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

Computershare

Attn: PHH Team

1100 Virginia Drive, Ste 100

190-FTW 30

Fort Washington, PA 19304-3276

PHH Mortgage

Management Contact Information

Table 1-2
Name Title Email
Andy Peach SVP, Head of Correspondent Lending andy.peach@phhmortgage.com
Christian Stevens VP, Correspondent Sales Christian.Stevens@phhmortgage.com
Sean Marr VP, Correspondent Sales Sean.Marr@phhmortgage.com
Tony Millis VP, Correspondent Sales Tony.Millis@phhmortgage.com
Scott Loddeke VP, Correspondent Lending Scott.Loddeke@phhmortgage.com
Adam Weddell Director of Correspondent Adam.Weddell@phhmortgage.com
Amber Ponente Director of Originations Pricing Operations amber.ponente@phhmortgage.com

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 
  • Juneteenth
  • 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.

Available products are listed on the Products and Delivery Methods page, under the specific delivery channel.

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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PHH requires all Sellers to maintain a quality control plan within their own company to help guard against errors, omissions, and fraud. A general overview of the components of a sound QC plan are outlined below, however, detailed requirements of FHA, VA, Ginnie Mae, Fannie Mae, Freddie Mac and USDA must be followed by all Sellers originating and selling Loans under these products.

PHH's Quality Control (QC) monitoring includes Loan reviews that take place both prior to and after loan purchase. All exceptions will be identified as to the level of risk the issue represents.

Remediation is required for all significant findings. Audit findings and response instructions will be forwarded to the Seller by e-mail communication. E-mail distribution provides a means to confirm delivery and receipt of the request. Responses are required to be returned to PHH within 5 business days along with supporting documentation.

Responses to issues of lower or moderate risk may not be required but will be tracked and reported to the Seller.

A Loan that is determined not to meet Agency or PHH guidelines may require correction of the violation, indemnification, return of SRP, and/or reimbursement of losses or Loan repurchase. Additionally, issues not resolved within the required time frames could result in suspension or termination of the relationship.

Occurrences of fraud or misrepresentation will be immediately reported to any required regulatory Agency or investor. If there is sufficient information established to confirm a Seller participated in the misrepresentation, the business relationship with the Seller will be terminated immediately, including all Loans in the PHH pipeline from the Seller.

The Seller’s QC plan must be written and maintained to current guidelines. It should be administered independently of the origination process and contain all Agency, investor, and regulatory requirements.
The plan should clearly describe the following:
  • Sampling method, including a representative sampling method for third-party originations
  • Organizational structure
  • Qualifications of review staff
  • Plan for completing branch reviews
  • Pre- and post-closing review process
  • Timing of reviews
  • Method of reporting defects
  • Calculation of the defect rate
  • Process of distributing results to senior management
  • Evaluation of reports and method to address issues with corrective action
  • Requirement for Agency notification when necessary
  • Procedures for maintaining records of reports, Loan Files, and all related documents
It should also include a company’s record retention policy and provide for review and oversight of the audit functions.
For additional guidance regarding quality control reviews, refer to Fannie Mae’s QC Self- Assessment Worksheet.
An acceptable QC plan must include a process for auditing a sample of loans prior to loan closing to prevent closing loans with errors, misrepresentation, or insufficient documentation. The reviews must be completed by individuals who were not involved in the processing or underwriting of the loan. Sampling methodology should include loans with higher risk characteristics and the process should also insure a representative sample of loans from all products, branches, and personnel. Loans should be evaluated for data integrity, accuracy of credit and collateral information, and to ensure the loans meet all guideline parameters. Prefunding audit results should be included in tracking and trending reports along with post-closing results for executive review.
Post-closing reviews must comply with all Agency requirements concerning timing, loan selection, sample size, and document reverification. Audit processes must include a check of all credit documents, collateral documents, and closing documents for accuracy and compliance with eligibility criteria. The reviewer is also expected to validate the soundness of the underwriting decision and that all requirements of the underwriter or AUS were included in the Loan File.
Sellers must also provide for the following required reviews, as applicable:
  • Early payment defaults
  • Declined loans
  • Insuring process
  • Branch reviews
  • Servicing reviews
  • Vendor audits
  • QC process review of outsourced QC service provider, if applicable

Within the sampling methodology, loans must be selected on a random, targeted, and discretionary basis. Discretionary samples should include higher risk characteristics such as certain product types, high ratio, high LTV, areas of high delinquency, or areas of decreasing property values.

Targeted loans will be selected from loan categories meeting specific conditions (such as EPDs and EPOs).

Audits should include a reverification of all underwriting documents in the Credit File and a desk review of the appraisal. A field review of the appraisal must also be ordered as required by Agency guidelines. Other standard elements that the review should include are occupancy, underwriting decision, and loan approval conditions. The closing package must be reviewed for required documents, accuracy of information, and compliance with regulatory and Agency requirements. All exceptions should be documented and scored on a uniform rating system based on the associated risk.

