It appears that RoundPoint Mortgage is once again on the auction block. This time around, it looks as though the $90.5 billion residential servicer will be sold to top-ranked Freedom Mortgage, Stan Middleman's shop. But it's not a done deal, sources say, at least not yet.
Freedom Mortgage, one of the largest non-bank lender/servicers in the nation, is ready to issue $250 million worth of debt at an eye-popping cost of 10.75%. Now comes the big question: What will it do with the cash?
JPMorgan Chase is apparently warming up to the idea of financing non-qualified loan originators, according to at least two industry officials who claim to have knowledge of the matter.
In just over two weeks, the first quarter will come to an end with many conventional lenders closing the books on what likely was a trying three months — one shaped by lower originations, tight profit margins and worries about the future.
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