PHH Mortgage parent ready to sell

phh-mortgage

A mortgage center in Western New York, which is the parent company of PHH Mortgage, has finally confirmed its intention to split or sell off its mortgage and auto fleeting leasing businesses.

According to February 11th fourth-quarter earnings release of PHH Corp., it has retained Kirkland & Ellis LLP, Centerview Partners LLC and J.P. Morgan Securities LLC to “assist in exploring ways to maximize shareholder value through the separation or sale of the company’s fleet business, mortgage business or both.”

The splitting or selling of the mortgage business that would affect PHH’s local operations remains unclear. The company entered the Western New York market in 2013 and took over HSBC Bank USA N.A.’s mortgage processing operations.

HSBC transferred, but didn’t sell, the mortgage arm of its business to PHH under the agreement. PHH mentioned that it would set up shop in Western New York at that time and would initially hire as many as 400 local workers, many of whom would likely be former HSBC workers who had been employed at HSBC’s mortgage center in Depew.

According to the plan of the New Jersey-based company, there will be about 800 workers to be housed in a $34 million back-office complex under construction on Wehrle Drive in Amherst. The Amherst Industrial Development Agency has given the project with $4.5 million in incentives.

The construction on the new building will push through according to a PHH spokesperson. Additionally, the company remains committed to maintaining its presence in the Buffalo area.

[Buffalo Business First]

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