Nonbank mortgage lender and refinancer RoundPoint Mortgage Servicing Corp. will close its Melville office this fall and lay off 71 employees, according to recent state filings.
The Fort Mill, South Carolina-based home lender and servicer said in a worker adjustment and retraining notice posted this week that it may close its Long Island office at 175 Pine Loan Road. October 27th.
Representatives for Roundpoint or its parent company, Freedom Mortgage Corporation, did not respond to requests for comment.
Founded in 2007, RoundPoint was acquired in 2020 by Freedom Mortgage, a full-service mortgage company headquartered in Mount Laurel, New Jersey. At the time of the acquisition, RoundPoint had processed approximately $75 billion in unpaid principal balances of mortgages.
“RoundPoint will bring over 378,000 new customers to the Freedom ecosystem,” Freedom Mortgage CEO Stan Middleman said in a news release about the acquisition in 2020.
RoundPoint’s Long Island office closure comes as the mortgage industry is reeling from rising interest rates.
“The mortgage origination industry has experienced a significant uptick this year, largely triggered by the jump in interest rates from 3.5% to 5.5% or 6% since the beginning of the year,” said Guy Sekara, executive chair of Inside Mortgage Finance. We are facing a downturn,” he said. Research firm and publisher that tracks the US mortgage market.
“It’s putting the brakes on a lot of mortgages,” he said. “It certainly put the brakes on refinancing.”
Cecala said new mortgage issuance is likely to drop by as much as 50% for lenders nationwide over the course of the year, impacting both traditional lenders such as banks and non-bank lenders.
JPMorgan Chase and Wells Fargo recently announced they were laying off hundreds of employees in their mortgage departments.
With fewer new mortgages and refinancing requests this year, Sekara said lenders and servicers who hired additional staff to meet the needs of last year’s new loan demand are now “right sizing” their staff. “We are taking a ‘significant move’ for
“I think we’ll see this all over the country,” he said.