Frequently Asked Questions

FAQ

Most Common Questions

PHH Corporate Address
PHH Mortgage
1 Mortgage Way
Mt Laurel, NJ 08054
Toll free phone: (866) 946-0081

Servicing, Toll Free Number: (800) 449-8767
Table 1-1
Payments to: Original Note/Bailee Docs: Final Documents

PHH Mortgage

P.O. Box 371458

Pittsburgh, PA 15250-7458

Overnight Address:

PHH Mortgage

ATTN: 371458

500 Ross Street 154-0470

Pittsburgh, PA 15250

Wells Fargo CTS-PHHO

1100 Virginia Drive, Suite 100

Fort Washington, PA 19034- 3276

PHH Mortgage

Management Contact Information

Table 1-2
Name Title Email Phone
Andy Peach SVP, Head of Correspondent Lending andy.peach@phhmortgage.com 704.400.4080
Bobbi Rochford Director of Correspondent bobbi.rochford@phhmortgage.com 800-929-4744X84400
Amber Ponente Sr. Manager of Capital Markets amber.ponente@phhmortgage.com 800-929-4744X84300
Tyler Rinehart Manager, Counterparty Credit tyler.rinehart@phhmortgage.com 215-383-0327X5819

Communication Information

Table 1-3
Type Area Selection Contact Information
Seller Approvals
8:30 AM – 5:00 PM ET
Counter Party Risk Approval Approvals and Re- Certifications
Mandatory and Best Efforts Commitment
8:30 AM – 8:00 PM ET
Capital Markets Pricing, Commitment Requests, All Other Requests
Sales
8:30 AM – 5:00 PM ET
Business Development Manager Questions, Clarifications
Support
8:30 AM – 5:00 PM ET
Seller Ops Support Team Questions, Clarifications
Funding
8:30 AM – 5:00 PM ET
Seller Ops Support Team Funding Questions, Wiring, Purchase Advise
QC
8:30 AM – 5:00 PM ET
Quality Control QC Correspondence and Documentation
Final Docs
8:30 AM – 5:00 PM ET
Final Docs Final Doc Questions and Alert for Uploaded Docs

Holidays
PHH will observe the following holidays as days that are not permitted as funding, nor eligible to be included as a rescission day. PHH will be closed unless indicated otherwise below:
  • New Year’s Day
  • Martin Luther King Day 
  • Presidents Day 
  • Memorial Day 
  • Independence Day/July 4th 
  • Labor Day
  • Columbus Day— PHH is open for business this day; however, this is not an eligible funding or rescission day
  • Veterans Day— PHH is open for business this day; however, this is not an eligible funding or  rescission day
  • Thanksgiving Day
  • Day after Thanksgiving— PHH is closed; however, this day is eligible to be calculated in a rescission period
  • Christmas Day

PHH’s lock and extension policies can be located in Chapter 4.  You can click below to download the Seller Guide.

Our top three common pre-purchase conditions are listed below:
  1. Initial upload missing required documents. PHH requires the entire credit and closing file to review prior to purchase, however, the following documents must be included in the initial submission to move the loan into review:
    • Initial and final application
    • Loan Estimate
    • Final Closing Disclosure
    • Copy of original Note
    • Unrecorded Mortgage/DOT
    • Title Commitment
    • Right of Rescission (if rescindable transaction)
  2. Missing or incomplete fraud report. PHH requires a copy of the Seller’s clear fraud report which includes all participants to the loan transaction.
  3. Incomplete Verbal Verification of Employment. The VVOE must include the employer’s phone number and the source used to obtain the phone number.

Please access our Products page. This page will provide you all the information you need regarding our current product listing and overlays.

Any questions regarding a delivered loan can be escalated to your Correspondent Specialist. If you are unaware of the Correspondent Specialist assigned to your account, please use our general Ops email at PHHCorrSupport@PHHMortgage.com and we will have your Correspondent Specialist get back to you.

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Located in Mount Laurel, New Jersey, PHH Mortgage, Inc. (PHH) has been providing mortgage lending and servicing solutions since 1984. PHH is dedicated to responsible and ethical practices through delivering an exceptional customer experience.

As an approved Fannie, Freddie Mac, FHA, VA, and USDA Seller/Servicer, PHH offers industry- leading mortgage solutions, subservicing and portfolio retention services for our clients while providing borrowers with an excellent service experience throughout the life of their loan.

Our company is built on a foundation of trusted partners, an unwavering dedication to customer service, and ethical and responsible practices.

This guide governs business relationships for PHH. This Seller Guide sets forth the terms and conditions for selling loans to PHH by an approved Third-Party Loan Originator (Seller). The guide also provides information that will assist the Seller with transactions from application to loan purchase. The guide will not provide specific agency guidelines or updates to applicable regulatory, local, state and federal requirements.

The Seller is bound by the provisions of this Seller Guide and is required to comply with all requirements contained within this guide as well as, Agency guidelines and applicable regulatory, available on individual agency websites.

All policies, procedures, requirements, programs and products are subject to change at any time. It is the responsibility of the Seller to institute these updates and changes by the required date.

The scope of this Guide includes delegated bulk loans, and Mandatory Commitments and Best Efforts Commitments.

PHH Corporate Address
PHH Mortgage
1 Mortgage Way
Mt Laurel, NJ 08054
Toll free phone: (866) 946-0081

Servicing, Toll Free Number: (800) 449-8767
Table 1-1
Payments to: Original Note/Bailee Docs: Final Documents

PHH Mortgage

P.O. Box 371458

Pittsburgh, PA 15250-7458

Overnight Address:

PHH Mortgage

ATTN: 371458

500 Ross Street 154-0470

Pittsburgh, PA 15250

Wells Fargo CTS-PHHO

1100 Virginia Drive, Suite 100

Fort Washington, PA 19034- 3276

PHH Mortgage

Management Contact Information

Table 1-2
Name Title Email Phone
Andy Peach SVP, Head of Correspondent Lending andy.peach@phhmortgage.com 704.400.4080
Bobbi Rochford Director of Correspondent bobbi.rochford@phhmortgage.com 800-929-4744X84400
Amber Ponente Sr. Manager of Capital Markets amber.ponente@phhmortgage.com 800-929-4744X84300
Tyler Rinehart Manager, Counterparty Credit tyler.rinehart@phhmortgage.com 215-383-0327X5819

Communication Information

Table 1-3
Type Area Selection Contact Information
Seller Approvals
8:30 AM – 5:00 PM ET
Counter Party Risk Approval Approvals and Re- Certifications
Mandatory and Best Efforts Commitment
8:30 AM – 8:00 PM ET
Capital Markets Pricing, Commitment Requests, All Other Requests
Sales
8:30 AM – 5:00 PM ET
Business Development Manager Questions, Clarifications
Support
8:30 AM – 5:00 PM ET
Seller Ops Support Team Questions, Clarifications
Funding
8:30 AM – 5:00 PM ET
Seller Ops Support Team Funding Questions, Wiring, Purchase Advise
QC
8:30 AM – 5:00 PM ET
Quality Control QC Correspondence and Documentation
Final Docs
8:30 AM – 5:00 PM ET
Final Docs Final Doc Questions and Alert for Uploaded Docs

Holidays
PHH will observe the following holidays as days that are not permitted as funding, nor eligible to be included as a rescission day. PHH will be closed unless indicated otherwise below:
  • New Year’s Day
  • Martin Luther King Day 
  • Presidents Day 
  • Memorial Day 
  • Independence Day/July 4th 
  • Labor Day
  • Columbus Day— PHH is open for business this day; however, this is not an eligible funding or rescission day
  • Veterans Day— PHH is open for business this day; however, this is not an eligible funding or  rescission day
  • Thanksgiving Day
  • Day after Thanksgiving— PHH is closed; however, this day is eligible to be calculated in a rescission period
  • Christmas Day
Funding Fee Tax Service Fee Flood Cert Fee
$295.00 $75.00 $19.50 *

* Flood Cert Fee waived if Flood Determination is Life of Loan (LOL) and ordered through Corelogics Flood Services

PHH: 222195996 / Branch #001
Should recorded documents and/or the final title policy remain outstanding for more than 180 days after the Mortgage Note date, the Seller will receive notice that the document must be delivered within 30 days. If the document is not delivered by the indicated deadline, PHH will engage the services of a third party to procure the documents. Any cost associated with procurement will be passed through to the Seller plus a $50 fee per respective loan.
E-signatures are allowed on most documents in accordance with federal and state law requirements. At this time, PHH does not accept eNotes.
PHH recommends subscriptions to industry mailings and websites to remain current on changes and requirements within our industry. Sellers can access the PHH Correspondent Lending AllRegs page for current guides, documents and updates via the link on the PHH Correspondent portal, or on our website, www.PHHFunding.com. PHH strongly encourages Sellers to subscribe to our automated email alerts via our AllRegs page. PHH announcements are also posted on the Welcome page of the PHH Correspondent portal.
Yes, PHH will accept loan terms other than the standard.
All post-funding documents should be received by PHH within 90 days of the Mortgage Note date.
Underwriting and closed Loan Files may be uploaded via the PHH Correspondent portal site at TPO Connect
original-Mortgage-Note-be-endorsed
Upon purchase of a Seller’s loan, PHH will send a report to the Seller identifying those documents or items that continue to be outstanding but are necessary to complete documentation of the loan. A monthly report of these post-funding items will include the name of the borrower, the name of the document, the status of the document, the location of the document, and the age of the loan.
Yes, loan amounts should be in whole dollar amounts.
PO Box 371458
Pittsburgh, PA 15250-7458
Post-funding final or trailing documents include (but are not limited to) the following: 
  • Original recorded mortgage/Security Instrument and any applicable riders or addendums
  • Original recorded assignment of mortgage as required
  • Original final title insurance policy and any required waivers, attorney’s opinion or any applicable endorsements
  • Original Mortgage Insurance Certificate
  • Certified copy of the recorded Power of Attorney
  • FHA Mortgage Insurance Certificate (MIC)
  • VA Loan Guarantee Certificate (LGC)
  • USDA Loan Note Guarantee (LNG)
  • Copy of Notice of Assignment, Sale or Transfer (AKA Goodbye Letter) sent to borrower regarding transfer to PHH
State Cushion in Months
GU 0
ND 0
NY 0
TX 0
VI 0
PR 0
NV 0
MT 1
ID 1
All Others 2
1000200
PHH Mortgage, Its Successors and/or Assigns ATIMA
PHH Mortgage, Its Successors and/or Assigns ATIMA
Lock extensions can be requested through the Rate Lock Desk at ratelock@phhmortgage.com . Extensions costs are 2 bps per day.
30275-0990
For the delegated program, inclusive of best efforts and bulk acquisition offerings, tangible net worth will vary based on seller, however, must be at a minimum of $2.5MM with 20% liquidity. Net worth requirements may vary based on type of seller approval.
The Seller shall notify PHH immediately of any material change in its ownership, financial condition, or management.
The original Loan File must be delivered by the lock/commitment expiration date.
PHH Mortgage
1 Mortgage Way Mail Stop: DC
Mount Laurel, NJ 08054
Generally, the institution making the credit decision is responsible for reporting HMDA originations for covered loans.
Yes. PHH does accept loans where the appraisal was transferred from another lender. Please see Section 7.6 for requirements.

