PHH Mortgage Corp., a subsidiary of Ocwen Financial Corp. and non-bank mortgage servicer and originator, has announced key servicing performance results of its subservicing relationship with Sierra Pacific Mortgage Co., a nationwide direct lender.
In the third quarter of 2021, Sierra Pacific selected PHH as its mortgage subservicer, following a rigorous selection process, and transferred a portfolio of approximately 54,000 loans with a UPB of $15 billion to PHH in December 2021.
Through the first six months following the transfer, Sierra Pacific realized significant gains across the board, including:
- 75% reduction in customer complaint volume;
- 70% reduction in the number of calls requiring customer service escalation (average calls are being answered by PHH in less than 18 seconds);
- 18% decline in one-time payments and a 22% increase in scheduled ACH payments;
- 60% savings in Sierra Pacific’s servicing oversight costs, as fewer resources are required to handle overflow complaints and manage the PHH subservicing relationship
Additionally, PHH expects its experience in special servicing and loss mitigation could reduce loss severity on Sierra Pacific’s portfolio by as much as $2 million annually. This level of cost savings is based on the company’s strong operational performance in managing defaulted loans versus Moody’s and MBA benchmarks.
“PHH has shown an unwavering commitment to providing the highest levels of customer service,” says Curtis Dair, CFO of Sierra Pacific. “We have been very pleased with their early results and their ability to meet our expectations. Their dedication to their customers is exceptional, and they have met the high standards that Sierra Pacific has for its servicing partners.”
Earlier this year, PHH was recognized for servicing excellence for the third consecutive year through Freddie Mac’s Servicer Honors and Rewards Program in the top-tier servicing group and for the second consecutive year through Fannie Mae’s Servicer Total Achievement and Rewards (STAR) performer recognition. The company also achieved HUD’s Tier 1 servicer ranking.
