RoundPoint Mortgage Servicing Sold for the Second Time

Who just purchased RoundPoint Mortgage Services?

Matrix Financial Services Corp. just purchased the company from Freedom Mortgage Corp.

RoundPoint Mortgage Services was acquired just two years ago by Freedom Mortgage Corp. Freedom Mortage Corp. has now just sold RoundPoint to Matrix Financial Services Corp.

Freedom Mortgage Corp. purchased RoundPoint two years for $75 billion in mortgages. The price was based on the unpaid principal balance as of the time of service. The acquisition grew the company’s MSR portfolio to $310 billion.

Freedom Mortgage was ranked as the sixth largest servicer of all-agency loans, with a 4.6% market share and a $380.2 billion MSR portfolio based on the UPB of loans serviced.  This information comes from the data released at the end of June by Recursion, a mortgage-analytics firm.

Matrix Financial is part of the leading mortgage servicer Two Harbors Investment Corp. Matrix will pay a net book value of the mortgage company along with an additional $10.5 million premium. Matrix will start using RoundPoint as one of its services before the deal has closed. This means that RoundPoint will begin receiving transferred loans in the fourth quarter of 2022.

“Upon closing, all servicing licenses and capabilities will remain with RoundPoint, and RoundPoint will become a wholly owned subsidiary of Matrix,” the deal announcement states.

“Our acquisition of RoundPoint [founded in 2007] marks an evolution in our MSR strategy, which will deliver long-term financial and strategic benefits to Two Harbors,” Bill Greenberg, Two Harbors’ president, CEO and chief investment officer said. “The operational efficiencies and revenue opportunities it presents will add value for shareholders while deepening our involvement in the industry.”

Unfortunately, the acquisition did come with some setbacks for RoundPoint. RoundPoint lost some sales operations and had to lay off employees. According to a Worker Adjustment and Retraining Notification (WARN) notice, filed with the New York State Department of Labor, identified the closing office as the Long Island office.

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