PHH's Correspondent Lending channel offers Sellers the flexibility to manage the loan process from originations through closing. The Seller must meet specific requirements to be eligible.
The Seller agrees not to use the name “PHH Mortgage Inc.” or “PHH” or the name or trademarks of any of the PHH subsidiaries or affiliates in any of the Seller's promotional or other materials without the prior written consent of PHH.
The Seller will not share any trade secrets, confidential information, any proprietary information regarding the practices, pricing, policies or procedures of PHH.

The Seller agrees to comply with any applicable federal, state and local laws and regulations regarding the privacy and security of consumer information. It is also required that Seller agrees to maintain adequate physical, technical and administrative safeguards in order to protect consumer information from unauthorized access.
For Sellers who are approved as delegated, the Seller is responsible to ensure loans meet the eligibility and underwriting guidelines as outlined in this Guide. The Seller represents and warrants compliance with this Guide and the Seller Agreement for all loan submissions.
If the Seller elects to use a third-party underwriting service for credit and underwriting, the Seller is still responsible and liable for compliance with Agency and PHH product parameters and underwriting guidelines on all loan submissions.
The Seller’s underwriting authority is determined at PHH’s discretion.
At any time, PHH reserves the right to conduct an audit of the Seller’s offices during normal business hours. The Seller must provide the assistance of one or more knowledgeable and responsible employees to assist PHH in such audits. PHH must be given access to all records and files pertaining to the loans and any other information needed to ensure that the Seller is in compliance with the terms and provisions of this Guide and the Seller Agreement.
PHH has the right to examine any and all records that pertain to loans governed by this Seller Guide. Such records must include the individual Loan File, all accounting reports associated with the loan, information and documentation that PHH may deem necessary to verify that Seller is in compliance with PHH requirements.
The Seller is responsible to ensure that any electronic documents that are used (as allowable under state and federal law) meet all legal standards and requirements, and that Seller has appropriate storage, retrieval and back-up systems for such documents.
Requests for these records by PHH to Seller must be satisfied within ten (10) days or receipt of the requests.
Seller will maintain such records of all loans submitted to PHH for purchase for time frame required to comply with applicable federal and state laws. In addition, Seller shall maintain each file for at least three years from the date the loan is fully paid or if loan is accelerated, for at least six years from the date of sale. It is necessary that Seller maintain an individual Loan File for each loan submitted to PHH for purchase. Files should contain:
  • MIN, from MERS registration
  • Original documents (copies of documents previously delivered to PHH)
  • PHH loan number

In addition, the file must contain the MERS Org ID. The following identifies the PHH Org ID number for MERS members who complete the registration of their loans with MERS:

  • 1st Mortgages- ID: 1000200
It is necessary that the Seller maintain an internal quality control program that meets PHH guidelines as well as standard industry requirements.
The Seller's quality control program must be documented and supported by a written plan that details the objectives and the scope of the review. The program must also include applicable policies and procedures. This written plan must be provided to PHH upon request. Results of the quality control program must also be provided, upon request, in the form of a summary report that was distributed to the Seller’s senior management.
The Seller is responsible to remediate any quality deficiencies discovered post funding on loans purchased by PHH. The Seller must be able to provide evidence of compliance with all requirements, including all disclosures provided to the borrower(s) as well as any system data needed in order to evidence compliance with said findings. Such resolution is required within five business days of notification by PHH Quality Control Team.

Any QC correspondence or documentation should be sent to:
PHHCorrespondentQC@phhmortgage.com

The Seller may be responsible for repurchase of any loan with deficiencies and/ or indemnification as per the Seller Agreement.
The Seller must meet all eligibility requirements, adhere to all applicable federal, state and other licenses, authorizations, approvals and insurance in order to be in compliance with this Seller Guide and the Seller Agreement. The Seller must also meet standard secondary market requirements and remain in compliance with any local, state or federal regulatory Agency requirements.
The Seller must meet all capital requirements, adhere to all applicable federal, state and other licenses, authorizations, approvals and insurance (such as Fidelity Bond and Errors and Omissions Insurance) in order to be in compliance with this Guide and the Seller Agreement.
The following are minimum guidelines for the Correspondent Lending program. Exceptions to these guidelines may be approved on a case-by-case basis.
Delegated Program Net Worth Requirement/Liquidity Requirement
  • Tangible net worth must be at least $2.5MM with 20% liquidity for delegated status. Net worth requirements may vary based on type of seller approval.
  • Verification of committed warehouse lines in good standing (if applicable)
Delegated Program Financial Statements
  • Two years audited financial statements plus interim financial statements
  • Most recent quarter interim financial statements
Prior to the execution of the Seller Agreement, the Seller shall provide a resolution from its board of directors, authorizing the individual signing the Seller Agreement to enter into an agreement on behalf of Seller and authorizing specific individuals who may
  • Enter into commitment letters and/or assign and transfer loan documents; or
  • Appoint other individuals to enter into commitment letters and/or assign and transfer loan documents.
PHH requires all prospective sellers to provide a completed application. Generally, the executed application should contain the following:
  • Original signed Seller Agreement
  • Articles of incorporation and by-laws (or other organizational documents)
  • All state licenses and government approvals, as applicable
  • All mortgage banker/broker licenses
  • Resumes of key principals and senior managers, including an organizational chart
  • Production type and volume breakdown, including origination source (i.e., Retail/TPO) and processing method
  • Investors, MI company, and warehouse bank references with any report cards
  • Quality Control Plan and if outsourced, fully executed copy of the agreement with the third-party vendor
  • Approved appraiser list
  • Appraiser Independence Requirements (AIR) plans
At the time of closing, Fidelity Bond and Errors and Omissions (E&O) Insurance in amounts established by PHH is required.
The minimum E&O and Fidelity Bond coverage held by the Seller must be consistent with state licensing and GSE guidelines, as applicable.
After the Seller receives approval from PHH, Seller will be provided a Seller ID that will remain as long as the Seller is doing business with PHH.
Newly established Sellers will be subject to a limited review of files submitted.
After a new Seller has successfully sold 10 loans, at PHH’s discretion and approval, the Seller may be removed from the more extensive review status. Level of review may be based on the risk of the loan type or eligibility criteria established by PHH.
The Seller’s Business Development Manager will be responsible for requesting the change to the Seller’s full review status
The following information should be reported to PHH prior to or upon occurrence, as applicable:
  • Seller’s address or phone number changes
  • Material financial changes or changes in management ordered or required by a regulatory authority
  • Resignation or termination of any senior management; Seller will provide resumes of replacement personnel within 30 days of replacement
  • Entry of any judgment or regulatory order where Seller is required to pay a claim which may have material adverse effect on financial condition of the Seller
  • Dissolution of Seller’s business
  • Notice to the Seller of an event of default on any loan sale agreements or arrangements

PHH reserves the right to suspend further business upon notification if time is required to make a determination if a continued relationship is warranted. The Seller’s failure to timely notify PHH of any of the above described changes, or any other significant changes, may result in termination.

