After taking heavy losses on its mortgage servicing rights hedges last year, PHH announced in December that it was exiting the private-label origination business and selling off its servicing rights portfolio.
Under the terms of the new agreement, PHH will outsource loan processing, underwriting and closing functions to LenderLive until its current contracts that are served out of its Jacksonville office have been transitioned or completed, according to a HousingWire report. LenderLive will service those accounts from the Jacksonville operations center and hire between 250 and 400 PHH employees to work there. Over the course of the year, clients will be transitioned from PHH to LenderLive.
LenderLive said that the boards of both companies have approved the deal, which is expected to close at the end of the first quarter, HousingWire reported. At that time, the transitioning PHH employees will become LenderLive employees.
“We are excited about the opportunity of adding a significant number of talented mortgage professionals
and establishing a new operations center for LenderLive in Jacksonville,” said LenderLive CEO Rick Seehausen. “The arrangement accelerates our long-stated imperative of driving scale and operating leverage in our
private-label mortgage solutions business.”
Seehausen said LenderLive looked forward to welcoming its new PHH employees. He called the deal “a win-win for everyone involved.”
PHH getting out of private-label originations
PHH to sell off its mortgage servicing rights portfolio in massive deal
LenderLive has announced a “definitive agreement” with PHH Mortgage Corporation to assume its private-label fulfillment operations in Jacksonville, Fla.