Mount Laurel, New Jersey-based ""PHH Mortgage Corporation"":http://www.phhmortgagesolutions.com/, a private label outsourcing company that provides cost-effective mortgage solutions for financial[IMAGE] institutions, real estate brokers, and government agencies, recently announced that it is has enhanced it sub-servicing offering, which allows organizations to outsource the servicing of their loans, including customer service, escrow administration, payment, and collections.
As part of these new services, banks and other financial institutions now have the functionality through partnering with PHH Mortgage to service any single-family residential mortgages acquired from the FDIC under a loss-sharing agreement. And the company's sub-servicing solution now has the capacity and functionality necessary to service these organizations' loan portfolios, whether they consist of performing or nonperforming loans.
PHH Mortgage has also developed a hybrid sub-servicing offering that allows financial institutions to maintain customer contact while PHH Mortgage completes all the back office servicing processing. This, the company said, enables financial institutions to eliminate their need for costly in-house servicing system, while at the same time having access to the critical customer facing communication and customer touch points.
""This new sub-servicing offering is different from our standard sub-servicing offering because typically the financial institution allows us to handle the customer facing communication,"" said Martin L. Foster, SVP of servicing for PHH Mortgage. ""Today, many organizations do not have the volume, scale, or operations necessary to maintain an efficient and compliant servicing department but are concerned about losing a customer touch point. This new service allows the financial institution to maintain its brand loyalty, which is especially important for regional banks and credit unions.""
Foster said PHH Mortgage's technology will also ensure institutions have a regulatory-compliant servicing solution in place. In the current financial environment, many financial institutions are challenged to dedicate the[COLUMN_BREAK]
necessary resources to manage the risks associated with regulatory compliance, but PHH Mortgage is very focused on compliance with ever-changing federal and state laws. The company said it monitors these changes and adjusts its processes appropriately to remain in compliance at all times.
PHH Mortgage said its enhanced sub-servicing platform not only provides organizations with the ability to offer efficient, compliant, and cost-effective servicing while maintaining brand loyalty, but also offers a best practices approach due to the large volume of loans PHH Mortgage handles. The solution precludes financial institutions from having to maintain an expensive, state-of-the-art servicing platform, and it enhances the customer service experience in a cost-efficient manner, the company explained.
Following the addition of these new sub-servicing solutions, PHH Mortgage signed a multiyear contract renewal for the Mortgage Servicing Package (MSP) from ""Lender Processing Services, Inc."":http://www.lpsvcs.com/Pages/default.aspx (LPS), a Jacksonville, Florida-based provider of integrated technology and services to the mortgage and real estate industries.
""PHH Mortgage has leveraged MSP for more than 25 years, and we value the partnership we share as we continue to introduce innovative solutions to the mortgage market,"" said Dan Scheuble, co-COO of LPS.
MSP is used by PHH Mortgage to service nearly 1 million first mortgages and 100,000 home equity loans and lines. The servicing package automates all areas of the company's mortgage servicing, including loan setup and maintenance, cashiering, escrow administration, investor accounting, default management, regulatory reporting, and tax services. And by servicing home equity lines and loans, MSP helps PHH Mortgage meet increasing regulatory requirements, mitigate risk, and gain a more complete view of its borrowers' profiles, risk segmentation, and profitability.
As part of its MSP contract renewal, PHH Mortgage is also leveraging LPS Web Direct, which provides real-time online access to MSP information. The platform requires no previous knowledge of MSP, making it user-friendly and quick to implement.
""LPS Web Direct enables us to enhance our private-label offering to enable our clients to perform more customer-facing work, while we provide the back-end processing,"" Foster said. ""We can make relevant information available to our clients based on parameters we set, and, in some cases, clients can update MSP directly. This data access is a distinct advantage as we grow our business and offer our clients and valued customers more private-label servicing options.""