Prior to using the PHH Correspondent portal, please access the Encompass TPO Connect User Guide. The user guide will provide the Seller with all instructions necessary to log into the website and start originating and processing Seller loans. Once the Seller has been approved by PHH, a Welcome Letter will be sent with instructions via email.
The Seller represents and warrants to PHH that all of the statements regarding the Seller (and Guarantor, if applicable) set forth below are true, correct and complete, as of the execution of the Seller Agreement, delivery of any Loan to PHH and any Closing Date:
  • The Seller is duly organized, validly existing, and in good standing under the laws of the state of its organization and has all qualifications, registrations, licenses, and permits necessary to carry on its business in each state in which Seller originates or purchases loans. The Seller agrees to provide PHH with copies of all applicable licenses, permits, exemptions or approvals upon request. The Seller has all requisite power and authority to execute, deliver and perform the Seller Agreement. All requisite action has been taken by Seller to make the Seller Agreement valid and binding upon Seller in accordance with its terms.
  •  No approval of the transactions contemplated by the Seller Agreement from any regulatory authority having jurisdiction over the Seller is required, or if required, such approval has been obtained. There is no claim, litigation, investigation or proceeding pending or threatened against the Seller that could materially adversely affecting the Seller’s business or the performance of its obligations under the Seller Agreement and the Seller has no knowledge of any circumstances indicating that any such suit, investigation or proceeding is likely.
  • With respect to any FHA Loan submitted by the Seller, the Seller is approved by FHA to participate in its direct endorsement mortgage insurance program, or is an FHA-sponsored lender with underwriting performed by PHH. With respect to any VA Loan submitted by the Seller, the Seller is either approved to originate and submit loans to VA for VA approval, to underwrite Loans with automatic authority, or is a VA-sponsored lender with underwriting performed by PHH. With respect to any USDA Loan submitted by the Seller, the Seller is either approved to originate and submit loans to USDA for USDA approval, to underwrite Loans with automatic authority, or is a USDA-sponsored lender with underwriting performed by PHH.
  • The Seller is not subject to any administrative actions and/or sanctions imposed by FHA, VA, USDA, Ginnie Mae, Fannie Mae, Freddie Mac or USDA and has not been subject to any such actions or sanctions for at least two years prior to the date of the Seller Agreement.
  • The consummation of the transactions contemplated by the Seller Agreement are in the ordinary course of business of the Seller and will not result in
    • a breach of any term or provision of the organizational documents of the Seller;
    • a breach of any term or provision of, conflict with, or constitute a default under any agreement to which the Seller or its property is subject; or
    • a violation of any law, rule, regulation, order, judgment or decree to which the Seller or its property is subject.
  • No representation, warranty or written statement made by the Seller in the Seller Agreement, this Guide, any application, documentation, schedule, exhibit, statement, or certificate furnished to PHH by the Seller contains any untrue statement of material fact or omits any material fact which could render such statement misleading.
  • The Seller acknowledges that in the event an automated underwriting system is used to underwrite any loan sold to PHH, the Seller is fully trained in the use of such automated system and followed all appropriate procedures when using such system.
After diligent investigation and inquiry, with respect to all loans being sold, as of the related Closing Date, the Seller further represents and warrants to PHH that as of delivery of any loan to PHH and the Closing Date, all of the general representations regarding the loans being sold and any of the specialty representations regarding the loans based upon the product type of the loans, all as set forth in this Guide, are true, correct and complete. The Seller further represents and warrants to PHH that as of delivery of any Loan to PHH and the related Closing Date:
  • The information set forth in the Mortgage Loan Schedule is complete, true and correct in all material respects as of the date specified therein or, if no such date is indicated therein, as of the Closing Date.
  • The Seller has the authority to sell, transfer, and assign such loan on the terms set forth in the Seller Agreement and this Guide and there has been no assignment, sale or pledge thereof by Seller, (except any pledge required pursuant to a line of credit agreement between Seller and the warehouse lender previously disclosed to PHH). The loan is free and clear of liens, claims, security interests, or encumbrances of any type including, but not limited to any pledge in favor of any warehouse lender.
  • All loans purchased by PHH comply with all applicable FHA, VA, Ginnie Mae, Fannie Mae, Freddie Mac, USDA, PHH and other applicable private investor regulations, requirements, standards, guidelines and all representations and warranties required to be made by sellers or sponsors therein are made by the Seller to PHH.
  • All FHA Loans are fully insurable by FHA and a fully transferable mortgage insurance certificate has been or will be issued by FHA. All VA Loans are eligible for guaranty by VA and a fully transferrable loan guaranty certificate has been or will be issued by VA. All USDA Loans are eligible for guaranty by USDA and a fully transferrable loan note guarantee has been or will be issued by USDA. All conventional loans are insurable by private mortgage guaranty insurers, when required, and an appropriate certificate or other evidence of such insurance has been or will be issued by a private mortgage guaranty insurer. There are no defenses, counter claims, administrative offsets, or rights of set-off affecting the validity or enforceability of any private mortgage insurance, FHA insurance, USDA guaranty or VA guaranty with respect to the loan or eligibility of such loan for private mortgage insurance, FHA insurance or guaranty.
  • All FHA Loans, USDA Loans and VA Loans are eligible for pooling in securities guaranteed by Ginnie Mae.
  • With respect to the mortgagor, the mortgaged property, or the loan, there are no facts or circumstances that exist which could be reasonably expected to cause private institutional investors to regard the loan as an unacceptable investment, cause the loan to become delinquent, or adversely affect the value or marketability of the loan or related mortgaged property.
  • Each loan has been originated in full compliance with all applicable law, including all applicable federal, state, and local laws, rules, ordinances, and regulations, including, but not limited to:
  • All Truth In Lending Act (TILA) and Regulation Z requirements, including the ability -to- repay rules
    • All Real Estate Settlement Procedures Act (RESPA) requirements
    • All TILA-RESPA Integrated Disclosure (TRID) rule requirements
    • Equal Credit Opportunity Act (ECOA) and Regulation B
    • Fair Credit Reporting Act
    • Real Estate Settlement Procedures Act of 1974, and Regulation X
    • Flood Disaster Protection Act of 1973 (as if it were a covered entity and regardless of whether the Seller is specifically subject to such statute and/or regulations)
    • Fair Housing Act
    • Home Mortgage Disclosure Act
    • Financial Institutions Reform Recovery and Enforcement Act of 1989, as amended, including all regulations issued pursuant thereto
    • Housing and Economic Recovery Act (HERA) of 2008
    • Dodd-Frank Wall Street Reform and Consumer Protection Act and any and all regulations issued in accordance therewith
    • Any and all federal, state and local licensing requirements for mortgage brokers and/or lenders, including, but not limited to the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E. Act)
    • Requirements, as applicable to the loans of FHA, VA, Ginnie Mae, Fannie Mae, Freddie Mac, USDA, and PHH. Any and all laws, rules, ordinances, and regulations relating to adjustable rate mortgages, negative amortization, and graduated payment mortgages
  • Each Loan complies with the ability-to-repay standards as set forth in TILA.
  • Each Loan is a “qualified mortgage” within the meaning assigned to such term of Regulation Z and is not a higher-priced mortgage loan. Each Loan qualifies for the safe harbor provided in Regulation Z and related rules and is entitled to the presumption that the lender satisfied the ability-to-repay requirements provided in Regulation Z and related rules.
  • The rules, regulations, and all applicable requirements of FHA, VA, USDA, and private mortgage insurance companies, hazard insurance companies or other insurers have been properly satisfied, including, without limitation, the payment by the Seller of all mortgage guaranty and insurance premiums and fees as and when due, and the submission by Seller of enforceable insurance binders, as required by PHH. The Seller shall make PHH the loss payee of each mortgage guaranty insurance, hazard, and flood insurance policies.
  • The proceeds of the loan have been fully disbursed and there is no requirement for future advances and/or disbursements. The unpaid principal balance of the loan is as stated and all costs, fees, taxes and expenses incurred in making and closing the loan and recording the mortgage have been paid.
  • The Mortgage Note and the related Mortgage are genuine, and each is a legal, valid and binding obligation of the mortgagor(s), enforceable in accordance with their terms. All parties to the Mortgage Note and the Mortgage had legal capacity to execute the Mortgage Note and the Mortgage and each have been duly and properly executed by the mortgagor(s).
  • The Mortgage has not been satisfied, canceled, subordinated or rescinded and no part of the property has been released from the lien of the Mortgage. The terms of the loan have in no way been changed, waived, impaired or modified, except for loan adjustments made in compliance with the Mortgage Note and applicable regulatory requirements. No waiver of any default, breach, violation or event of acceleration has occurred. The loan is current, and in the event the outstanding balance purchased has been credited with payments not yet collected and/or due to the Seller, the Seller will promptly collect said payment when due and notify PHH of any payments not made within 30 days of the due date.
  • Each Credit File or Loan File and all information contained therein is true, complete and accurate. The Seller is not aware of any fact not set forth in the Credit File or Loan File which PHH might reasonably consider to be adverse to the approval of the loan, or would make the loan ineligible for sale in the secondary market.
  • A title insurance commitment or a title insurance policy including all applicable endorsements has been issued by a title insurer, acceptable to PHH, insuring the Seller, its successors and assigns, or PHH as to the first priority lien of the Mortgage in the original principal amount of the Mortgage Note. The Seller has not, by act or omission, done anything which would impair the title insurance policy coverage.
  • The assignment of the loan from the Seller to PHH has been duly authorized and is valid and sufficient, and all consents and approvals to such assignment have been obtained, including in the case of cooperatives, the consent of the cooperative corporation.
  • All documents prepared by the Seller are genuine, accurate, and complete and meet the requirements and specifications established by FHA, VA, Ginnie Mae, Fannie Mae, Freddie Mac, USDA, PHH’s underwriting guidelines, this Guide, and the Seller Agreement, as applicable.
  • There is in force such flood insurance policy as is required under the Flood Disaster Protection Act of 1973, as amended, and its implementing regulations, regardless of whether the Seller is specifically subject to such statute or regulations.
  • There is in force for the loan adequate hazard and casualty insurance coverage with respect to the mortgaged property, insuring against fire or other casualties (and, if required by federal law, flood insurance), in an amount and pursuant to a policy of insurance as required by FHA, VA, Ginnie Mae, Fannie Mae, Freddie Mac, USDA, and PHH’s underwriting guidelines, as applicable. By assignment or endorsement of the Seller’s interest, PHH, its successors and assigns, is designated as a mortgagee and additional named insured with regard to such insurance.
