PHH Mortgage, a subsidiary of Ocwen Financial Corp. and a non-bank mortgage servicer and originator, has entered into an agreement with Federal Home Loan Bank of Indianapolis (FHLBank Indianapolis) to purchase mortgage servicing rights (MSR) through its Mortgage Purchase Program (MPP).
FHLBank Indianapolis has more than 300 depository members and 100 participating financial institutions that originate about $2 billion annually who sell loans into MPP to replenish their capital and minimize portfolio risk. PHH has partnered with FHLBank Indianapolis as both a buyer of MSRs and a strategic partner to provide subservicing solutions to members within the FHLBank Indianapolis footprint.
“FHLBank is always looking for ways to improve the liquidity and pricing that we can offer our members,” says Dan Green, FVP and senior director of MPP at FHLBank Indianapolis. “PHH was a natural choice given its experience in co-issue, its scale and its high level of performance in subservicing.”
“We are extremely pleased by FHLBank Indianapolis’ decision to expand its co-issue/subservicing program to add PHH as its new strategic partner,” states George Henley, EVP and chief growth officer of PHH Mortgage. “This new relationship supports the bank’s mission of providing liquidity to its members and to the residential housing market. Partnering with PHH immediately enhances FHLBank Indianapolis’ sale execution and serves as a blueprint that can be replicated by other FHLBs and member banks. We look forward to working with FHLBank Indianapolis and its members, and the opportunity to provide subservicing and other value-added services in the future.”