Profile: PHH Corp (PHH.N)
9 Oct 2015
PHH Corporation (PHH), incorporated on December 9, 1953, is an outsource provider of residential mortgage services. The Company conducts its business through two segments: Mortgage Production and Mortgage Servicing. Its Mortgage Production segment originates, purchases and sells mortgage loans through PHH Mortgage. The Mortgage Servicing segment services mortgage loans originated by PHH Mortgage and acts as a subservicer for certain clients that own the underlying servicing rights. The Company is a non-bank mortgage originator and servicer of United States residential mortgage loans. Through its wholly-owned subsidiary, PHH Mortgage Corporation and its subsidiaries (PHH Mortgage), the Company provides outsourced mortgage banking services to a variety of clients, including financial institutions and real estate brokers throughout the United States and are focused on originating, selling and servicing residential mortgage loans.
The Company’s Mortgage Production segment provides private-label mortgage services to financial institutions and real estate brokers. It generates revenue through fee-based mortgage loan origination services and the origination and sale of mortgage loans into the secondary market. PHH Mortgage sells all saleable mortgage loans that it originates to secondary market investors, which include a variety of institutional investors, and initially retains the servicing rights on mortgage loans sold. The mortgage loans are typically sold within 30 days of origination and classified as held for sale until sold. It source mortgage loans through its retail and wholesale/correspondent platforms. Within its retail platform, the Company operates through two principal business channels: private label and real estate. The Company offers complete mortgage outsourcing solutions to wealth management firms, regional banks and community banks, including Merrill Lynch Home Loans, a division of Bank of America, National Association, Morgan Stanley Private Bank, N.A. and HSBC Bank USA. Its real estate channel is primarily supported by its relationship with Realogy. The Company purchases closed mortgage loans from community banks, credit unions, mortgage brokers and mortgage bankers, and also acquires mortgage loans from mortgage brokers.
The Mortgage Production segment includes PHH Home Loans, which is a joint venture that it maintains with Realogy Corporation. The Company owns 50.1% of PHH Home Loans through its subsidiaries and Realogy owns the remaining 49.9% through their affiliates.
The Company’s Mortgage Servicing segment services mortgage loans originated by PHH Mortgage, purchases mortgage servicing rights from others and acts as a subservicer for certain clients that own the underlying servicing rights. It services loans on behalf of the owners of the underlying mortgage, and the Company has limited exposure to credit risk. It generates revenue in its Mortgage Servicing segment through contractual fees earned from its servicing rights primarily based on a percentage of the unpaid principal balance, or from its subservicing agreements, which are a stated amount per loan.
The Company competes with Wells Fargo Home Mortgage, Chase Home Finance, Bank of America and CitiMortgage, Quicken Loans, Ocwen Financial Corporation and Nationstar Mortgage Holdings, Inc.
3000 Leadenhall Rd
MOUNT LAUREL NJ 08054-4606