  • No mortgage brokers or other consultants or finders were consulted or contacted in connection with or in bringing about this loan or this loan sale transaction that would be due a fee from PHH.
  • All taxes, governmental assessments, insurance premiums, water, sewer, municipal charges, leasehold payments, ground rents, homeowners association dues and other charges, have been paid and all funds paid or due to be paid have been paid and delivered to PHH in connection with any escrow accounts created concurrent with the funding of the Loan.
  • There is no proceeding pending for the total or partial condemnation of the property and the property is undamaged by waste, fire, flood or other casualty.
  • The Mortgage Note and the Mortgage are not subject to any right of rescission, setoff, counterclaim or defense, nor has any such right been asserted with respect thereto.
  • The actual loan-to-value ratio of each loan does not exceed the maximum amount permitted under the PHH’s underwriting guidelines. The appraisal prepared in connection with each property provides an accurate estimate of the bona fide market value of such property and was prepared by an appraiser who must be, at a minimum, licensed or certified by the state in which the property to be appraised is located, with no direct or indirect interest in the mortgaged property.
  • Any late charge provided under the terms of the loan or associated Mortgage Note does not exceed the maximum allowable late charge under applicable law.
  • Appropriate escrow amounts for property taxes and insurance have been collected from borrowers in conformity with RESPA and any other applicable laws (unless expressly waived by PHH). There are no payments which are unpaid including, but not limited to taxes, ground rents, water charges, sewer rents, assessments, including any assessments payable in future installments, or other outstanding charges affecting the lien of the mortgage.
  • All funds collected from borrowers have been and will be properly segregated and accounted for in accordance with all laws and regulations, and will be used for no other purpose than that for which they have been designated. All funds due FHA, USDA and VA for guarantee and insuring purposes will be promptly submitted in accordance with Agency regulations.
  • No Loan is subject to the Home Ownership and Equity Protection Act (HOEPA) of 1994, as amended, or is otherwise a high-cost loan, covered loan, or any other similarly designated loan as defined under any applicable state, local, or federal predatory lending or abusive lending laws.
  • All of the representations and warranties shall survive and continue in force for the full remaining life of the loan and are made for the benefit of PHH and its successors and assigns.
The Seller covenants and agrees with PHH that the Seller shall provide required notices and reports in a timely fashion and otherwise comply with the provisions of this Guide. The Seller shall notify PHH immediately of any material change in its ownership, financial condition, or management; any audit, examination, or review by FHA, VA, Ginnie Mae, Fannie Mae, Freddie Mac, USDA, or any federal or state regulator, which results in or threatens any administrative sanctions imposed upon the Seller; any fact or circumstance the Seller becomes aware of following the sale of any loan which would have caused the loan to be ineligible for sale to PHH if known prior to such sale. In addition, the following apply:
  • PHH may, from time to time, review, at Seller’s or PHH’s place of business, Seller’s Loan Files, policies, procedures, and records, in order to determine whether Seller meets PHH’s quality control standards.
  • The Seller shall timely deliver to each applicant a completed Regulation Z disclosure statement, including all required TILA, RESPA and TRID disclosures, federally mandated fixed rate, or ARM disclosures and HUD booklets. The Seller shall be responsible for compliance with aggregate accounting requirements relating to escrow account statements and escrow accounting procedures mandated by RESPA. The Seller shall comply with Regulation Z concerning return of all moneys paid by the applicant to Seller should the applicant rescind, and Seller shall not seek reimbursement from PHH for such refund.
  • The Seller shall deliver evidence, in a form satisfactory to PHH, of compliance with all federal, state and local laws and regulations, including, but not limited to, copies of any notice or disclosure form furnished to an applicant.
  • The Seller shall utilize only licensed real estate appraisers that meet the requirements set forth in PHH’s underwriting guidelines, and whose approval and appointment is made in compliance with regulations and standards contained in the Financial Institutions Reform Recovery and Enforcement Act or, in the case of FHA Loans, USDA Loans or VA Loans by appraisers approved by FHA, USDA, or VA, respectively.
  • At all times during the term of the Seller Agreement, the Seller shall maintain a complete set of files and records of all business activities and operations conducted by the Seller in its capacity as a loan seller of PHH. Such files and records shall be maintained in a neat, orderly and organized manner. For a period of not less than 36 months from and after the date of termination or expiration of the Seller Agreement, the Seller shall continue to maintain all such files and records at a reasonably accessible location. Alternatively, the Seller may deliver to PHH all such files and records. At all times during the term of the Seller Agreement and at all times during the 36 month period following expiration or termination of the Seller Agreement, PHH, its duly authorized agents, representative and employees, any necessary party involved in any public offering (such as Rating Agencies) and federal and state regulatory agencies which supervise PHH shall have a right, upon reasonable notice, to audit, inspect and copy any of the foregoing records, reports, files, and related materials of the Seller, and the Seller shall cooperate and assist any such audit or inspection.
  • The Seller shall conduct periodic quality and compliance control reviews of its origination operations and systems that verify, on a regular basis, the existence, methodology and processes for generation, production, delivery and accuracy of the legal documents, credit documents, property appraisals, and underwriting decisions. The Seller’s quality and compliance control review program shall include evaluation and monitoring of the overall quality of the Seller’s loan production. Upon request of PHH, the Seller shall provide copies of its reviews and findings to PHH. PHH shall have the right, in its sole discretion, to review any and all Credit Files or Loan Files relating to the loans and/or servicing rights related to loans to be sold or previously sold to PHH for quality control or other purposes. The Seller agrees to make such files available to PHH for inspection upon receipt of five business days prior written notice.
  • The fact that PHH or its designee has conducted or has failed to conduct any partial or complete examination of a loan, including review of the Credit File, Loan File, or any appraisal or other valuation data, and whether before or after sale of such loan to PHH, shall not affect PHH’s (or any of its successor’s) rights to demand repurchase, indemnification, substitution or other relief as provided herein. Any appraisal acknowledgement by PHH is only for the purpose of assisting the Seller in loan sale determinations, and does not constitute an opinion of value or statement indicating that the appraisal meets any related FHA, HUD or Uniform Standards of Professional Appraisal Practice guidelines, nor does it waive any rights or remedies PHH may have under the Seller Agreement with respect to insurability, valuation, indemnification, repurchase or otherwise. The Seller shall make PHH the loss payee of each mortgage guaranty insurance policy and hazard, wind and flood insurance policy. Ownership of, and title to, a loan will not be vested in PHH until such loan is accepted by PHH and the related purchase price is remitted to the Seller.
  • To the extent the Seller services a loan after the related Closing Date, the Seller (or its designee, which designee shall be approved in writing by PHH) shall service the loan in conformance with all accepted servicing practices and applicable requirements until such time as the servicing of such loan is transferred to PHH or its designee. The Seller shall promptly follow PHH’s instructions regarding transferring any such servicing. If applicable, the Seller shall, at its expense, mail the approved form of notification to mortgagors under the loans of the transfer of the servicing rights and instruct the mortgagors to deliver all mortgage and related payments and all tax and insurance notices to PHH after the Closing Date, all in accordance with the applicable requirements and PHH hereby agree to comply with the confidentiality and privacy provisions set forth in this Guide.
  • Confidential Information:
    • In General: Neither the Seller nor PHH shall make use of, disseminate or in any way disclose any confidential information of the other party or its affiliates, except as necessary to perform its obligations under the Seller Agreement or as may be required by applicable requirements or with the express written authorization of the disclosing party or its affiliates, and each shall keep confidential information confidential and will ensure that its affiliates, employees, agents, and representatives who have access to such confidential information comply with this non-disclosure obligation. Each party shall maintain appropriate physical, electronic, technical, and procedural safeguards to receive, store, dispose of (if applicable), and secure all confidential information to protect it from unauthorized access, use, disclosure, alteration, loss, and destruction, and to protect against any anticipated threats or hazards to the security or integrity of such records or information which could result in substantial harm or inconvenience to any customer of a party, including but not limited to any loan applicant or mortgagor. The safeguards used by each party to protect confidential information of the other party shall be no less than those used by such party to protect its own confidential information.
    • Privacy of Customer Information: Except as otherwise agreed by the Seller and PHH and permitted by the privacy requirements, each party shall use customer information of the other party only for the express purposes set forth in the Seller Agreement and disclose customer information of the other party to third persons only as necessary to implement the provisions hereof in a manner consistent with the privacy requirements. Each party shall maintain at all times a customer information security program. Each party shall assess, manage, and control risks relating to the security and confidentiality of all customer information, and shall implement the standards relating to such risks in the manner set forth in the privacy requirements. Each party shall comply with the privacy requirements applicable to such party. With respect to information that is non-public personal information (as defined in the Gramm-Leach- Bliley Financial Services Modernization Act of 1999, Pub. L. No. 106 -102, 113 Stat. 1338, and the regulations and guidance promulgated thereunder (GLBA)), the Seller shall, and covenants to provide evidence thereof at all times during the Seller Agreement, maintain processes and procedures to comply with all reuse, re-disclosure, or other customer information handling, processing, security, notification and protection requirements under GLBA, other applicable federal and state consumer privacy laws, rules, and regulations, and the applicable requirements. Further, the Seller shall ensure that it has developed, implemented and maintains effective information security policies and procedures that comply with the Interagency Guidelines Establishing Standards for Safeguarding Customer Information, Final Rule (12 CFR Part 30, Appendix B) and the Federal Trade Commission’s Standards for Safeguarding Customer Information (16 CFR Part 314) (collectively, the "Safeguarding Rules"), the applicable requirements and other applicable laws and regulations, and such policies and procedures include administrative, technical and physical safeguards designed to
      • ensure the security and confidentiality of confidential or proprietary information as may be provided to it by PHH hereunder;
      • protect against anticipated threats or hazards to the security or integrity of such confidential or proprietary information; and
