PHH may sell to Matrix the MSRs on 50% or more of PHH Mortgage’s newly originated residential mortgages that are eligible for sale, subject to the parties’ mutual agreement on quarterly pricing for the MSRs.
The flow sale agreement has an initial term of two years, subject to earlier termination in accordance with its terms, and can be extended upon mutual agreement.
The three entities also have entered into a subservicing agreement. PHH Mortgage will act as the subservicer of the mortgages underlying the MSRs sold under the flow sale agreement under this agreement.
PHH Mortgage under the agreement receives subservicing income and other ancillary servicing fees related to the MSRs during the term of the subservicing agreement. The subservicing agreement would remain in effect so long as mortgages underlying the MSRs remain outstanding, unless the agreement is terminated early in accordance with its terms.