PHH Mortgage Corp. has entered into a strategic relationship to provide private-label mortgage origination services and loan servicing to HSBC Bank USA NA. HSBC currently administers more than $210 billion in assets.
Under the terms of the agreements, PHH Mortgage will provide HSBC with mortgage origination processing services, as well as subservicing for HSBC's $15.5 billion prime mortgage loan portfolio and $36.6 billion third-party loan servicing portfolio. Approximately 400 employees from HSBC's mortgage operations in Depew, N.Y., are expected to transfer to PHH Mortgage.
The companies say the agreement is effective immediately, and the conversion of operations is expected to be complete in the first quarter of 2013.