Folsom, CA – April 19, 2023 – PHH Mortgage Corporation (“PHH”) recently announced key servicing performance results of its subservicing relationship with Sierra Pacific Mortgage Company (“Sierra Pacific”).
In the third quarter of 2021, Sierra Pacific selected PHH as its mortgage subservicer, following a rigorous selection process, and transferred a portfolio of approximately 54,000 loans with a UPB of $15 billion to PHH in December of2021. Through the first six months following the transfer, Sierra Pacific realized significant gains across the board, including:
- 75% reduction in customer complaint volume
- 70% reduction in the number of calls requiring customer service escalation
- 18% decline in one-time payments and a 22% increase in scheduled ACH payments
- 60% savings in Sierra Pacific’s servicing oversight costs
Additionally, PHH expects its deep experience in special servicing and loss mitigation could reduce loss severity on Sierra Pacific’s portfolio by as much as $2 million annually. 1 This level of cost savings is based on the Company’s strong operational performance in managing defaulted loans versus Moody’s and MBA benchmarks. PHH’s proven special servicing capabilities and track record of helping distressed customers is creating opportunities to support its clients through a difficult mortgage cycle and possible recession.
Curtis Dair, Chief Financial Officer at Sierra Pacific, said, “PHH has shown an unwavering commitment to providing the highest levels of customer service. We have been very pleased with their early results and their ability to meet our expectations. Their dedication to their customers is exceptional, and they have met the high standards that Sierra Pacific has for its servicing partners.”
Scott Anderson, Executive Vice President and Chief Servicing Officer at PHH, said, “What sets PHH’s subservicing platform apart is our ability to really understand our clients’ business needs and pain points to then work together to provide a solution that achieves their objectives. By delivering on our commitments for valued partners like Sierra Pacific, we’ve been able to not only offer improved servicing performance, but also enhance their business in multiple areas. Mortgage originators are realizing immediate cost savings and performance gains when switching to the PHH servicing platform. We believe our ability to deliver best-in-class servicing, recapture, and capital markets performance is solidifying our position as the premier subservicer in the industry.”
See the original article here: www.finance.yahoo.com/news/phh-mortgage-announces-initial-results
1 Estimated loss severity calculation of Sierra Pacific’s subserviced portfolio represents losses avoided when comparing PHH to other servicers and is derived from an internal PHH model based on total UPB serviced, total loans serviced, overall portfolio delinquency, loss severity percentage, and other assumptions.