An effective QC plan must include consistent reporting of all prefunding and post-closing results to senior management within 30 days after completion of the review and an appropriate method for implementing corrective action to the findings. Reports should include sample selection, loan level findings, trending, and management responses. Performance issues should be addressed based on the severity of the findings.
The Seller shall immediately report to PHH any material defects and/or misrepresentation or fraud relating to any Loan and/or any Person. The Seller must provide the PHH Correspondent Specialist (CS) the following information: PHH Loan Number, description of the defect, supporting documentation, and any other information, materials or documentation requested by PHH.
PHH requires Sellers to comply with all applicable regulatory requirements related to the origination and closing of Loans. Sellers should consult their own legal or compliance counsel to ensure that all loans sold to PHH are fully compliant with all applicable federal, state, and local laws and regulations.
In an effort to reduce the number of loan purchase suspensions, PHH is providing the recommendations below. This information is being provided to assist Sellers in providing documentation required for loan purchase and is not intended to provide legal or compliance counsel relating to local, state, or federal requirements. It should not be considered legal advice.
The inclusion of these documents does not release the Seller of its representations and warranties that all loans meet all regulatory and compliance requirements as they relate to mortgage lending.
The Seller represents, warrants, and covenants that all loans sold to PHH are in compliance with the following:
  • All applicable laws, rules, regulations, decrees, pronouncements, directives, orders, and contractual requirements with respect to the origination, closing, underwriting, processing, and servicing of each loan.
  • Any and all other applicable federal, state, county, municipal, or other laws, including, without limitation, those laws relating to truth in lending, real estate settlement procedures, consumer credit protection, usury limitations, fair housing, equal credit opportunity, collection practices, and real estate appraisals.
  • All applicable anti-money laundering laws and regulations including, but not limited to, the Bank Secrecy Act and its subsequent revisions and enhancements, the Customer Identification Program requirements of the USA Patriot Act, and the Office of Foreign Assets Control (OFAC) requirements (collectively the “Anti-Money Laundering Laws”).
The Seller further represents it has established an anti-money laundering compliance program as required by the applicable law and maintains, and will maintain, sufficient information to identify the applicable mortgagor for purposes of the Anti-Money Laundering Laws.
PHH will alert Sellers to important regulatory issues and update the Guide regarding regulatory changes related to mortgage lending. Seller should not rely on PHH to inform or advise Seller of these changes or the legal requirements applicable to the origination of Loans. Sellers represent and warrant to PHH that all loans sold are originated in accordance with applicable law.
All correspondent lenders are required to comply with the following CFPB rules. Loans delivered for purchase to PHH must contain evidence of compliance to the requirements specified under each rule or the loan will be suspended until corrected if applicable or will not be purchased.
  • Loan Originator Compensation
  • Escrow Rule for Higher Priced Mortgage Loans
  • Disclosure and Delivery Requirements for Copies of Appraisals and Other Written Valuations Under the Equal Credit Opportunity Act (Regulation B)
  • Ability to Repay and Qualified Mortgage Standards Under the Truth in Lending Act (Regulation Z)
  • High-Cost Mortgage and Homeownership Counseling Amendments to the Truth in Lending Act (Regulation Z)
  • Homeownership Counseling Amendments to the Real Estate Settlement Procedures Act (Regulation X)
  • Integrated Disclosure Rule Under the Truth in Lending Act (Regulation Z)
Additional information regarding these requirements and more are detailed within this chapter.
Federal and state laws and regulations require applicable disclosures to be provided to the borrower within prescribed time frames. It is the Seller’s sole responsibility to accurately prepare and deliver all applicable disclosures to the borrower within the required time frames.
The failure to provide timely required disclosures could result in significant penalties. Sellers determined to be in violation will be terminated by PHH.
Copies of all applicable disclosures must be included in the closed Loan File delivered for purchase.
PHH's commitment to fairness and equal opportunity lending is clear and unequivocal. PHH requires the application of fair and consistent origination and underwriting practices by the Seller as well. Discrimination based on race, color, sex, sexual orientation, disability, national or ethnic origin, marital or familial status, religion, or age is contrary to PHH's fundamental principles and commitments and is unlawful.
Seller covenants to treat all borrowers and prospective borrowers in a fair and consistent manner. All borrowers and prospective borrowers should receive the same level of service. Seller covenants to observe this commitment, in particular, in providing assistance to borrowers and prospective borrowers on whether or not to apply for credit, how best to qualify for credit, how to resolve any issues relating to creditworthiness, and other aspects of the Loan extension process.
Seller covenants to underwrite all the properties offered to secure the borrowers' Loans based on property type, occupancy status, and the appraised value, and not based on the fact that a property is located in an area with a predominant racial or ethnic population.
All loans sold to PHH must be in compliance with the Appraiser Independence Requirements (AIR).
Sellers must provide their internal policies and procedures regarding the ordering of the appraisals and appraisal management when applying for approval.
PHH will allow the transfer of an appraisal on conventional loans as long as the file includes the following:
  • First generation appraisal
  • Successful FNMA and FHLMC Submission Summary Report (SSR)
  • Appraisal delivery certificate from transferring lender evidencing delivery of appraisal to the borrower. If appraisal was sent electronically, the borrower may forward the email they received when the appraisal was delivered.
  • Appraisal transfer letter that includes the following:
    • ust be on the letterhead of the original transferring financial institution
    • Current Date
    • Borrower Name
    • Property Address
    • A statement transferring the ownership of the appraisal to the Seller
    • The following statement: “(Original Transferring Financial Institution) certifies and warrants that the reference appraisal was prepared in accordance with, and is compliant with, the Appraisal Independence Requirements (AIR), Truth in Lending regulations, and all applicable laws.”
    • Signature of an Officer of the transferring financial institution that is not in Loan Production. (Note: Loan Officers, LO Assistants etc. are not eligible to sign the transfer letter)
    • Compliancy of ordering and processing according to, but not limited to, Dodd Frank, FIRREA, Appraiser Independence Requirements, and Consumer Protection Acts; and 
    • Assurance of most recent complete appraisal assignment (i.e., 1004, 1025, 1073 etc., but not 1004D, 1075, 2000, 2000A, 2070, 2075, 2095 or any “Subject To” or Recertification of Value assignments)
PHH requires an Appraisal Acknowledgement Form on all loans with an appraisal, regardless of product type.
The Appraisal Acknowledgement Form must contain the following:
  • Borrower’s name
  • Property address
  • Seller’s name
  • Acknowledgement that the borrower either received all appraisal reports at least three business days prior to loan closing
OR
  • Acknowledgement that the borrower elected to waive his right to receive all appraisal reports at least three business days prior to loan closing. If this option is selected, evidence that all appraisals were given to the borrower prior to or at the closing is required.
The form must be signed and dated by all borrowers on or before the date of the Mortgage Note.
Note: In all loans submitted to PHH for purchase, evidence all appraisals were given to the borrower is required.
Sellers must maintain an Anti-Money Laundering (AML) program which must be in writing and include, at a minimum the following:
  • Policies, procedures, and internal controls reasonably designed to prevent, detect, and report potential money laundering and other suspicious activity
  • The designation of an AML compliance officer
  • Ongoing AML employee training
  • Independent testing of the Seller’s AML program
For additional guidance on AML program requirements, refer to the FFIEC BSA Examination Manual.
Sellers are required to comply with the Bank Secrecy Act and are required to file Suspicious Activity Reports (SARs) with FinCEN in accordance with this regulation.
PHH supports the expansion of fair and equitable home ownership opportunities and opposes predatory lending. We are committed to upholding the standards of fair and responsible lending in all aspects of our business practice. Our commitment emphasizes product choice, fair pricing and credit terms with clear disclosure.
PHH requires that all borrowers be treated fairly and equitably through all channels, whether through retail, seller or warehouse. PHH requires adherence to applicable federal state and local laws, statutes, regulations, commentary and principles, including but not limited to the items more fully described below.

