PHH to Manage HSBC's Mortgage Processing
PHH Mortgage Corporation, a subsidiary of PHH Corporation, has announced that it has entered into a partnership with HSBC Bank USA to provide private label end-to-end mortgage origination services and loan servicing to HSBC. Under the terms of the agreements, PHH Mortgage will provide HSBC with mortgage origination processing services, as well as sub-servicing 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, N.Y., will transfer to PHH Mortgage, which plans to maintain operations in the area. "We are excited to partner with a global financial brand like HSBC," said Smriti Popenoe, interim president of PHH Mortgage. "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." The agreement between PHH and HSBC is effective immediately, and the conversion of operations is expected to be complete in the first quarter of 2013. "We're thrilled and honored to welcome HSBC into our family of private label partnerships," said Glen A. Messina, president and chief executive officer of PHH Corporation. "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."