PHH Mortgage has scored a contract to service a residential portfolio. But the outsourcing arrangement will leave 150 servicing employees looking for new jobs next year.
KeyCorp will utilize PHH Mortgage to service its residential loans, the company said in a statement. While the size of the servicing portfolio was not available, PHH reported that it serviced $149.7 billion in residential loans as of Sept. 30.
Around 150 KeyCorp employees will be laid off during 2010 as a result of the outsourced servicing. The impacted facility, located in Tiedeman, Ohio, houses around 2,165 KeyCorp employees.
Impacted employees can apply for other open positions at the company, the statement said. Otherwise, they will be provided separation benefits that typically include separation pay, outplacement services and resume-development programs.
KeyCorp said residential originations through October were $1.64 billion. Volume was nearly double the $0.90 billion during the same period last year.
Prospective borrowers will still be able to use KeyBank mortgage advisors as well as telephone and online channels for new loans.