Predatory Lending Description

PHH requires that each Seller warrant that no form of predatory lending has been used in connection with the origination of any Loan. For purposes herein, “predatory lending” includes, but is not limited to, any deceptive and/or abusive lending practices that are not in the best interest of the borrower. This includes, but is not limited to, any one or more of the following practices:
  • Making loans based on borrower’s equity without regard to the proper underwriting of the borrower’s payment ability;
  • Making loans that unreasonably jeopardize the borrower’s equity;
  • Frequent refinancing of loans with fees that can strip the equity from a borrower and which simply generate fee income with no benefit to a borrower;
  • Using pricing terms that far exceed the true risk and cost of making the loan;
  • Including in the loan unearned or otherwise unwarranted fees for services;
  • Making it difficult for borrowers to reduce their indebtedness by adding unreasonably restrictive loan terms and structures; or
  • Targeting customers who are less financially sophisticated or otherwise are vulnerable to abusive practices.
The Seller and its third-party originators may not engage in any of the following practices with respect to loans purchased or to be purchased by PHH:
  • Encouraging a borrower to default on an existing loan in connection with the refinance of all or part of the existing loan.
  • Financing single premium credit life, disability or unemployment insurance products with the proceeds of the Loan.
  • Refinancing of a Special Subsidized Mortgage. A Special Subsidized Mortgage means a residential Loan that is originated or subsidized by or through a state, local or tribal government or nonprofit organization and that in some circumstances does not have to be completely repaid or requires only partial payments be made. Examples include, but not limited to, a mortgage granted by organizations such as Habitat for Humanity or a local housing authority.
  • Contracting for a prepayment penalty on any product or loan unless specifically allowed within PHH guidelines.
  • Executing documents to evidence or secure the loan which contain an arbitration clause.
NOTE: The lender’s agreement with the borrower must ensure that terms requiring arbitration are not included in the agreement and must also ensure that the agreement(s) do not bar the consumer from bringing a claim in court.
  • Payments to a home improvement contractor from the proceeds of the Loan other than by a check made payable either to the consumer, or jointly to the consumer and home improvement contractor, or through an independent third-party escrow agent.
  • Payment of Loan payments in advance from the loan proceeds.
  • Contracting for an increase in the interest rate upon default of the loan at a level not commensurate with risk mitigation.
For correspondent loans, it is necessary that Seller engage in responsible lending that provides benefit to the borrower and the loan contains verification and evidence of the borrower’s ability to repay.
  • The Seller must use best efforts to ensure that each loan offered to a borrower is consistent with his or her needs, objectives and financial situation.
  • Each Loan, the proceeds of which have been used to refinance a previous Loan, offers a documented, demonstrable, tangible net economic benefit to the borrower. The Seller must provide any state-specific documentation, such as, but not limited to, Net Tangible Benefit Worksheet, as required by state or local law.
  • Appropriate assessment and documentation must be performed of the borrowers’ ability to repay each Loan in accordance with its terms. The borrowers must be provided sufficient and accurate information concerning each Loan's terms, costs, risks and benefits, including but not limited to, disclosure of:
    • The existence of a prepayment penalty, if applicable, prior to closing
    • Disclosure on products containing a prepayment penalty of the availability of similar products with no prepayment penalty
    • On limited documentation products, disclosure of the availability of a lower interest rate in exchange for higher levels of documentation
    • Total loan compensation of each Loan, including compensation to third party originators, must be structured to avoid providing any incentive to originate a loan with predatory or abusive characteristics

The maximum points and fees applicable to a Qualified Mortgage vary based upon the loan amount. In addition, all dollar amounts, including loan amounts, will be adjusted for inflation annually on January 1 by the CFPB. All Loans submitted for purchase must pass the qualified mortgage points and fees test, as well as the associated ability to repay provisions.

PHH will require a fully completed “points and fees” detail form on all files submitted for purchase. The Seller can provide this information by including one of the following in the Loan File:

  • PHH Fee Details Form as published on the PHH Capital Website. This is the preferred form, but PHH will also accept as alternative documentation;
  • Ellie Mae’s Mavent Compliance Report with Expanded Fee Details

NOTE: In order for PHH to accept the Mavent Compliance Report as an alternate to the PHH Fee Details Form, the Mavent Compliance Report must include the Expanded Fee Details.

  • A review of the vendor forms to ensure they contain the loan level data required to complete our pre-purchase review. If the loan-level data is not sufficient, it may delay the purchase of the Loan by PHH.

NOTE: We are not endorsing or approving the results of any vendor’s compliance screening, nor will we rely on any vendor’s compliance screening in lieu of our prepurchase review.