      • protect against unauthorized access or use of such confidential or proprietary information.
The Seller shall ensure that Seller’s personnel handling such confidential or proprietary information have been appropriately trained in the implementation of such information security policies and procedures, and Seller shall conduct regular audits and reviews of its information security policies and procedures to ensure their continued effectiveness and determine whether adjustments are necessary in light of the Safeguarding Rules, the applicable requirements and applicable law.
The Seller covenants and agrees that it will not directly or indirectly take any action, or cause any action to be taken by any of its designated third party originators, agents, contractors, employees or affiliates, to solicit the prepayment of or any alteration in payment procedures or terms of any loan sold to PHH under the terms of the Seller Agreement. The preceding statement shall not preclude a Seller from engaging in general advertising or from servicing the refinance needs of a mortgagor who, without solicitation, contacts the Seller in connection with the refinance of such mortgagor’s loan. Regardless of whether solicitation occurred, should any loan sold under the Seller Agreement be paid in full within 180 days of purchase, other than a PHH direct refinance, the Seller shall promptly return any premium paid for the loan to PHH. The return of the premium will be required whether PHH is the purchaser of the new loan or the owner of the loan that was paid in full.
During the term of the Seller Agreement and for a period of 12 months after the termination of the Seller Agreement, the Seller, on its own behalf or on behalf of any other party, shall not, without PHH’s prior express written consent, directly or indirectly, offer employment, solicit for employment, or cause or attempt to cause the termination of employment of any present or future employees. Nothing herein shall prohibit or restrict the Seller from offering employment to any of PHH’s employees who seek employment through job opportunities made available to the general public.
The Seller acknowledges that with respect to some or all of the loans purchased by PHH from Seller, PHH or an affiliate of PHH may affect either:
  • one or more sales of the loans as whole loan transfers (each, a “Whole Loan Transfer”); and/or
  • one or more securitization transactions.
For purposes of this section, “Purchaser” shall mean the purchaser of the loan under the Seller Agreement and “Purchasers” shall include the Purchaser and any prior purchasers of the loan under the Seller Agreement.
With respect to each Whole Loan Transfer or Securitization Transaction, as the case may be, entered into by PHH or an affiliate of PHH, the Seller agrees:
  • to cooperate fully with PHH or an affiliate of PHH and any prospective purchaser with respect to any Whole Loan Transfer or Securitization Transaction, including but not limited to, all reasonable requests, due diligence procedures and disclosures, and with respect to the preparation (including, but not limited to, the endorsement, delivery, assignment, and execution) of the documents contained in the Loan File and other related documents;
  • to deliver to PHH or an affiliate of PHH, or any prospective purchaser such additional loan information requested and to indemnify PHH, its affiliates or any prospective purchaser for such information at the time of such delivery to the extent such information is not true and correct;
  • to execute all Reconstitution Agreements provided that each of the Seller and PHH or an affiliate of PHH is given an opportunity to review and reasonably negotiate in good faith the content of such documents not specifically referenced or provided for in this Guide;
  • with respect to any Whole Loan Transfer or Securitization Transaction, the Seller shall make the representations and warranties regarding the Seller and the loans as of the date of such Whole Loan Transfer or Securitization Transaction, as applicable, modified to the extent necessary to accurately reflect the pool statistics of the loans as of the date of such Whole Loan Transfer or Securitization Transaction and supplemented by additional representations and warranties that are not unreasonable under the circumstances as of the date of such Whole Loan Transfer or Securitization Transaction to the extent that any events or circumstances, including changes in applicable law occurring subsequent to the related Closing Date, would render a related loan unmarketable to a material segment of the secondary mortgage or mortgage-backed securities market or make any representations or warranties required by any Rating Agency
  • to deliver to PHH or an affiliate of PHH such information, reports, letters and certifications as are required and in the time frame and manner set forth in this section, and to indemnify the PHH and its affiliates as set forth in this section;
  • to deliver to PHH or an affiliate of PHH for inclusion in any prospectus or other offering material (including any private offering document) such publicly available information regarding the Seller, its financial condition and its Loan delinquency, foreclosure and loss experience and any additional information reasonably requested by PHH or an affiliate of PHH, and to deliver to the PHH or an affiliate of PHH any similar nonpublic, unaudited financial information, in which case the PHH or an affiliate of PHH shall bear the cost of having such information audited by certified public accountants if the PHH or an affiliate of PHH desires such an audit, or as is otherwise reasonably requested by the PHH or an affiliate of PHH and which the Seller is capable of providing without unreasonable effort or expense, and to indemnify the PHH and its affiliates for material misstatements or omissions contained (i) in such information and (ii) on the Mortgage Loan Schedule;
  • to deliver to PHH, and to any Person designated by PHH, such statements and audit letters of reputable, certified public accountants as are customarily delivered by originators such as Seller in connection with a Whole Loan Transfer or Securitization Transaction pertaining to Seller’s financial condition as shall be reasonably requested by PHH or an affiliate of PHH;
  • to deliver to PHH, and to any person designated by PHH, such legal documents and opinions of counsel (which counsel shall be independent, outside counsel of the Seller) as are customarily delivered by originators and reasonably determined by PHH to be necessary in connection with any Whole Loan Transfer or Securitization Transaction, and such outside opinions of counsel for a Securitization Transaction to be in a form reasonably acceptable to PHH, with the cost of any such outside opinions of counsel that may be required, paid by PHH or an affiliate of PHH;
  • in connection with each Whole Loan Transfer or Securitization Transaction, to agree to permit any prospective assignees of PHH who have entered into a commitment to purchase any of the loans or any independent third-parties selected by PHH to conduct Pre-Securitization TPR, Post-Securitization TPR (or any other similar pre-securitization or post-securitization review as may be required by any Rating Agency), to assess loan information and review the Seller’s servicing and origination operations, upon reasonable prior notice to the Seller, the Seller shall cooperate with such reviews and underwriting to the extent such prospective assignees or independent third-parties request information and documents (in electronic form or otherwise) that are reasonably available and provided such parties are told the confidential nature of such information. Subject to any applicable law, the Seller shall make the servicing files related to the loans held by the Seller available at the Seller’s principal operations center for review by any such prospective assignees or independent third-party during normal business hours upon reasonable prior notice to the Seller (in no event fewer than two (2) Business Days’ prior notice);
  • to agree and consent that all information provided by the Seller to any Rating Agency for the purpose of determining and which is used in connection with the initial rating of a rated securitization including the loans, or for undertaking credit rating surveillance on such securitization, may be posted on a website which complies with the requirements of Rule 17g-5 of the Exchange Act on request of PHH or an affiliate of PHH. Upon request of PHH or an affiliate of PHH, the Seller shall provide all such information in electronic form as needed to effect such posting. To the extent any Rating Agency conducts an originator review or other review of the operations of the Seller which may be used in connection with the initial rating of a securitization or the surveillance thereof, on request of PHH or an affiliate of PHH, the Seller shall provide to PHH or an affiliate of PHH in electronic form all information that was provided to the Rating Agency in connection with such review;
  • to indemnify the Purchaser and its agents, managers and trustees, each affiliate designated by the Purchaser, each person who controls the Purchaser or such affiliate and hold each of them harmless from and against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments, and any other costs, fees and expenses that each of them may sustain in any way related to (A) any untrue statement of a material fact contained or alleged to be contained in any information, report, certification, data, accountants’ letter or other material provided by or on behalf of the Seller, or provided under the Seller Agreement or this Guide by or on behalf of any third-party originator, regarding the Seller, the loans or the underwriting standards which is set forth in any offering document prepared in connection with any Securitization Transaction (collectively, the “Company Information”), or (B) the omission or alleged omission to state in the Company Information a material fact required to be stated in the Company Information or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, by way of clarification, that clause (B) of this paragraph shall be construed solely by reference to the Company Information and not to any other information communicated in connection with a sale or purchase of securities, without regard to whether the Company Information or any portion thereof is presented together with or separately from such other information, or (C) the failure by the Seller to make any required filings or provide the information needed by Purchaser for any required filings under the Exchange Act or under any other applicable securities law and regulation;
  • to indemnify the Purchaser and its agents, managers and trustees, each affiliate designated by the Purchaser, each person who controls the Purchaser or such affiliate and hold each of them harmless from and against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments, and any other costs, fees and expenses that each of them may sustain in any way related to (A) any untrue statement of a material fact contained or alleged to be contained in any information, report, certification, data, accountants’ letter or other material provided by or on behalf of the Seller (including by the Purchaser), or provided under the Seller Agreement or this Guide by or on behalf of any third-party originator, regarding the Seller, the loans or the underwriting standards which is provided to any Rating Agency in connection with any initial ratings issued in connection with any securitization or the surveillance of such ratings (collectively, the “Rating Agency Disclosure”) or (B) the omission or alleged omission to state in the Rating Agency Disclosure a material fact required to be stated in the Rating Agency Disclosure or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; and
  • to (x) represent and warrant to each Rating Agency providing a rating in a separate writing that (i) the Seller shall promptly provide to each Rating Agency all information requested by each Rating Agency in accordance with its published ratings criteria, (ii) all information provided to the Rating Agency contains no untrue statement of a material fact and does not omit a material fact necessary in order to make such information, in light of the circumstances in which it was provided, not misleading, and (iii) make any other representations or warranties or provide any other information required by any Rating Agency and (y) indemnify any such Rating Agency that provides a rating and each of its affiliates, directors, officers and employees for any losses, damages, liabilities, judgments, costs, charges and expenses (including without limitation attorneys’ fees) of whatever nature (whether foreseeable or not) arising from or in connection with the breach of any of the representations and warranties set forth in clause (x) herein, including resulting from or relating to the use by the Rating Agency of or reliance by the Rating Agency on information provided to it by the Seller.
