PHH Mortgage Corp. has entered into a strategic relationship to provide private-label end-to-end mortgage origination services and loan servicing to HSBC Bank USA.
Under the terms of the agreements, PHH Mortgage will offer 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). Roughly 400 employees from HSBC's mortgage facility in Depew, New York are expected to 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.
PHH Mortgage, a unit of PHH Corp., offers cost-effective mortgage solutions for financial institutions, real estate brokers, and government agencies. PHH Mortgage offers full-service capabilities for originating, processing, closing and servicing mortgage loans.