  • Similar points and fees forms (i.e. one generated from a LOS system) provided the form contains all loan level data required to complete our pre-purchase review. If the loan level data is not sufficient, it may delay the purchase of the Loan by PHH.

Points and Fees Thresholds – 2021

The applicable points and fees thresholds for 2021 are listed below: Limits are effective for loan closings on or after 01/01/2021.

Note Amount Points and Fees Threshold
Greater than or equal to $114,847 3% of Total Loan Amount
$66,908 but less than $114,847 $3,445
$22,969 but less than $66,908 5% of Total Loan Amount
$14,356 but less than $22,969 $1,148
<=$14,356 8% of Total Loan Amount

Points-and-Fees Calculation

The points-and-fees calculation is the same as that used in the HOEPA points-andfees calculation.

To calculate the points-and-fees, a creditor will add together the amounts paid in connection with the transaction in six categories of charges:

  • Finance Charge – In general, all items included in the finance charge under 1026.5(a) and (b) will be included, except the following:

    • Interest or the time-price differential
    • Mortgage Insurance Premiums

      • For federal or state government sponsored MIPs, exclude up-front and annual FHA premiums, VA funding fees, and USDA guarantee fees
      • For PMI, exclude monthly or annual PMI premiums. Can also exclude up-front PMI premium if it is refundable on a prorated basis and a refund is automatically issued upon loan satisfaction. However, if the premium can be excluded, you must still include any portion exceeding the up-front MIP for FHA Loans.
    • Bona Fide Third-Party Charges - Cannot be retained by the creditor, loan originator, or an affiliate of either
    • Bona Fide Discount Points

      • Exclude up to 2 bona fide discount points if the interest rate before the discount doesn’t exceed the APOR by more than 1 percentage point; or
      • Exclude up to 1 bona fide discount point if the interest rate before the discount doesn’t exceed the APOR by more than 2 percentage points.
  • Loan Originator Compensation – Compensation paid directly or indirectly by a consumer or creditor to a loan originator that is not an employee of the creditor or mortgage broker must be included.

    • Compensation paid by the creditor to its own employee loan originator on a transaction can be excluded;
    • Compensation paid by a mortgage broker to its own employee loan originator on a transaction can be excluded;
    • Compensation paid by a consumer directly to a mortgage broker can be excluded (so long as the amount has already been included in the points-and-fees under the finance charge);
    • Compensation paid by a creditor to a mortgage broker that is not its own employee is to be included
  • Real Estate-Related Fees – The following categories of charges are excluded if (i) the charge is reasonable; (ii) the creditor receives no direct or indirect compensation; and (iii) the charge is not paid to an affiliate of the creditor:

    • Title related fees
    • Loan-related documentation preparation fees
    • Notary and credit-report fees
    • Property appraisal or inspection fees
    • Amounts paid into escrow or trustee accounts that are not otherwise included in the finance charge
  • Premiums for credit insurance; credit property insurance; other life, accident, health or loss - of-income insurance where the creditor is beneficiary; or debt cancellation or suspension coverage payments

    • o Do not include these charges if they are paid after consummation of the Loan
    • For purposes of this provision, credit property insurance is defined as insurance that protects the creditor’s interest in the property and d
  • Maximum Prepayment Penalty

    NOTE – PHH does not purchase loans that contain a prepayment penalty.

  • Prepayment Penalty Paid in a Refinance – If a creditor is refinancing a loan that it or its affiliate currently holds or services, then any penalties charged for prepaying the previous loan must be included.

HPML Requirements Loans that exceed points and fee limits at the time of loan disbursement are not eligible for purchase by PHH.

QM-Safe Harbor and QM-Rebuttal Presumption Loans: A qualified mortgage (QM) loan will receive either a safe harbor or rebuttable presumption status, as calculated below:

Conventional / VA FHA

Safe Harbor

APR<= APOR + 1.50%

Safe Harbor

APR <= APOR + Annual MIP + 1.15%

Rebuttable Presumption

APR > APOR + 1.50%

Rebuttable Presumption

APR > APOR + Annual MIP + 1.15%

QM Safe Harbor (QM – Non HPML) loans, including QM Safe Harbor Agency Loans, FHA Loans, and VA Loans using the Price Based Limit.

QM Rebuttable Presumption (QM – HPML) loans are subject to the following:

  • Income and assets must be fully documented
  • Maximum DTI is 45%
  • Refer to the Product Summaries for detailed requirements
  • If a Loan is HPML, it receives a rebuttable presumption status
A general definition of fraud includes the following:
  • Intentional abuse of truth in order to induce another to part with something of value or to surrender a legal right
  • An act of deceiving or misrepresenting
Suspected fraud will be referred to PHH’s Credit and Operational Risk/Fraud Department. A review of the loan will be conducted to determine the extent of the fraud or misrepresentation and the source.
Loan Files with confirmed fraud or misrepresentation are not eligible for purchase by PHH. If the fraud or misrepresentation is discovered after loan purchase, the Seller will be required to repurchase the loan.
In the event sufficient information is established to confirm a Seller’s participation in the misrepresentation, the business relationship with the Seller will be terminated. PHH shall satisfy its obligation to notify the applicable authorities.
PHH will not purchase any loan legally classified as high-cost or predatory under federal or state laws.
A high-cost test will be performed on all loans on a pre-purchase basis for compliance with the following:
  • Federal law (HOEPA Section 32 of the Truth in Lending Act)
  • Investor/Agency requirements
  • State law
  • City/village/municipality code
  • County ordinance

Note: PHH will not purchase any loan, regardless of occupancy type, that exceeds Freddie Mac’s 5% points and fees test threshold.