Notwithstanding anything to the contrary, the Seller acknowledges and agrees that the provisions of this section shall apply to all subsequent reconstitutions (including, without limitation, the exercise by any person (including the Purchaser) of any optional purchase rights under the terms of a Securitization Transaction or in the event that any Loan is repurchased pursuant to the terms of any Reconstitution Agreement) that occur after any initial reconstitution. In addition, if, following the occurrence of a reconstitution with respect to any loans, the Purchaser subsequently becomes the owner of such loans again, such loans shall be subject to the terms and conditions of the Seller Agreement and this Guide.
In order to facilitate compliance with Regulation AB promulgated under the Securities Act, the Seller and PHH agree to comply with the provisions of this Guide. The Seller further covenants to provide PHH or an affiliate of PHH on request all information PHH or such affiliate of PHH deems necessary in order to comply with any amendments to Regulation AB and any other securities laws and regulations with respect to information provided in connection with a securitization of the loans and shall enter into any necessary amendments to the Seller Agreement required to comply with same.
All loans not sold or transferred pursuant to a Whole Loan Transfer or Securitization Transaction shall be subject to the Seller Agreement and this Guide and shall continue to be serviced in accordance with the terms of this Guide and the Seller Agreement and this Guide shall remain in full force and effect.
All Sellers are subject to annual re-certification approval.
In order to remain as an approved Seller with PHH, the Seller must provide all information, as requested, on an annual basis or at any time requested by PHH. The Seller must maintain all standards regarding current financial strength, volume, acceptable performance as detailed in this Guide and the Seller Agreement.
Generally, within 90 days following the end of each fiscal year of the Seller, the Seller shall deliver to PHH the following:
  • A financial statement of the Seller covering such fiscal period including a balance sheet as of the end of such fiscal year.
  • Related statements of changes in financial position and shareholders’ equity for such fiscal period setting forth in each case in comparative form.
  • Figures for the previous fiscal year all in reasonable detail, and unless otherwise agreed by PHH, such financial statements shall be audited and certified by an independent certified public accountant.
  • If Seller is an approved FHA direct endorsement underwriter (DE), said statement shall include all calculations required by FHA.
  • Satisfactory evidence that all licenses, insurance, and bonds have been renewed and are current.
PHH may at its option, require unaudited statements on a more frequent basis.
Loans delivered by the Seller to PHH must have acceptable delinquency, defect, and prepayment rates. Acceptability is determined at the sole discretion of PHH.
The Seller’s mortgage insurance claims must be acceptable to PHH.
PHH reserves the right to amend the eligibility standards contained herein at any time.
The most current products and product guidelines may be accessed via the PHH Mortgage Correspondent Lending Product Listing on the products page.
The PHH Third-Party Origination (TPO) Rate Lock Desk works with Sellers to ensure timely and accurate registration of individual loan commitments
The Seller may register and lock loans with PHH through the following methods:
  • Mini Bulk Tapes: Approved Sellers can submit bulk tapes to Ratelock@PHHMortgage.com . Sellers in return will receive a best ex per each eligible loan. All submissions must be sent to the Rate Lock email address for execution by 4:00pm ET. Any bids sent after 4:00pm ET will be denied and requested to be submitted the following business day for the current price.
Best Efforts Commitment: Approved Sellers can register and lock loans via PHH Correspondent portal. All registrations and commitments are priced to PHH's posted Correspondent Rate Sheet Daily within PHH Correspondent portal. Pricing will be posted by 9:30am ET and remain valid until 8pm ET. Seller should contact PHH Rate Lock Desk if the commitment confirmation terms appear incorrect. See the Communication Chart for contact information.
The following data fields are required to register a loan:
  • Borrower SSN (and/or Co-Borrower)
  • Borrower Last Name (and/or Co-Borrower)
  • Borrower First Name (and/or Co-Borrower)
  • Property Street Address
  • Property State
  •  Zip Code
  • Product Code (ID)
  • Note Rate
  • Loan Amount
  • Loan Term (10-30 year terms in increments of 12 months)
  • FICO (optional for some products, but recommended for all)
  • Loan Purpose
  • Occupancy
  • Doc Type (Processing Style)
  • Property Type (may require additional info such as Condo, # Units, etc.)
  • # of Units
  • One of the following: Sales Price, Appraised Value, or LTV
  • Escrows – Yes or No
Credit Scores
If credit scores are not available at time of registration, pricing may be denied or the loan may be placed in a pending status if a lock is required. Please note: Delegated loans must be locked prior to submission for review.
Property Address
A full and complete property address is required at the time of a rate lock request. Any lock requests with incomplete or incorrect addresses will be classified as invalid and subject to worst-case pricing.
Escrow/Impounds
The Seller is responsible for complying with all applicable federal, state, and local laws and regulations relating to the creation of, transfer of and maintenance of escrow/impound accounts.
If an escrow account is established, the account must include a two month cushion (unless otherwise noted in Section 1.4). Mortgage insurance impounds require no cushion.
In certain states and counties, certain borrowers may not be required to pay property taxes. If the borrower is exempt from paying taxes, the Seller must provide evidence showing the borrower is not required to pay property taxes.
The Seller may waive the escrow/impound account (except for mortgage insurance and flood insurance) specification with respect to Conventional Loans only, if the loan-to-value (LTV) is 80% or less (90.00% in California), all program eligibility guidelines and qualifications are met, and the Seller’s internal escrow waiver policy is met. The Seller must provide evidence that all requirements have been met. The standard escrow provision must remain in the Loan documents.
Escrow waivers may be subject to all applicable price adjustments for non-escrowed loans.
The Seller’s waiver of the right to collect escrow/impound funds must not weaken the right of PHH to subsequently enforce the escrow provision contained in the Loan documents in the event that the borrower fails to act responsibly.
Note: Regardless of LTV, an escrow account will be required for a primary residence loan that is made in compliance with the Regulation Z requirements for higher priced mortgage loans (HPML Section 35) or if flood insurance is required, per federal requirements.
PHH will not accept loans in states where Sellers are not properly licensed to conduct business. In the event that PHH does not have a Seller’s current license or exemption on record, PHH cannot accept loan lock requests. If any Seller license issues are under review, the Seller’s loans will be placed in a pending status. To remove the loans from pending status, the Seller must take the following steps:
  • The Seller must update all state licensing information by emailing state licensing and exemption information directly to counterpartyreview@phhmortgage.com .
  • After this information is received and the system has been updated to reflect the appropriate approval, the Seller must contact the Rate Lock Desk to complete the registration.
  • Rates effective on the original request date will not be honored.
The Rate Lock Desk will determine if a request to change loan information requires that a loan be re-priced. Changes to loan information are not automatic, nor recommended. The Rate Lock Desk may require additional information to facilitate the change. PHH routinely runs audit checks against the changed fields to guard against fraud and to comply with certain banking and regulatory requirements. Any incorrect borrower information, such as borrower name or Social Security number, will require additional documentation and may result in worst-case re-pricing. Regardless of loan status, the following fields cannot be changed:
  • Loan Purpose
  • Loan Type
  • Occupancy Type
  • Loan Program/Product
  • Loan Amount
  • Down payment Amount
  • Purchase Price
  • Interest Only Months, if applicable
  • Number of Units
  • Property Type
  • FICO Scores (including credit score used for approval)
  • Rate Lock Check Box/Lock Date
  • Interest Rate
  • Lock Days
  • Amortization Type
  • Amortization Term
  • LTV
  • CLTV
  • Appraised Value
  • Lien Position
Circumstances necessitating a change to the property address will result in worst -case pricing and may require additional documentation for review. Most changes to a locked commitment would constitute a relock and may be subject to worst- case re-pricing. The following list includes examples of changes that would be subject to re-pricing:
  • Rate lock expired prior to loan closing and disbursing
  • Delivery date expired prior to delivery of complete package
  • Loan in suspense for more than 30 days
  • Commitment cancelled/denied and new commitment requested
  • Address changes
  • Most product changes
Note: All product changes completed without re-price are at the total discretion of the Rate Lock Desk and may be approved or denied based upon existing market conditions.
The Rate Lock Desk may attempt to register and/or lock a loan, but cannot complete the registration, due to one or more of the following issues:
  • Missing/incomplete/incorrect Social Security numbers
  • Missing/incomplete/incorrect property address
  • Missing/incomplete/incorrect borrowers names
  • No credit score is provided, but product requires it
  • No DTI is provided, but product requires it
  • Loan does not fit product guidelines
  • Product code not provided
  • Rate is not selected
  • Rate Lock Window or Delivery Type is not selected
  • Requested rate is not available
  • Seller is not licensed in the state where property is located
In these cases, the loan will be placed into pending status. Placing a loan in pending status will save some of the loan information; however, the loan cannot be locked until all outstanding information has been received.
It is the Seller’s responsibility to contact the Rate Lock Desk to rectify any outstanding issues. After the correction is received and reviewed by PHH, the Seller may submit an updated lock request based on the prevailing loan rates at the time the lock request is submitted.
PHH will not assume responsibility for unlocked or unregistered loans that have been sent without all required information, on improper forms, or contain incorrect information.
Due to the volatile nature of the secondary market and market conditions, PHH pricing is subject to change at any time and without notice.
PHH will not be held responsible for incorrect registrations and/or loan lock errors. Errors, omissions, or mistakes that are reported to the Rate Lock Desk within 24 hours after the incident occurs will be considered on a case-by-case basis for correction without penalty. It is the Seller’s responsibility to contact the PHH Rate Lock Desk to report registration or lock-in issues or missing lock-in requests within 24 hours of the initial request. Any correction of errors or supplemental information for omissions after the 24-hour period will require that the loan be re-priced based on prevailing rates.
In order to sell loans to PHH, the Seller must obtain a rate lock commitment. A variety of pricing options are available to meet the needs of our Sellers.
A rate lock commitment is an agreement whereby Seller commits to deliver a loan, as described in the commitment confirmation. Seller must enter into a commitment for each loan prior to delivering it to PHH.
Depending on approval authorization, Sellers may enter into a Flow commitment under a Mandatory Commitment/mini bulk or Best Efforts Commitment.
