HSBC's US subsidiary will see PHH Mortgage Corporation manage its mortgage-processing and servicing operations as part of a new strategic relationship.
PHH Mortgage, the subsidiary of PHH Corporation, will provide HSBC with mortgage originations processing services as well as sub-servicing of the bank's prime mortgage loan portfolio and serviced for others portfolio. No consideration is payable as pat of the agreement but HSBC will pay fees for the services.
At the end of March, the unpaid principal balances of the owned prime mortgage loan portfolio and the serviced for others portfolio were$15.5bn and $36.6bn, respectively.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
HSBC will continue to offer mortgages through its branch network, the group said.
"This agreement is a continuation of HSBC's strategy to reposition our US business and ensures we manage our mortgage activities most efficiently. We look forward to this new relationship with PHH Mortgage and the outstanding support they will provide," said HSBC USA's President and Chief Executive Officer Irene Dorner.
The agreement will give 400 HSBC employees the "opportunity" to transfer to PHH Mortgage.
The transfer of the operations is expected to complete in the first quarter of 2013.
BC
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