Any loan determined to be a high-cost loan will be denied for purchase. Under no circumstances will PHH recognize a post-closing refund to the borrower as cure of a high-cost loan.
Sellers are responsible for ensuring that all loans delivered to PHH are in compliance with all applicable laws and regulations noted above. In the event a loan is inadvertently purchased by PHH that is later determined to be a high-cost loan, that loan will be subject to immediate repurchase.
It is the responsibility of the Seller to consult with its own legal counsel to develop internal policies and procedures necessary to prevent the closing of a high-cost loan.
Determination of High-Cost Mortgage
A high-cost mortgage is any consumer credit transaction, whether closed-end or open-end, that is secured by the consumer’s principal dwelling in which:
  • The annual percentage rate applicable to the transaction will exceed the average prime offer rate (APOR), as defined in § 1026.35(a)(2), for a comparable transaction by more than:
    • 6.5 percentage points for a first-lien transaction;
    • 8.5 percentage points for a first-lien transaction if the dwelling is personal property and the loan amount is less than $50,000; or
    • 8.5 percentage points for a subordinate-lien transaction; or
  • The transaction’s total points and fees exceed:
    • 5 percent of the total loan amount for a transaction with a loan amount of $21,549 or more; the $21,549 figure shall be adjusted annually on January 1 by the annual percentage change in the Consumer Price Index that was reported on the preceding June 1; or
    • The lesser of 8 percent of the total loan amount or $1,077 for a transaction with a loan amount of less than $21,549; the $1,077 and $21,549 figures shall be adjusted annually on January 1 by the annual percentage change in the Consumer Price Index that was reported on the preceding June 1.
A higher-priced mortgage loan (HPML) is a Loan secured by a first lien on the borrower’s principal dwelling with an APR that exceeds the APOR for a comparable transaction as of the date the interest rate is locked by a certain percentage, based on the type and size of loan:
  • If the loan is a jumbo mortgage, the APR may not exceed the APOR by 2.5 or more percentage points.
  • If the loan is a first lien, but not a jumbo mortgage, the APR may not exceed the APOR by 1.5 or more percentage points.
HPML loans are eligible for purchase by PHH when the following requirements have been met:
When an appraisal is required for the loan program, it must be completed by a certified or licensed appraiser who conducts a physical inspection of the interior of the collateral property.
  • • Conventional Loans –
    • Escrow accounts are required to be set up and maintained for a minimum of 5 years
    • Loans must pass FNMA points and fees test, ATR/QM and any applicable state high costs tests
  • • FHA loans –
    • Escrow accounts for the life of the loan are mandatory
    • Not permitted for Non-credit qualifying streamline refinance. If a NCQ loan is determined to be a HPML loan, it can be converted to a Credit Qualifying Streamline.
Higher Priced Mortgage Loans with the following attributes are not eligible for purchase:
  • Loans with Prepayment Penalties
  • Adjustable Rate Mortgages with an initial repayment period less than 7 years
  • Loans with a Balloon Term with a 5 year reset period
The Seller’s Loan File must include documentary evidence establishing the date that the borrower’s interest rate was locked. Acceptable documents, in effect at time of closing, include the following:
  • An unexpired lock agreement between the originating Seller and the borrower
  • A Seller-generated unexpired lock confirmation
  • Higher Priced Covered Transaction (Conventional Loans)
A Higher Priced Covered Transaction is a covered transaction with an annual percentage rate that exceeds the average prime offer rate for a comparable transaction as of the date the interest rate is set by 1.5 or more percentage points for a first-lien covered transaction, other than a qualified mortgage under paragraph (e)(5) or (f) of § 1026.43; by 3.5 or more percentage points for a first - lien covered transaction that is a qualified mortgage under paragraph (e)(5) or (f) of § 1026.43; or by 3.5 or more percentage points for a subordinate-lien covered transaction.
NOTE: PHH does not purchase subordinate lien loans.
PHH will not purchase loans that are not in compliance with the requirements of the Real Estate Settlement Procedure Act (RESPA).
RESPA applies to a federally related Loan. A federally related Loan refers to almost every loan secured by a lien on residential real property designed principally for occupancy as a one to four unit dwelling and made by a regulated lender, a government assisted lender, a lender with intent to sell to an Agency, or a truth in lending creditor.
RESPA related requirements include but are not limited to:
  • Proper identification of affiliates and use of the AFBA disclosure.
  • Aggregate Escrow Account Analysis and related disclosures.
Loans closed during the right of redemption period following a foreclosure are not eligible for purchase by PHH.
Under Secure and Fair Enforcement (S.A.F.E.) Act requirements, the Seller is responsible to ensure that all loans delivered to PHH will be audited pre-purchase for licensing and registration compliance of the Seller and the mortgage loan originator (MLO).
Sellers must provide the following information on all loans:
  • A completed initial 1003 or redesigned URLA signed and dated by the MLO.
  • The correct NMLS ID for both the Company and the MLO who signed the application:
Note: PHH requires the main company ID and not the branch ID.
  • In the event there are multiple applications in the Loan File signed by different mortgage loan originators, a review will be conducted for each MLO.
  • For FHA loans, the correct NMLS IDs for the Company and the mortgage loan originator (MLO) must be entered in the appropriate places in FHA Connection.
PHH and its Sellers are obligated to comply with the Truth in Lending Act (TILA). The purpose of this regulation is to:
  • Promote the informed use of consumer credit by requiring disclosures about the terms and cost associated with the credit
  • Ensure that consumers are provided with greater and more timely information on the nature and costs of the residential real estate settlement process
  • Effect certain changes in the settlement process for residential real estate that will result in more effective advance disclosure to home buyers and sellers of settlement costs
PHH will not purchase loans that are not in compliance with the Truth in Lending Act.
Common Prepaid Finance Charges
This is not an all-inclusive list of prepaid finance charges; rather, this is a list of charges that should be included that are frequently omitted:
  • Courier/wire/delivery/messenger fee
  • Attorney/settlement/closing/escrow fee
  • Copy fee
  • Subordination/subordination agreement fee
  • Attendance fee
  • Service fee
  • Assignment fee
  • Condo questionnaire fee
  • Closing protection letter fee
  • Document preparation/document review fee in Texas to the attorney
PHH reviews loans both pre- and post-purchase to ensure compliance with applicable federal and state laws and regulations.
PHH considers the disclosure of the finance charge amount accurate if it is understated by no more than $100 on purchases and by no more than $35 on rescindable transactions, or if it is overstated.
If a review of the Loan File determines that certain fees were not disclosed as finance charges and the disclosure varies from the actual finance charges by more than $100 or $35 if rescindable, PHH will require that the loan be remedied.
Purchase Transaction:
  • The under-disclosed amount must be refunded to the borrower—a copy of the check to the borrower will be required.
  • A post consummation Closing Disclosure disclosing a new preparation date—no changes to the actual figures, just the preparation date.
  • A copy of the letter to the borrower explaining the reason for the refund.
  • Proof of delivery of all of the above to the borrower—overnight carrier’s tracking information that confirms delivery or a USPS Confirmation of Receipt slip.
Refinance Transaction:
  • The under-disclosed amount must be refunded to the borrower—a copy of the check to the borrower will be required.
  • A post consummation Closing Disclosure disclosing a new preparation date—no changes to the actual figures, just the preparation date.
  • Rescission must be reopened—provide a new Right to Cancel to each borrower.
