Announcement - AOT Release

Effective Monday, July 15th, 2024, PHH Mortgage is happy to announce that we are turning on the ability to accept AOT Bulk trades. The Bulk AOT process flow is listed below:

Bulk AOT Process Flow:

• Standard Bid Tape used for Mandatory Bidding will also be used for AOT trades. Bid Tapes should be sent to Ratelock@phhmortgage.com and must include requested delivery days and due time for trade (BAU).
• All End Loan Level Pricing is provided with current marketing pricing at the time of request bid.
• For expedited results, customer completes PHH AOT Bulk Commitment excel with awarded loan information along with the Trade Assignment Agreement (PDF) to Ratelock@phhmortgage.com.
• PHH will register and lock the awarded loans at the negotiated trade price.
• PHH will provide PDF Lock Confirmation with PHH loan numbers and an Excel Lock File once trade set up is completed.

• Minimum AOT amount of $250k per trade / $50K increments only
• Trades assigned cannot exceed $500K above the committed loan amount
• Only accepts trades with approved PHH counterparties
• Only accepts trades where the underlying note-rates slot to appropriate coupon
• Only accepts trades in the same delivery months that are indicated on the SendBid provided
• Eligible Loan Programs include FNMA, FHLMC, and GNMA fixed rate programs including High Balance.  Arms/ Non QM are not eligible
• Assignment of Trade Weighted Security Price used:  In all cases when an AOT is not an exact match/equal to the loans awarded (single loan trade), an Assignment of Trade weighted price will be used in calculating loan pricing. The weighted average base price will be calculated using the AOT Strike price and amount assigned verse total amount awarded with current market respot
• 48 Hour SLA PHH to Dealer
• Substitutions Available - 2% Loan Size Tolerance. Must be Same Product/Coupon as AOT. 
• Pair Outs: Each loan removed from an Original AOT will be paired out based on the individual loan details and market conditions

ACCEPTABLE ASSIGNMENT OF TRADE COUNTERPARTIES

If you have any questions, please contact your Correspondent Specialist, Sales Executive/Correspondent Sales Representative, or contact us via the support line at 1-800-929-4744.

Thank you for your continued business.