Freedom Mortgage Parent Strikes Deal For Seneca To Grow Msr Platform

Freedom Superior LLC, the indirect parent of Freedom Mortgage Corp., has agreed to acquire Seneca Mortgage Servicing LLC from EJF Capital LP in a move aimed at expanding its mortgage servicing capabilities, the companies announced Monday. Financial terms were not disclosed.

Under the Freedom umbrella, Seneca, an asset manager that invests in and services mortgage servicing rights (MSRs), is expected to expand its platform to allow outside investors to invest in high-quality mortgage loan assets.

“We believe that combining Seneca with our premier mortgage operations will create great synergies and deliver exceptional results for Freedom’s investors,” said Greg Middleman, managing director of Freedom, in a statement. 

The move comes as mortgage companies strengthen their servicing businesses. Rocket Companies acquired Mr. Cooper Group and Bayview Asset Management acquired Guild Holding Corp. Meanwhile, United Wholesale Mortgage’s parent struck a deal to acquire Two Harbors Investment Corp., and Pennymac recently announced a deal for Cenlar.

Freedom ranked as the sixth-largest primary mortgage servicer in the fourth quarter of 2025, with a $642 billion servicing portfolio, up nearly 2.7% year over year, according to Inside Mortgage Finance.

Freedom founder, president and CEO Stan Middleman has previously highlighted the strong credit quality of recent mortgage vintages. Speaking in 2024, he said loans originated over the previous four to five years represent “the best credit that ever existed.”

To support that view, Middleman pointed to average loan-to-value ratios of roughly 50%, average debt-to-income ratios in the low 40% range and credit scores in the low 700s — an “extraordinary” borrower profile, he said.

Seneca is a fully licensed, GSE-approved mortgage servicer. Between 2013 and 2017, it serviced a $54 billion portfolio of GSE mortgage servicing rights that was later sold to Wells Fargo. The company subsequently became a wholly owned subsidiary of EJF Capital, a global alternative asset manager founded in 2005 by Manny Friedman and Neal Wilson that reported $5.4 billion in assets as of Dec. 31.

Under EJF Capital’s ownership, Seneca reentered the MSR market by acquiring newly originated conventional MSRs while using a subservicing model to outsource day-to-day servicing operations.

The acquisition is subject to customary closing conditions, including regulatory approvals. Piper Sandler & Co. served as financial advisor to EJF Capital on the transaction.