Banking

Charlotte mortgage company enters into merger deal with New Jersey firm

This rendering shows what RoundPoint Mortgage Servicing Corp.’s new headquarters in Fort Mill, S.C., could look like. On Friday, RoundPoint announced that it will become a subsidiary of a New Jersey-based mortgage company through a planned merger of the two firms.
This rendering shows what RoundPoint Mortgage Servicing Corp.’s new headquarters in Fort Mill, S.C., could look like. On Friday, RoundPoint announced that it will become a subsidiary of a New Jersey-based mortgage company through a planned merger of the two firms.

RoundPoint Mortgage Servicing Corporation announced on Friday that it will become a subsidiary of New Jersey-based Freedom Mortgage through a planned merger of the two firms.

It was not immediately clear what the deal could mean for RoundPoint’s local employment. The announcement comes a year after RoundPoint said it was relocating its Charlotte headquarters near Charlotte Douglas International Airport to Fort Mill, S.C., in exchange for incentives from South Carolina.

A spokesperson for RoundPoint on Friday refused to disclose how many employees work for the privately held company. The spokesperson said the firm had no further comment. A spokesperson for Freedom did not return requests for comment.

The merger, which requires regulatory approvals, is expected to create the seventh-largest U.S. mortgage servicer, the companies said. The deal is expected to close in the third or fourth quarter of this year, they said.

RoundPoint was founded in 2007. In a statement, RoundPoint CEO Kevin Brungardt said the combination will create a much larger and stronger organization.

In May of last year, RoundPoint announced a decision to shift its Charlotte headquarters in Parkway Plaza Business Park to Fort Mill and create 1,100 new jobs as part of a $34 million investment by the firm.

Those plans called for RoundPoint to put the headquarters in Southbridge Business Park, at the former Charlotte Knights Stadium property. At the time, a RoundPoint spokeswoman said all of its Charlotte jobs would be relocated to the new facility.

In exchange, South Carolina awarded the company job development credits and a $500,000 state grant to York County to assist with site preparation and building construction costs.

In a May 2018 press release, London-based real estate firm Savills said it had finalized a deal to build a 150,000-square-foot office building to house RoundPoint’s new headquarters. The project is expected to be completed by the third quarter of this year, Savills said at the time.

In August, S.C. Gov. Henry McMaster participated in a groundbreaking for the office.

North Carolina incentives

North Carolina offered millions of dollars in incentives to retain RoundPoint, according to documents the Observer obtained last year through a public records request.

The state offered an incentives package worth about $4.3 million, including a $3.5 million grant and $835,500 in community college training for employees, according to a September 2017 proposal. In exchange, RoundPoint would have invested $34 million in its expansion, the document showed.

Records showed Mecklenburg County and the city of Charlotte were willing to provide as much as $1.9 million combined to retain the firm. RoundPoint had about 540 jobs in Mecklenburg County as of 2017, according to the documents.

In an interview in October, Brungardt told the Observer that North Carolina put its best foot forward but couldn’t match South Carolina’s offer.

Deon Roberts has covered Charlotte’s financial services industry for The Charlotte Observer since 2013. His beat includes Bank of America and Wells Fargo. He attended Loyola University in New Orleans and is a native of Lafitte, La.
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