. Department of Agriculture mortgage production operation in April 2016, the mortgage banking business of Sterling Bancorp in August 2016 and most recently, RoundPoint Mortgage Servicing in May of this year.
The deal follows an overall trend toward consolidation in the mortgage industry.