July 27, 2021

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Mortgage News

RoundPoint revs up retail operations with new leadership

RoundPoint Mortgage has added three new executives to its management team to expand retail operations.

The Mortgage Subservicer’s Board of Directors has named Patrick McEnerney Chief Executive Officer. McEnerney was managing director at Deutsche Bank for 14 years ago Liberty mortgage brought him in as Executive Vice President in August 2020.

RoundPoint also added a new Chief Administrative Officer, Joseph Gormley, who previously held senior positions in Housing and Urban Development. There he served as the Federal Housing AdministrationDeputy Assistant Secretary for Single Family Homes where he oversaw the FHA’s single family home mortgage insurance operations, including procurement and maintenance policies, information technology strategy and quality control. Prior to joining the HUD, Gormley was a regulatory advisor to the Mortgage Bankers Association.

RoundPoint also hired a veteran of the retail mortgage sector, Scott Bristol, who previously oversaw national mortgage production at Flagstar Bank. Before joining Flagstar Bank, he was President of Prime lendingThere he expanded the bank’s retail business from $ 2 billion to $ 15 billion in annual volume.

In an interview with HousingWire, McEnerney said the new leadership team is “ideal” for the growth that RoundPoint Mortgage has in store. McEnerney explained how RoundPoint is preparing for that pull down of the historic refinancing boom of last year.

“We have positioned RoundPoint to do well in an environment of rising or stable rates,” said McEnerney. “However, we are optimistic that there will be adequate refinancing activity.”

McEnerney said that with the merger, RoundPoint Mortgage will have 90 retail stores.

Freedom is one of the largest lenders in the country. It was the third largest originator in terms of single family loans granted in 2020, according to HMDA data from 2020. The origination volume rose last year by 247% to USD 99.23 billion, almost entirely due to refinancing. Freedom issued 366,928 refi loans worth $ 92.9 billion last year. It just followed Rocket mortgage and United Wholesale Mortgage on the Refi ranking.

Freedom, the leading FHA and VA lender in America, closed down Acquisition from RoundPoint last year under a contract that increased the New Jersey-based lender’s portfolio of owned and underserved mortgage servicing rights to $ 310 billion in unpaid mortgage balances.

It wasn’t a perfectly harmonious advertisement. RoundPoint sued Freedom Mortgage when it attempted to withdraw the transaction over a credit facility RoundPoint closed in 2018. Freedom countered, and the two companies settled the matter voluntarily.

In the past few years, RoundPoint has significantly shifted its business from owning mortgage servicing rights to the primary subservicer, which would protect the company against the risk of mortgage default in the coming months as mortgage forbearance options expire after COVID-19.

Mortgage service providers are usually responsible for collecting payments and remitting the payment to investors. When the underlying borrower fails to make payments – as lenient borrowers do – servicers can be on the heels of investors.

Mortgage subservicers have the same responsibilities for collecting payments, but they do not have the mortgage servicing rights and therefore do not have as much liability.