TWO - Two Harbors Investment unit to acquire RoundPoint Mortgage Servicing
- Two Harbors Investment ( NYSE: TWO ) said Wednesday its unit Matrix Financial Services will acquire RoundPoint Mortgage Servicing from Freedom Mortgage.
- On closing, Matrix will pay a prelim. purchase price equal to RoundPoint's tangible net book value, plus a premium of $10.5M.
- The acquisition is expected to result in incremental annual pre-tax earnings of ~$20M for TWO, after the transfer of TWO's mortgage servicing rights portfolio to RoundPoint, through additional revenues and cost savings as a result of vertically integrating self-servicing capabilities.
- Matrix will engage RoundPoint as a subservicer prior to the deal's closing and expects to start transferring loans to RoundPoint in Q4.
- All servicing licenses and capabilities will remain with RoundPoint, which will become a unit of Matrix.
- The deal is expected to close in 2023.
- TWO also reported Q2 results .
For further details see:
Two Harbors Investment unit to acquire RoundPoint Mortgage Servicing