The day after Pittsfield-based Berkshire Hills Bancorp closed its acquisition of Needham’s Greenpark Mortgage Corp., the honeymoon was in full swing.

Sean Gray, Berkshire Hills executive vice president of retail banking, said he and the bank were “pumped” about the partnership. Both he and Greenpark founder Paul Gershkowitz gushed about the compatibility of the two institutions’ cultures and the friendliness with which their business has been transacted thus far.

The acquisition gives Berkshire a strong foothold in the Boston market. Greenpark is one of the top home lenders in the state. Last year, it wrote $556 million in home purchase and refinance loans, according to The Warren Group, publisher of Banker & Tradesman.

Gershkowitz said under Berkshire, he hopes to do $100 million a month and is looking to hire several people. He and Greenpark co-founder Patty O’Meara are now first vice presidents at Berkshire.

Long-Term Struggle

But the acquisition also means greater security for Greenpark in a market and regulatory environment that has seemingly made private, independent mortgage companies public enemy number one.

“It’s difficult as a privately owned, independent mortgage company to manage compliance and regulations,” Gershkowitz told Banker & Tradesman. “It’s such a difficult business to function in now because of additional compliance and regulatory burdens.”

Not to mention the conventional enmity between banks and mortgage companies.

“It was a very difficult transaction to navigate because of all the history of mortgage companies versus banks,” Gershkowitz added.

But that era may be ending. Gershkowitz said it’s likely that other mortgage companies will find homes within banks in the coming months and years.

“I would be surprised if my ex-competitors weren’t considering this over the last year or two years,” he said. “I’m sure my competitors must be looking for this.”

David Bernotas, president of 1-800 East West, the mortgage lending arm of Worcester-based Commerce Bank & Trust Co., agreed with Gershkowitz’s assessment.

“In this environment, the regulatory environment that we have, the independent mortgage company is really going to struggle in the long term,” Bernotas told Banker & Tradesman. The collapse of the housing market weeded out many of the weak, some might say unscrupulous, players, and the new market is going to test those that remain.

“It’s a regulatory environment that just keeps growing relative to expenses. It’s climbing in leaps and bounds, and unless you’ve got substantial finances behind you…” Bernotas said. “We have a staff of five just working on compliance… The number of players has to shrink.”

‘Tremendous Gateway’

Together, Berkshire Hills and Greenpark, which will operate under the same name as a division of Berkshire, look to be a formidable alliance.

“We’re an acquirer, and there’s even more synergy with Paul’s company and a bank than even a bank-bank transaction,” Grey told Banker & Tradesman. “They have a correspondent channel that we did not have, so that goes both ways… We’ve opened up whole other lines to sell loans at greater spreads to the bank. We have an insurance operation, and mortgage is a gateway product. It’s a tremendous gateway to cross sales and other products.”

Grey said Berkshire sought a partnership with a mortgage firm for two and a half years before clicking with Greenpark.

The transaction was originally expected to close by the end of the first quarter. Under the agreement, Berkshire acquires Greenpark’s business model, certain assets and its entire staff. Gershkowitz and O’Meara founded Greenpark in 2001.

Berkshire has been on an acquisition spree in the last year. Last week, it closed its acquisition of Hartford, Conn.-based Connecticut Bank & Trust Co. Last year, it acquired Legacy Bancorp, also of Pittsfield, as well as Rome Bancorp, of Rome, N.Y.

Through the acquisitions, Berkshire has grown to about $4 billion in assets and more than 60 branches.