  • Wait three days or more after the borrower receives the Right to Cancel, post consummation CD, and refund for the rescission period to end. PHH will not purchase a loan with an open rescission period.
  • A copy of the letter to the borrower explaining the reason for the refund.
  • Proof of delivery of all of the above to the borrower—overnight carrier’s tracking information that confirms delivery or a USPS Confirmation of Receipt slip.
Effective with applications dated on or after October 3, 2015, the Initial TIL and GFE are replaced by the Loan Estimate, and the Final TIL and HUD-1 Settlement Statement are replaced by the Closing Disclosure. Any covered loan submitted to PHH for purchase must include the Loan Estimate and Closing Disclosure as described below.
The TILA-RESPA rule applies to most closed-end mortgage transactions secured by real property, including construction-only loans and lot (vacant land) loans, but does not apply to
  • Home equity lines of credit (HELOCs)
  • Reverse mortgages
  • Chattel-dwelling loans, such as a loan secured by a mobile home or other dwelling that is not attached to real property
  • Detailed information on these disclosures is available in TILA-RESPA integrated disclosure guides published by the CFPB on their website.
The Home Loan Toolkit, previously known as the Special Information Booklet, must be provided at or within three business days of application for purchase transactions. The Seller is expected to comply with all requirements of the rule.
The Loan Estimate must be provided to the borrower, or placed in the mail, no later than three business days after receipt of an application. In this context, a business day is a day on which the Seller’s offices are open to the public for carrying out substantially all of its business functions. For purposes of this rule, an application is considered received when the borrower has provided all the following information:
  • Borrower’s name
  • Borrower’s income
  • Borrower’s Social Security number to obtain a credit report
  • Address of the subject property
  • Estimate of the subject property’s value
  • Amount of the loan applied for
When there is a changed circumstance after the Loan Estimate has been provided, the Loan Estimate must be revised within three business days of notification of the event. A revised Loan Estimate must be received by the borrower no later than four business days before consummation, which is defined by state law. Sellers should consult their legal counsel regarding the definition of consummation. The Loan Estimate may not be revised to correct technical errors, miscalculations, or under-estimated charges. The initial Loan Estimate and any subsequent revisions must be delivered to the borrower within the time frames mandated by the rule, with evidence of timeline compliance included in the Loan File.
Before the Loan Estimate is provided, the following actions may not take place:
  • No documents used to verify the borrower’s application information may be required.
  • No fees may be imposed on the borrower (except a bona fide fee for obtaining a credit report) before the borrower indicates his intent to proceed with the transaction.
  • No other written estimates of terms or costs may be provided without a written statement that these may change.
A changed circumstance is defined as one of the following:
  • An extraordinary event beyond the control of any interested party or other unexpected event specific to the borrower or transaction
  • Information specific to the borrower or transaction that the lender relied upon when providing the Loan Estimate that was inaccurate or changed after the disclosures were provided. This includes changes to the borrower’s creditworthiness based on verifications received, or changes to the value of the subject property
  • New information specific to the borrower or transaction that the lender did not rely on when providing the Loan Estimate
The lender must provide a revised Loan Estimate within 3 business days if any of the following occur:
  • The borrower requests changes to the terms or charges that effect the initial estimate
  • The loan is locked after the initial Loan Estimate is provided
  • The borrower does not indicate intent to proceed until more than 10 business days have passed after the initial Loan Estimate was delivered or placed in the mail
  • If the transaction involves new construction and settlement will not occur within 60 days
A revised Loan Estimate may not be provided on or after the date the lender provides the Closing Disclosure. For the purpose of a revised Loan Estimate, business day is defined as all calendar days except Sundays and federal legal holidays.
The Closing Disclosure must be received by the borrower no later than three business days before consummation. In this context, business day is defined as all calendar days except Sundays and federal legal holidays. If mailed or sent electronically, the Closing Disclosure may be considered received three business days after sending. Loan closing may not occur during the three days following receipt of the disclosure.
A corrected Closing Disclosure, with another three-day waiting period, must be provided for the following:
  • Increases to the loan’s APR of at least 0.125% for fixed rate loans or 0.250% for ARM loans
  • Changes to the loan product
  • Addition of a prepayment penalty
Note: PHH does not purchase loans with a prepayment penalty.
Other changes necessitating a corrected Closing Disclosure may not require an additional waiting period. The Closing Disclosure and any subsequent revisions must be delivered to the borrower within the time frames mandated by the rule, with evidence of compliance included in the Loan File.
The actual charges paid by or imposed on the consumer in the Closing Disclosure must be equal to or less than the estimated charges originally provided in the Loan Estimate. There is a 10% cumulative tolerance for variations on the following items:
  • Recording fees
  • Charges for third-party services where the fee is not paid to the lender or its affiliate
  • Charges for which the borrower was permitted to shop, and he selected a third-party service provider from the lender’s written list of service providers
The following charges may change without limitation:
  • Prepaid interest, property insurance premiums, and amounts placed into an escrow, impound, reserve, or similar account
  • Charges for third-party services not required by the lender
  • Charges for which the borrower was permitted to shop, and he selected a third-party service provider that was NOT included on the lender’s written list of service providers
The following charges may not change at all, except under changed circumstances where a revised Loan Estimate was provided to the borrower:
  • Fees paid to the lender, mortgage broker, or an affiliate of either
  • Transfer taxes
  • Fees paid to an unaffiliated third party if the lender did not permit the borrower to shop for a third-party service provider
If the amounts paid by the borrower at closing exceed the amounts disclosed on the Loan Estimate beyond the above-stated tolerances, the Seller must refund the excess to the borrower and provide a revised Closing Disclosure, no later than 60 calendar days after consummation.
For charges subject to zero tolerance, any amount charged beyond the amount disclosed on the Loan Estimate must be refunded. For those charges subject to a 10% cumulative tolerance, to the extent the total sum of the charges added together exceeds the sum of all such charges disclosed on the Loan Estimate by more than 10%, the difference must be refunded.
All Loan Estimates and Closing Disclosures must be included in the Loan File when submitted for purchase. They will be reviewed and compared, and any corrections made must be supported by documentation. If errors are found that were not corrected, the loan will be suspended until the Seller makes the appropriate refund and supplies documentation. If more than 60 days pass after consummation of a loan found to have an uncorrected error, that loan may become ineligible for purchase. If the required three-day waiting period before closing was violated, the loan may be ineligible for purchase. Sellers are not to exhibit a pattern of borrowers waiving or modifying the waiting period due to personal emergencies.
Refer to the Document Delivery Checklist. Underwriting and closed Loan Files may be uploaded via the Correspondent Portal or via Investor Connect.
Final Document Transmittal Form

