PHH Corp.’s private-label business generates nearly three-quarters of the company’s home loan production, and the lender’s biggest client has agreed to renew its contract.
The Mount Laurel, New Jersey-based organization operates a private-label solutions unit that handles the mortgage production process from origination to closing for other firms.
In its third quarter earnings report, PHH said that it originated 45,239 residential loans for $23.536 billion through its private-label channel during the first nine months of this year.
That worked out to 74 percent of PHH’s total year-to-date production of $31.762 billion.
On Thursday, PHH Corp. President and Chief Executive Officer Glen A. Messina disclosed in a written statement that its biggest private-label client is Merrill Lynch.
The announcement indicated that its agreement with the Bank of America Corp.-subsidiary
terminates on Dec. 31.
However, PHH indicated that a new agreement has been reached with Bank of America, N.A., to continue providing
mortgage origination services to Merrill Lynch clients.
The new agreement is effective on Jan. 1, 2016.
“We are extremely pleased to continue our relationship with our largest private-label client, a trusted and well-respected firm,” Messina said in the news release. “We thank the Bank of America and Merrill Lynch teams for working with us to achieve our mutual objectives and are committed to fulfill our obligations and commitments under our new agreement.”
