Freedom Mortgage to sell off RoundPoint Mortgage Servicing

After offloading its mortgage servicing rights (MSR) portfolio to RoundPoint, Matrix expects to gain approximately $20 million through additional revenues and cost savings and have “greater control over the company’s MSR portfolio through self-servicing.” Matrix also plans to leverage RoundPoint’s existing platform and capabilities to pursue additional business opportunities.

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

RoundPoint, which services and sub-services about $75 billion in unpaid principal balance (UPB) of mortgages, was acquired by Freedom Mortgage in 2020. As a result of the merger, Freedom Mortgage’s combined owned and sub-serviced MSR portfolio grew to approximately $310 billion of UPB. In 2021, the company’s servicing portfolio stood at nearly $400 billion.

“We wish RoundPoint continued success,” said Stanley Middleman, president and CEO of Freedom. “We’re excited about the new opportunities in store for them with Two Harbors.”