Announcement- Change to Calculation of Early Payoffs

Effective for loans funded on and after October 1st, 2022, the calculation for the fee associated with Early Payoffs will change.

Should a loan that was sold to PHH, be paid in full between 0 - 180 days, (excluding the Purchase Date; including the day of payoff) following the date of purchase, the Seller will be charged a penalty in accordance with the following schedule:

  • For Loans paid in full between 0 - 90 days of purchase: repayment of the greater of (i) the premium price above par, or (ii) the applicable value in accordance with the SRP Product Grid set forth below.
  • For loans paid in full between 91 - 180 days of purchase; repayment of the applicable value in accordance with the SRP Product Grid set forth below.
SRP Product Grid (fees are assessed as a percentage of the unpaid principal balance of the Loan at the time of acquisition by PHH).
  • Fannie Mae and Freddie Mac Loans: 150 bps
  • FHA/VA/USDA Loans: 200 bps
  • All other Loans: 100 bps

SRP Schedule listed above is submit to change at PHH’s discretion.  This policy will be updated in the PHH Mortgage Correspondent Lending Seller Guide.

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

Thank you for your continued business.