Please do not mail the documents. We appreciate your support of a paperless environment.

To upload in TPO Connect:

  1. Open the loan via your pipeline
  2. Under Documents, scroll down to the document placeholder shown in the below chart.
  3. If the document placeholder listed is not available, please click “+Add Document”, then scroll until you locate the document placeholder. Check the box next to the placeholder to add, then click Save.
    13-2-pic.png
  4. Click on “Browse for Files” or “Drag and Drop files here” to attach the document.
  5. Exit the loan.
    Final Document Document Placeholder
    Mortgage Insurance Certificate (MIC) FHA Mortgage Insurance Certificate
    Loan Guarantee Certificate (LGC) VA Loan Guarantee Certificate
    USDA Loan Note Guarantee USDA Loan Note Guarantee
    Title Policy Final Title Insurance Policy
    Recorded Mortgage/DOT Recorded Security Instrument

    If you have any questions, please contact your Correspondent Specialist or the Final Doc Team at PHHCLPost-Funding@phhmortgage.com.

As used in the Seller Agreement and this Guide, the terms herein shall have the following meanings, unless the context requires otherwise:
With respect to any loan, those mortgage servicing practices including scheduled and unscheduled advances, collection, default servicing and foreclosure procedures that are:
  • Prescribed by the FHA, with respect to any FHA insured loans, as set forth in the applicable FHA Regulations
  • Of prudent mortgage lending institutions that service Loans of the same type and quality as such Loan in the jurisdiction where the related property is located
  • That comply with applicable federal, state and local law
  • That are in accordance with the terms of the Seller Agreement, applicable requirements and the respective loan documents, including the Mortgage, Mortgage Note and Loan File
Acceptable requirements include:
  • All contractual obligations of a party, including, but not limited to, those contractual obligations contained in the Seller Agreement, in any agreement with any insurer or investor, and in the loan documents, including the mortgage, Mortgage Note and Loan File.
  • All federal, state and local legal and regulatory requirements (including statutes, rules, regulations and ordinances), as may be amended from time to time, including, but not limited to, the following:
    • Truth-in-Lending Act (TILA)
    • Equal Credit Opportunity Act (ECOA)
    • Home Mortgage Disclosure Act
    • Civil Rights Act of 1968
    • Fair Housing Act
    • Real Estate Settlement Procedures Act (RESPA)
    • Fair Credit Reporting Act
    • Flood Disaster Protection Act
    • Financial Institutions Reform, Recovery and Enforcement Act (FIRREA)
    • Financial Services Modernization Act (Gramm-Leach-Bliley Act or GLBA)
    • Dodd-Frank Wall Street Reform and Consumer Protection Act
    • Home Ownership and Equity Protection Act of 1994 (HOEPA)
  • All other applicable requirements and guidelines of each governmental Agency, board, commission, instrumentality and other governmental body or office applicable to, and having jurisdiction over a party, including, but not limited to, those of any insurer.
  • All other applicable final judicial and administrative judgments, orders, stipulations, awards, writs and injunctions applicable to a party.
The rate at which interest is calculated.
Any state or federal agency that buys or insures loans including, without limitation, Federal Housing Administration (FHA), Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), Government National Mortgage Association (Ginnie Mae), Veterans Administration (VA), Department of Housing and Urban Development (HUD), United States Department of Agriculture (USDA), or any successor thereto.
The Seller loan purchase agreement between PHH and the Seller regarding the sale of loans to PHH by Seller, and all exhibits, schedules and addendums.
An attachment to a legal document that is used to insert language or signatures when there is no space for them on the document itself. An allonge is frequently used to add endorsements to the Mortgage Note.
All applicable (1) federal, state, and local legal requirements (including statutes, rules, regulations, and ordinances), including but not limited to usury, truth-in-lending, real estate settlement, consumer credit, equal credit opportunity, fair housing, disclosure, anti- predatory or abusive lending, or unfair and deceptive acts and practices laws; (2) requirements and guidelines of each governmental agency, board, commission, instrumentality, and other governmental body or office having jurisdiction, including without limitation, the Consumer Financial Protection Bureau; and (3) judicial and administrative judgments, orders, stipulations, awards, writs, and injunctions.
General term for automated underwriting tools acceptable to PHH including Freddie Mac’s Loan Prospector® and Fannie Mae’s Desktop Underwriter®.
A commitment requiring Seller to use its best efforts to sell loans to PHH as set forth in such Best Efforts Commitment. A Best Efforts Commitment with respect to a locked loan shall become a Mandatory Commitment with respect to such loan on the related Closing Date.
Notwithstanding the foregoing, any duty or obligation on the part of PHH to purchase a loan under a Best Efforts Commitment shall be conditioned upon such loan complying with all of the terms and conditions of the commitment, the Seller Agreement, this Guide, and all of PHH’s documentation, underwriting, and product requirements in effect as of the purchase date. In no event shall PHH be required to purchase any loan that does not fully comply with same.
Closing date is the date set forth in the commitment letter, on which PHH will purchase and the Seller will sell the loans identified therein.
