Announcement: Assignment of Trade Update

PHH Mortgage is excited to announce the addition of Cohen/JVB as a new acceptable counterparty for Assignment of Trade (AOT) bulk trades. The Correspondent Seller Guide (Section 4.2.2 Mandatory Commitment) was updated to reflect this counterparty expansion. As a reminder, the bulk AOT process details are outlined below.

Bulk AOT Process Flow

• Standard bid tape used for Mandatory bidding will also be used for AOT trades. Bid tapes should be submitted 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, complete the PHH AOT Bulk Commitment excel with awarded loan information, along with the Trade Assignment Agreement (PDF), and submit 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.

Bulk AOT Requirements

• Minimum AOT amount of $250,000 per trade / $50,000 increments only
• Trades assigned cannot exceed $500,000 above the committed loan amount
• Trades must be with an approved PHH AOT counterparty (see below)
• Trades must directly link to underlying note-rates to the appropriate coupon (see below)
• 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. ARM and Non-Agency 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 versus the total amount awarded using current market price.
• 48 hour SLA PHH to dealer
• Substitutions Available: 2% loan size tolerance between original trade and substitute trade; substitute trade must be the same product/coupon as original trade
• Pair Outs: Each loan removed from an original AOT will be paired out based on the individual loan details and market conditions

Eligible AOT Coupon Ranges

Eligible Coupon Range

UM30: 4.0 to 7.0

UM15: 4.0 to 5.50

G230: 4.0 to 7.0

Acceptable AOT Counterparties

Counterparty
Bank of Oklahoma	Barclays	BMO Financial Group
Citibank	Cohen/JVB	Daiwa
Fannie Mae	Freddie Mac	Goldman Sachs
HillTop Securities, Inc.	Huntington Securities Inc.	Jefferies
JP Morgan	Mitsubishi Securities	Mizuho
Morgan Stanley	Nomura	Performance Trust
PNC Bank	Santandar Capital Markets (formerly Amherst)	SouthStreet
Texas Capital Bank/Securities	UMB Bank (Missouri)

If you have any questions, please contact your Correspondent Specialist, Regional Sales Executive, or contact us via the support line at 1-800-929-4744. Email inquiries can be sent to PHHCorrSupport@phhmortgage.com or RateLock@phhmortgage.com.

Thank you for your continued business!