Cherry Hill Mortgage Investment and RoundPoint Mortgage Servicing announced a new agreement this week that ties the two companies together on the mortgage servicing on as much as $2 billion per month.
Under the flow purchase agreement, a subsidiary of Cherry Hill will buy up to $2 billion per month of conventional mortgage servicing rights originated through RoundPoint’s co-issue program over the next 24 months.
The MSRs will then be subserviced by RoundPoint on Cherry Hill’s behalf pursuant to a separate subservicing agreement entered into concurrently by both companies.
The CEOs of both companies said that the deal is mutually beneficial.
“This agreement fulfills two strategic goals for Cherry Hill by diversifying our subservicing options while also producing a reliable source of MSRs to further grow our portfolio,” Jay Lown, president and chief executive officer of Cherry Hill Mortgage, said. “We are excited to partner with RoundPoint, a first-in-class servicer.”
Kevin Brungardt, chief executive officer of RoundPoint Mortgage Servicing, added, “Our relationship with Cherry Hill is another step in our plan to grow our co-issue business, as we remain a committed liquidity provider to our current and future MSR sellers. Concurrently, we are excited about the growth this adds to our subservicing business line.”
