PHH Corp. has disclosed that it has reached an agreement to sell its entire portfolio of mortgage servicing rights, though it will subservice the loans.
On Wednesday, the Mount Laurel, New Jersey-based firm announced that a deal was negotiated to sell MSRs on $72 billion in loans as of Oct. 31.
Proceeds from the sale are estimated at $912 million, including $612 million from the MSR sales and around $300 million from servicing advances.
The buyer of the MSRs is
New Residential Mortgage LLC, and the seller is subsidiary PHH Mortgage Corp.
An initial sale in the transaction has a targeted closing date of the second-quarter 2017 and an absolute closing date of no later than the third quarter.
PHH said a subservicing agreement with New Residential has it subservicing 480,000 loans underlying the MSRs for an initial period of three years.
“This transaction is an important next step in our strategic review process and enables PHH to efficiently monetize its remaining owned MSR portfolio at the highest available price while maintaining the flexibility to maximize the value of our subservicing platform,” PHH President and Chief Executive Officer Glen A. Messina stated in the announcement. “We are continuing to evaluate the strategic options for our remaining business platforms and remain on track to complete the strategic review by the end of January 2017.”
The sale, which is subject to stockholder approval, excludes MSRs on $14.8 billion in Ginnie Mae loans, which PHH announced in November it was selling to Lakeview Loan Servicing.
