PHH Mortgage Corporation (“PHH Mortgage”), a subsidiary of PHH Corporation (NYSE: PHH) (the “Company”), today announced it has entered into a strategic relationship to provide private label end-to-end mortgage origination services and loan servicing to HSBC Bank USA, N.A. (“HSBC”).
Under the terms of the agreements, PHH Mortgage will provide HSBC with mortgage origination processing services, as well as subservicing of HSBC's $15.5 billion prime mortgage loan portfolio and $36.6 billion of loans serviced for third-party investors (both as of March 31, 2012). It is expected that approximately 400 employees from HSBC’s mortgage facility in Depew, New York, will transfer to PHH Mortgage, which plans to maintain operations in the area.
The agreement is effective immediately, and the conversion of operations is expected to be complete in the first quarter of 2013.
“We are excited to partner with a global financial brand like HSBC,” said Smriti Popenoe, Interim President of PHH Mortgage, “and we are pleased to welcome many HSBC employees to the PHH Mortgage team. This is an outstanding example of the commitment of our Private Label Services business to serving the nation’s leading financial institutions, regional banks, community banks and credit unions, and we look forward to a long-term, strategic relationship.”“We’re thrilled and honored to welcome HSBC into our family of private label partnerships,” said Glen A. Messina, President and CEO of PHH Corporation, “and we thank them for their confidence in us. We are committed to delivering an exceptional mortgage experience to HSBC customers through our focus on operational excellence and customer service. This partnership demonstrates the strength of our franchise and our commitment to growing our private label mortgage platform.” About PHH Mortgage PHH Mortgage Corporation, a subsidiary of PHH Corporation (NYSE:PHH), provides cost-effective mortgage solutions for financial institutions, real estate brokers, and government agencies. PHH Mortgage provides full-service capabilities for originating, processing, closing and servicing mortgage loans, and is one of the top five originators of retail residential mortgages and one of the top 10 mortgage servicers in the United States 1. For more information, visit www.phhmortgagesolutions.com. 1 Inside Mortgage Finance, Copyright 2012 About PHH Corporation Headquartered in Mount Laurel, New Jersey, PHH Corporation (NYSE: PHH) is a leading provider of business process management services for the mortgage and fleet industries. Its subsidiary, PHH Mortgage, is one of the top five retail originators of residential mortgages in the United States 1, and its subsidiary, PHH Arval, is a leading fleet management services provider in the United States and Canada. PHH has more than 5,000 employees dedicated to delivering premier customer service and providing value-added solutions to its clients. For additional information about PHH and its subsidiaries, please visit the Company’s website at www.phh.com. 1 Inside Mortgage Finance, Copyright 2012 HSBC Bank USA, N.A HSBC Bank USA, National Association , with total assets of $210.3 billion as of 31 December 2011 (U.S. GAAP), serves around four million customers through its personal financial services, commercial banking, private banking, asset management, and global banking and markets segments. It currently operates more than 470 bank branches throughout the United States. There are over 370 in New York state as well as branches in Connecticut, Washington, D.C., Florida, New Jersey, Pennsylvania, Maryland, Virginia, California, Delaware, Illinois, Oregon and Washington State. HSBC Bank USA, N.A. is the principal subsidiary of HSBC USA Inc., an indirect, wholly-owned subsidiary of HSBC North America Holdings Inc., one of the nation's largest bank holding companies by assets. HSBC Bank USA, N.A. is a member of the FDIC. Forward-Looking Statements Certain statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, forward looking-statements are not based on historical facts but instead represent only the Company’s current beliefs regarding future events. All forward-looking statements are, by their nature, subject to risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied in such forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements. Such statements may be identified by words such as “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans,” “may increase,” “may fluctuate” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could.”