A previously announced agreement for PHH Corp. to sell mortgage servicing right on government-sponsored enterprise residential loans has been executed.
Back in December 2016, Mount Laurel, New Jersey-based PHH disclosed plans to sell its MSRs on $72 billion in loans to New Residential Mortgage LLC.
PHH indicated at the time that a subservicing agreement with New Residential has it subservicing 480,000 loans underlying the MSRs for an initial period of three years.
A filing with the Securities and Exchange Commission Monday indicated that PHH closed on an initial sale of Freddie Mac MSRs on Friday. Total proceeds were $110 million.
In
addition, PHH inked a deal with New Residential that will allow it to refinance approximately 81,500 loans included in the subservicing agreement. PHH will sell the MSRs on any refinanced loans to New Residential.
The sale of PHH’s remaining Fannie Mae MSRs is expected to close in the third quarter.
