The recently announced merger of two mortgage originator and servicing companies will create the seventh largest servicer in the United States.

Mount Laurel, New Jersey-based Freedom Mortgage Corp. and Charlotte, North Carolina-based RoundPoint Mortgage Servicing Corp. said in a statement this morning they have entered into a merger agreement in which RoundPoint will become a wholly-owned subsidiary of Freedom Mortgage.

“This merger will create a much larger and stronger organization with significant synergies,” RoundPoint CEO Kevin Brungardt said in a statement. “RoundPoint will benefit operationally in many ways, including having access to Freedom Mortgage’s substantial origination platform. With the combination of servicing portfolios, the merger makes the company the seventh largest U.S. mortgage servicer nationwide.”

Freedom Mortgage originated 313 loans in Connecticut last year with a total volume of $43.7 million, according to data from The Warren Group, publisher of The Commercial Record.

Following the merger, Freedom Mortgage’s combined owned and subserviced mortgage servicing rights portfolio is expected to be in excess of $300 billion. The merger also provides Freedom Mortgage with an active subservicing platform and broadens the scope of the company’s co-issue origination network.

Founded in 2007, RoundPoint currently services and subservices approximately $91 billion in unpaid mortgage assets comprised primarily of agency loans. RoundPoint also originates loans through its loan officers and its correspondent program.

The transaction is subject to customary closing conditions and certain regulatory approvals and is expected to close in the third or fourth quarter of 2019.