Seller may not simultaneously utilize bulk Mandatory Commitment and Best Efforts Commitment for the same Loan. Loans previously locked in a Best Efforts Commitment may not be allocated or delivered into a Mandatory Commitment unless such commitment was locked greater than sixty (60) calendar days after the earlier of the Best Efforts cancellation date or most recent commitment expiration date.
Under a Mandatory Commitment, the Seller commits to deliver a loan to PHH that is eligible for purchase and that conforms to the terms described in the commitment prior to the end of the commitment period. PHH will charge a pair-off fee to Seller if the committed amount is not delivered by the specified date.
Prior to entering into a Mandatory Commitment, the Seller must be approved and set up for this delivery option, must be closing in their own name and utilizing an approved warehouse line or their own funds.
PHH offers the following Mandatory Commitment options:
  • Flow Mandatory: Not Available
  • Forward Mandatory Trades: Not Available
  • Mini Bulk: Minimum of $1,000,000 in UPB required. The Seller will submit an approved bulk tape to Ratelock@PHHMortgage.com for live market pricing. All loans submitted must be Agency approved and comply with PHH guidelines.
The following additional rules are applicable to Mandatory Commitments:
  • In the event that a duplicate lock is created, the loan will become subject to worst-case pricing.
  • Only Sellers with select authorization authority will be permitted to lock into Mandatory Commitments.
  • Seller may not assign or transfer a Mandatory Commitment, in whole or in part, without the prior express written consent of PHH.
Note: The term commitment is not to be confused with other agreements or terminology that may be in effect between Seller and PHH.
Under a Best Efforts Commitment, the Seller can take a Best Efforts Commitment via PHH Correspondent portal. A Seller can access PHH Pricing by utilizing PHH's Get Pricing Scenario tool via PHH Correspondent portal. Due to potential market volatility, PHH reserves the right to re-price at any time. In the event of a Rate Sheet re-price, PHH may suspend pricing until a new Rate Sheet is posted to PHH Correspondent portal. If, at any time, a Seller is actively locking during a re-price, PHH will honor pricing from the current Rate Sheet timestamp. A Best Efforts Commitment will only be deemed as a Mandatory commitment once the Seller closes the loan. Best Efforts locks will follow all Mandatory Commitment guidelines, including pair off and cancellation fees once the loan is closed with the Seller. A Best Efforts commitment that is not submitted and withdrawn will be cancelled without penalty provided the loan did not close with the Seller.
PHH offers the below Best Efforts commitment options:
Best Efforts
The following additional rules are applicable to Best Efforts Commitments:
In the event that a duplicate lock is created, the loan will become subject to worst-case pricing.
Only Sellers with the designated authority will be permitted to lock using Best Efforts.
Seller may not assign or transfer a Best Efforts commitment, in whole or in part, without the prior written consent of PHH.
Although the Seller is not required to deliver the loan when entering into a Best Efforts Commitment, PHH will track the percentage of the Seller's commitments that are not delivered for purchase or delivered for purchase and subsequently cancelled, withdrawn, denied or rejected (referred to as “fallout rate”). An above-target fallout rate may result in the suspension or loss of approval to sell loans to PHH or an adjustment to pricing on future commitments.
For all commitment types a lock confirmation is PHH written communication to the Seller confirming that the Seller’s commitment request is accepted. The lock confirmation outlines the additional terms and conditions applicable to PHH potential purchase of the loan. PHH confirmation is available via the loan in PHH Correspondent portal.
If the Seller delivers an eligible loan within the commitment period, and the loan conforms to PHH guidelines, the loan will be reviewed for potential purchase under the pricing and terms described in this lock confirmation section.
For Mandatory commitments:
  • After the Seller has communicated a request to enter into a commitment, the request is non-revocable by the Seller.
  • Once accepted or rejected, PHH will communicate its response and, if applicable, the terms of the commitment including the price and the commitment period.
  • PHH is not deemed to have accepted a request to enter into a commitment until PHH has sent its written lock confirmation to Seller.
Although PHH will use commercially reasonable means to receive requests and send responses for commitments, PHH is not responsible for any failures of the Seller to deliver or receive any such communications, and the Seller acknowledges that PHH will act in reliance of a commitment that it has accepted, even if the Seller does not receive the lock confirmation. Sellers who wish to mitigate the risk of market shifting should use time-sensitive means of communication (such as the Lock or Rate Lock Desk) rather than means without immediate feedback.
Each lock confirmation will provide PHH applicable commitment number and/or PHH loan number, which the Seller must include in all future correspondence regarding such commitment.
Further, the Seller acknowledges that prices in a lock confirmation will be those applicable at the time PHH acknowledges a completed/acceptable request for a commitment was received. PHH is not responsible for market changes or other re-pricing events that may have occurred between the time of the Seller’s request and PHH receipt. PHH reserves the right to determine the standard used to ascertain the time such request is considered to be received.
The pricing provided on the lock confirmation may be subject to change. Changes, including but not limited to changes in loan characteristics, program eligibility, commitment terms and late fees will affect the final loan price. PHH reserves the right to modify and/or revise its lock confirmation should any of the information submitted in the final Mortgage Loan Package differ from the information provided during the pricing functions service or if the loan does not meet PHH’s guidelines.
A lock confirmation does not constitute a loan decision/approval or a commitment to purchase a loan.
The Seller may request rate lock extensions via email to Ratelock@PHHMortgage.com .
PHH may grant individual Mandatory and Best Efforts Commitment extensions of up to 30 days on or before the lock expiration date. The cost to extend is 2 bps/per day. Seller must request any extension beyond 30 days through the Rate Lock Desk or via PHH Correspondent portal. Extension requests beyond 30 days from the original lock expiration will only be considered on a case-by-case basis.
Upfront fees or higher extension fee charges will be required for any exceptions to our standard extension policy unless waived by the Rate Lock Desk.
All rate lock extensions are calculated in continuous calendar days. Extension fees and policies are at the discretion of PHH and are subject to change without notice. PHH has the right to refuse to permit extensions on individual loans or products at any time for a variety of reasons including but not limited to current market conditions or changes in product eligibility/guidelines.
Sellers must advise PHH of any erroneous extension requests prior to 5:00 pm ET on the same day as the request. Requests for changes after this time will not be permitted.
All loans must be closed and disbursed by the Seller’s lock expiration date.
The commitment/lock expiration is the expiration of PHH’s commitment to honor a locked loan at a particular interest rate. Any extension requests must be made on or before the rate lock commitment expiration date, and requests received after this date would be subject to re-lock at worst-case pricing.
The delivery expiration date is the deadline within which Sellers must deliver closed loans with all required documents including complete credit and closing package to PHH. If a Seller fails to deliver by the delivery expiration, PHH will re-price the loan subject to worst-case pricing upon receipt of the credit and closing files.
The delivery expiration, when applicable, will display on the lock confirmation. PHH encourages all Sellers to monitor rate lock commitment expiration dates very carefully. Failure to extend locks prior to the commitment
If the initial commitment expiration on a loan would fall on a weekend or PHH observed holiday, PHH will automatically roll the commitment expiration date to the next business day. Any subsequent extensions or relocks, however, may cause the loan to expire on a weekend or PHH holiday. In that case, the expiration date will NOT roll to the next business day.
In all cases, the loan must be closed and disbursed by the Seller’s lock expiration date.
If the delivery expiration date falls on a weekend or PHH observed holiday, the Seller must ensure the complete credit and closing files are received on or before the delivery expiration date of the rate lock commitment. To ensure the loan is received without any issue, PHH strongly encourages Sellers to deliver the full file prior to the delivery expiration date.
If a relock on an individual commitment is requested within 30 days of the rate commitment expiration date, the loan will be relocked subject to worst-case pricing comparison and the applicable relock fee as identified in Relock Fees. If the loan is canceled prior to the commitment expiration, and then reestablished as a new loan, the same relock fee structure noted below will be applied based on cancellation date rather than commitment expiration.
  • If the relock is requested more than 30 days after the commitment’s expiration or cancellation, whichever applies, the loan will be priced at current market. However, the loan will continue to be assessed any previously purchased lock extensions or other fees unless the loan has been expired or canceled for more than 120 consecutive days.
  • PHH may deny the relock request at the original locked rate on an expired lock due to market illiquidity.
  • Rates not listed on the current rate sheet are illiquid rates and Seller may not be able to relock them.
  • Loans that are relocked must meet all current product eligibility guidelines.
  • Loans that have expired and have been relocked more than once may be subject to additional fees or may become ineligible for relock.
  • If a loan has been expired or cancelled for more than 120 consecutive days, the loan can be relocked at current market pricing with no market comparison and is no longer subject to the cost of previous extensions. In most cases, a new loan number will be assigned, and the old expired loan number will be withdrawn.
If a Seller requests to relock an individual Mandatory or Best Efforts Commitment loan that is expired or canceled for less than 30 days, the relock will be subject to the following conditions:
  • PHH will relock loans up to a maximum of four times for no greater than a total of 60 days, never to exceed the original lock window.
  • All relocks are subject to current PHH product eligibility guidelines. Loans not meeting current product guidelines will not be eligible for relock.
  • Relock windows for Mandatory Commitments can only be taken in increments of 5, 10, 15 or 30 days, but may not be longer than the original lock window.
Relocks for Best Efforts Commitments can only be taken in increments of 15,30, 45, 60 & 75 days, but may not be longer than the original lock window.
  • Relocks are calculated on a worst-case pricing basis.
Once the requested relock period is established, comparisons for the same product and interest rate will be made between the most recent lock base price versus original lock base price.
If the Seller requests to relock an undelivered loan that has been expired or canceled for more than 30 days, the loan will be eligible to be relocked at current market without worst-case pricing comparison or relock fee.
Example #1
A loan is locked for 30 days at a base price of 101.00. The current comparable 30-day price is 101.50. The commitment expires and a relock is requested for additional 30 days at the original price since the current market price is higher.
Example #2
A loan is locked for 30 days at a base price of 101.00. The commitment expires and a 30-day relock is requested on the day after the original lock expiration. The current comparable 30-day price is 99.50. Since the current price is worse and more than a 31 -day extension, the loan is relocked for 30 days at current market.
Mandatory Bulks and Best Efforts:
All commitments delivered after lock expiration will accrue a late delivery fee as stated below:
Commitment Type Scenario Type Fee
Mandatory

