""PHH Mortgage Corp."":http://corporate.phh.com/phoenix.zhtml?c=187859&p=irol-Corporate revealed Monday that it will supply private-label mortgage origination services to ""HSBC Bank"":http://www.us.hsbc.com/1/2/home/personal-banking, an agreement that brought approval from market experts.
[IMAGE]The Mt. Laurel, New Jersey-based financial institution and subsidiary of PHH Corp. said that it would subservice HSBC's $15.5 billion prime mortgage loan portfolio, along with $36.6 billion of loans serviced by the bank for third-party investors.
PHH said that it expected 400 HSBC employees would transfer from its Depew, New
[COLUMN_BREAK]York-based facilities to operations elsewhere in the area.
""We are excited to partner with a global financial brand like HSBC,"" Smriti Popenoe, interim president of PHH Mortgage, said in a statement, ""and we are pleased to welcome many HSBC employees to the PHH Mortgage team.""
""We are committed to delivering an exceptional mortgage experience to HSBC customers through our focus on operational excellence and customer service,"" added Glen Messina, president and CEO of the company. ""This partnership demonstrates the strength of our franchise and our commitment to growing our private label mortgage platform.""
Paul Miller, a financial analyst with ""FBR Capital Markets"":http://www.fbr.com/, said in a note that the agreement ""should reduce the volatility of PHH's earnings mix.""
He iterated the view that ""this agreement is a meaningful development for PHH... will likely be accretive to earnings, and will offer further proof of management's focus on strengthening core operations.""
The consultancy estimated that loan servicing income would tick up by 14 percent next year, reflecting a jump to $66 million and offsetting revenue with $28 million in new expenses.