Skip to main content

PHH and Matrix Enter Into Agreement Over MSRs

NationalMortgageProfessional.com
Nov 06, 2013

PHH Corporation announced that its subsidiary, PHH Mortgage Corporation and Matrix Financial Services Corporation, a subsidiary of Two Harbors Investment Corp., have entered into a flow sale agreement for the purchase and sale of mortgage servicing rights (MSRs). Under the flow sale agreement, PHH Mortgage may sell to Matrix the MSRs on 50 percent or more of PHH Mortgage's newly-originated residential mortgage loans that are eligible for sale, subject to the parties' mutual agreement on quarterly pricing for the MSRs. The flow sale agreement has an initial term of two years, subject to earlier termination in accordance with its terms, and can be extended if mutually agreed upon by both parties. The parties have also entered into a subservicing agreement pursuant to which PHH Mortgage will act as the subservicer of the mortgage loans underlying the MSRs sold under the flow sale agreement. During the term of the subservicing agreement, PHH Mortgage will be entitled to receive subservicing income and other ancillary servicing fees related to the MSRs. Unless earlier terminated in accordance with its terms, the subservicing agreement will remain in effect so long as mortgage loans underlying the MSRs remain outstanding. Matrix may terminate the subservicing agreement without cause upon ninety days prior written notice to PHH Mortgage. If such early termination right is exercised, PHH Mortgage's subservicing fee during that ninety day period would be increased by 100 percent and Matrix would be responsible for paying customary servicing transfer costs. Glen Messina, president and CEO of PHH Corporation, said, "We are excited to work with Two Harbors, a well-respected investor in the residential mortgage market. We are optimistic that this MSR funding relationship will contribute positively to our adjusted cash flow, while we continue to subservice the underlying loans, allowing us to maintain scale for our mortgage servicing operations. This arrangement is also a further step in our strategy to transition to a capital light, fee for service business model."
Published
Nov 06, 2013
loanDepot And mellohome Introduce Home Services Bundle

loanDepot, Inc. and its sister company mellohome are launching a proprietary bundle of home buying and selling services.

Industry News
Jul 30, 2021
Gateway Mortgage Surpasses 165 Mortgage Centers With 10 New Additions

Gateway Mortgage reported significant growth in the company, prompting it to open 10 new locations across Colorado, Idaho, Oklahoma, Texas, Oregon, and Wyoming.

Industry News
Jul 30, 2021
FHFA Requires 30-Day Notice Prior To Eviction

Wednesday, the Federal Housing Finance Agency (FHFA) announced that tenants of multi-family properties must be given 30 days notice to vacate before the tenant is required to leave the premise.

Industry News
Jul 29, 2021
Houston-Based Stewart Acquires Title First Agency

Ohio-Based Agency Has 20 Offices And Operates in 32 States

Industry News
Jul 28, 2021
Planet Home Lending Reports Total Origination Volume Of $6.8B In Q2 2021

Planet Home Lending's total origination volume reached $6.8 billion in Q2 2021, up 77% from $3.9 billion in Q2 2020.

Industry News
Jul 22, 2021
FHFA Ends Controversial Refinance Fee

The FHFA announced that Fannie Mae and Freddie Mac will eliminate the Adverse Market Refinance Fee for loan deliveries, starting August 1, 2021.

Analysis and Data
Jul 19, 2021