Market Price Increases
Market Price Flat/Decreases

Full Market Move
No Fee

Best Efforts

Market Price Increases <
12.5 bps Market Price Increases > 12.5 bps
Market Price Flat/Decreases

12.5
Full market Move
No Fee

A seasoned loan is a loan for which the next payment due to PHH is two or more payments from the first payment due. The Rate Lock Desk will adjust pricing for a seasoned loan, and PHH will purchase loans that have one to two payments applied. Seasoned loans will only be considered if:
  • There are no more than two payments received from the first payment due date.
  • The loan has no transfer of servicing issues.
  • The loan has a current pay history with no delinquencies.
Any contingency, issue, process, or scenario not covered in this Guide should be considered outside of PHH policy and, therefore, subject to review by the Rate Lock Desk. Sellers are encouraged to call the Rate Lock Desk when they have questions or pricing issues with a loan. An agent will make every effort to resolve the issue, but if the issue cannot be resolved, the matter may be escalated to the Manager of the Rate Lock Desk.
Participation in a Mandatory or Best Efforts Commitment is permitted at PHH’s discretion. PHH reserves the right to limit the outstanding undelivered commitment amount available to the Seller. The Seller must be approved by PHH’s Credit Risk Group prior to taking out Mandatory or Best Effort Commitments. PHH may restrict or suspend the Seller’s future participation in a Mandatory or Best Effort Commitment at any time.
Unless otherwise stated by the Rate Lock Desk, the Seller must deliver eligible loans under the requested delivery commitment, conforming to the applicable loan program described in the commitment, with a loan amount that is within 2% (plus or minus) of the original committed amount.
To the extent the Seller’s delivery of eligible loans under a Mandatory Commitment has an aggregate outstanding principal balance (subject to the allowances stated above) less than the commitment amount, PHH may, at its discretion, charge the Seller a pair-off fee. It is the Seller’s responsibility to notify PHH if the Seller cannot deliver a loan under a Mandatory Commitment on time. PHH may, at its discretion, assess a fee in accordance with the Seller Agreement.
A Seller may request PHH to cancel or withdraw a loan. Once cancelled or withdrawn for any reason, the loan immediately ceases to be price or guideline protected. There can be no reinstatement of that specific loan number. Should the Seller request a loan reinstatement, and should PHH reinstate the loan, it will be re-registered and re-priced according to worst-case pricing policies. All extension fees remain with the loan. Cancellation may take place through the website or through the Rate Lock Desk. All pair off fees will be applied to all loans closed that have been delivered to PHH for review-. See section 4.7.5 for calculation of fees.
If a delivered loan is cancelled before commitment expiration, PHH may allow for a substitution. Any substitution must be within the applicable tolerance ranges shown in the Table below. If the substitution is not possible, PHH will apply the pair off fee to the individual commitment.
 
Substitution MND Tolerence

Original Loan Amount
Product Offering
Note Rate

2%
Same Product Description
< or >.25 movement

Substitution BE Tolerence

Original Loan Amount
Product Offering
Note Rate

5%
Same Product Description
< or >.25 movement


The Seller is responsible for monitoring and ensuring that only authorized personnel make requests for cancellation. PHH will automatically withdraw and inactivate loans that have been expired for greater than 45 days.
If any of the first four payments due on a Loan following the date of purchase and sale from the Seller by PHH becomes 90 days or more delinquent, the Seller shall, at PHH’s option, either repurchase such Loan at the repurchase price or indemnify PHH and its successors or assigns for any loss, expenses or costs (including attorneys’ fees) related to such EPD. For purposes of this policy, a Loan is considered 30 days delinquent if the payment has not been received and applied by the end of the day immediately preceding the loan’s next due date. Receipt of payments originally due prior to the date on which PHH purchases the Loan will not satisfy EPD requirements. If indemnification is allowed by PHH, the Seller will be required to return the premium and pay $3,000 for FHA insured and VA or USDA guaranteed loans and $1,500 for conventional Loans. In the event these funds do not cover all losses, the Seller will be invoiced for the deficiency and will promptly remit such amount to PHH. Indemnification is not an option for uninsured government loans or conventional loans for which the investor has demanded repurchase.
If a loan sold by the Seller to PHH is paid in full within 180 days following the date of purchase by PHH, the Seller will be charged a penalty fee equal to the greater of
  • or all loans pooled or sold, 1.15% the principal amount of the loan
  • For any loans not yet pooled or sold, the greater of (a) any premium paid in excess of par, or (b) 1.15% of the principal loan amount.
Pursuant to Fannie Mae Announcement SEL-2012-13 and Freddie Mac Bulletin 2012-11, for loans repurchased by the Seller, PHH reserves the right to require reimbursement by the Seller for any premium or buy up fee paid in connection with the purchase of the related repurchased Loan without regard to the 180 day limitation. PHH may exercise the right to terminate the Seller if the Seller is found to have an unacceptable number of loans that payoff within 365 days of purchase by PHH determined at PHH’s sole discretion.
For all commitment types, PHH will assess a pair off fee based on the below calculations.
Pair Off Fees
Commitment Type Scenario Type Fee
Mandatory

Market Price Increases
Market Price Flat/Decreases

Full Market Move
No Fee

Best Efforts

Market Price Increases < 12.5 bps
Market Price Increases > 12.5 bps
Market Price Flat/Decreases

12.5
Full market Move
No Fee

The Seller will be assessed a 5% late fee on any outstanding payments due PHH that are not received by PHH within 30 days of the invoice date. An additional 5% late fee will be charged for each subsequent 30 days of non-receipt. In the instance that a Seller disagrees with the invoice, the Seller must submit a written notice stating its concern to PHH within 15 days of the initial invoice date. If the dispute resolution exceeds 5 days and PHH determines that payment is still due, the Seller will have an additional 15 days to make the payment without incurring a late fee. Once PHH has made the final decision on the invoice, any aged billing greater than 90 days may result in suspension of the Seller’s ability to commit loans with PHH.
Rate negotiations are not available.
Upon the occurrence of any of the following events, the Seller shall immediately repurchase the related loan at the repurchase price and shall indemnify, save and hold harmless PHH and its officers, directors, agents, successors and assigns, from and against any and all resulting losses, damages, costs or expenses, including attorneys’ fees:
  • The Seller breaches any representation, warranty, covenant or agreement regarding a loan.
  • The Seller fails to provide all of the documentation required by PHH and/or fails to satisfy all other requirements of the Seller Agreement within 60 days following the Closing Date. Such date shall be extended to a date 90 days following the Closing Date for documents timely sent out for recording, but not yet returned due to delays solely within the applicable recording office.
  • With regard to FHA Loans, VA Loans, or USDA Loans, the Seller fails to submit for FHA Mortgage Insurance Certificate (MIC) or VA Loan Guaranty Certificate (LGC) or USDA Loan Note Guarantee (LNG) within 60 days following the date of the Mortgage Note.
  • With regard to FHA Loans, USDA Loans or VA loans, in the reasonable judgment of PHH, the related MIC, LNG or LGC cannot be obtained, or any required private mortgage insurance or guaranty, lapses, is rescinded, or a claim thereon is denied or not paid unless directly caused by the negligence of PHH.
  • PHH repurchases any loan previously conveyed, transferred, or assigned by PHH to any third party due to defects which existed prior to, or arose as a result of an occurrence on or before the Closing Date, or any third-party investor refuses to purchase a loan due to defects which existed prior to or arose as a result of an occurrence on or before the Closing Date.
  • The Loan File or Credit File contains any fraudulent document, or any misstatement or omission of material fact, regardless of whether such loan is delinquent.
  • Any mortgagor under a loan is in default of any obligation to pay taxes and/or insurance in accordance with the applicable provisions of the underlying mortgage and such default occurs within 90 days of the related Closing Date.
  • Any mortgagor under a loan files for protection, as a debtor, in any state or federal bankruptcy or insolvency proceeding within 90 days of the related Closing Date.
  • For any loan incapable of being repurchased due to inclusion in a Ginnie Mae pool, the Seller agrees to comply with all Ginnie Mae requirements and procedures to remedy or address all issues related to such loan, including any required repurchase of such loan in accordance with Ginnie Mae requirements.
Any contingency, issue, process, or scenario not covered in this Guide should be considered outside of PHH policy and, therefore, subject to review by the Rate Lock Desk. Sellers are encouraged to call the Rate Lock Desk when they have questions or pricing issues with a loan.
An agent will make every effort to resolve the issue, but if the issue cannot be resolved, the matter may be escalated to the Team Leads for resolution. If the resolution is not satisfactory, the problem can be escalated to the Manager of the Rate Lock Desk.
PHH offers delegated underwriting on all loan products. Sellers must have all applicable required designations and/or approval status required for all loan products delivered to PHH for purchase.
Sellers are responsible for ensuring that all loans submitted to PHH for loan purchase meet Agency guidelines, PHH product parameters, underwriting guidelines, and all applicable federal, state, and local laws and regulations.
PHH will purchase conventional loans within conforming loan balances that receive DU Approve/Eligible or LPA Accept recommendation and have been underwritten and approved by specific prior approved delegated underwriters.
PHH will purchase government loans within conforming loan balances that receive AUS Accept/Eligible recommendations or Refer/Eligible approved by a DE or SAR underwriter.
PHH will purchase USDA loans within conforming loan balances that are GUS approved (not manually underwritten).
Prior approval underwriting is not currently offered through PHH.