Some Underlying Jumbo Origination Changes at PHH

Jumbo originator PHH Mortgage Corp. is heading toward a new year with some changes under the hood, according to the latest Moody’s Investors Service assessment of its ability to make these loans.

Although its overall assessment remains the same as the previous one, Moody’s found its underwriting practices have slipped to “average” from “above average.” Also its regulatory compliance oversight has slipped to better-than-average from “strong.”

However, the assessment of PHH’s management strength has improved and is now considered “average” rather than “below average.” Also its quality control and audit procedures are now considered better-than-average, rather than average.

Although some the jumbo market still faces some hurdles, there also have been some signs of relative revival this year.