PHH Mortgage Corp., will be losing one of its largest private-label origination customers in Charles Schwab Bank, but will be adding five new clients for which it said this new business should more than offset any lost income.
Mt. Laurel, N.J-based PHH said it was unable to reach an agreement with Schwab to renew the existing relationship. A PHH spokesman declined to comment further.
A spokeswoman for Schwab said the company is in negotiations with at least one other mortgage services provider and would release details in the coming weeks.
As for the immediate future, she said PHH would continue handling existing and new loan applications as well as loan servicing on behalf of Schwab Bank.
"In the past eight years (since Schwab Bank's inception), our loan portfolio has grown to nearly $9 billion, contributing to our recognition as a top 25 first mortgage provider and a top 10 HELOC provider," the spokeswoman said.
The five new clients, said PHH Mortgage president Luke Hayden, "will expand our nationwide footprint for sourcing mortgage originations, with a net gain of more than 25,000 financial advisors associated" with the company's private-label mortgage services clients. Agreements with these new customers were signed during the second and third quarters.
The PHH spokesman said the company is not disclosing who those new clients are now, but should release that information in its third quarter earnings statement.