The final disclosure provided by Seller pursuant to Section 8.23 of this Guide.
The United States Securities and Exchange Commission.
The percentage of a Seller’s default rate on its loans, compared to the local market area and to the national market, as calculated by the Federal Housing Administration (FHA).
Any confidential or proprietary information, including, but not limited to:
  • Information, whether reduced to writing or not, disclosed by a party or the party’s agents, contractors, representatives and/or affiliates relating to such party’s product development strategy and activity, corporate assessments and strategic plans, customer lists, financial and statistical information (past, current and future), accounting information, hardware, firmware, software (including, but not limited to, object code and source code), systems, processes, formulae, inventions, product specifications, data, know-how, graphs, samples, research and development (past, current and future), distribution methods (past, current and future), customer requirements (current and future), price lists, market studies, business plans, marketing plans, marketing methods, discoveries, policies, guidelines, procedures, practices, disputes or litigation.
  • Other confidential, proprietary or trade secret information of a party that is identified in writing (including, but not limited to, electronically) as such at the time of its disclosure; all other confidential, proprietary or trade secret information of the party, which a reasonable person employed in the mortgage industry would recognize as such or is recognized as such under Applicable Requirements.
  • Customer Information, including, but not limited to, any nonpublic personal information pertaining to any applicant or mortgagor obtained by a party in connection with the transactions contemplated by the Seller Agreement, regardless of whether such information is communicated to the other party.
  • Compilations, Notes or summaries that contain or reflect confidential Information.
  • The Seller Agreement.
A residential Loan that conforms to Fannie Mae, Freddie Mac or private investor guidelines with an original loan term not exceeding 360 months.
A residential Loan, other than an FHA Loan, VA Loan, or USDA Loan, eligible for purchase by Fannie Mae, Freddie Mac, or a private investor, with a loan term not exceeding 360 months.
An approved mortgage that the Seller, as a correspondent, has entered into an agreement to sell to PHH.
Rules and restrictions governing the use of property.
All documentation required by PHH for underwriting review as established by this Guide and PHH’s underwriting guidelines.
Any customer of a party, including, but not limited to, any person who
  • applies to a party or an affiliate thereof, either directly or indirectly, for a financial product or service, including a loan applicant;
  • has obtained any financial product or service from a party or an affiliate thereof; or
  • has a loan serviced or subserviced by a party or an affiliate thereof.
Any personally identifiable information or records in any form (written, electronic, or otherwise) relating to a customer, including, but not limited to
  • a customer’s name, address, telephone number, loan number, loan payment history, delinquency status, insurance carrier or payment information, tax amount or payment information;
  • the fact that a customer has a relationship with a party; and
  • any other personally identifiable information.
DBRS, Inc. or its successor in interest.

Loans that are originated, underwritten, and closed by the Seller.

A Seller approved as delegated and responsible to ensure each Loan meets the eligibility and underwriting guidelines as outlined in this Guide.

Fannie Mae’s automated underwriting system, including any successor system.

The loan document delivery checklist available on the PHH Correspondent portal.

The failure by the mortgagor to make any of the four payments next due after the purchase date and such payments remain unpaid for 90 days.

When a loan purchased by PHH is paid in full within 180 days of the purchase date.

All first mortgage loans which satisfy all the selling requirements and product guides referred to in this Guide for which loans are delivered as defined in the commitment.

A transferable record as defined by Electronic Signatures in Global and National Commerce Act or the Uniform Electronic Transactions Act, whichever is applicable, stored electronically rather than using traditional paper documentation that has a pen and ink signature.

With respect to any locked loan, that date which the Loan File, Credit File, and any additional information required by PHH must be received by PHH for the purchase price percentage to be honored.

Liability insurance coverage for errors, mistakes, and negligence in the usual activities of mortgage banking, but excluding fraudulent behavior.

The amounts constituting ground rents, taxes, assessments, water rates, sewer rents, municipal charges, mortgage insurance premiums, fire and hazard insurance premiums, flood insurance premiums, and other payments required to be escrowed by the mortgagor with the Mortgagee pursuant to the terms of any documents included in a Loan File or program documents.

The Securities Exchange Act of 1934, as amended.

Federal National Mortgage Association, a federally chartered and privately owned corporation, organized and existing under the Federal National Mortgage Association Charter Act, or a successor thereto.

As per this Guide, any noncompliance with all applicable loan delivery instructions and product guidelines will result in various fees and penalties to Seller. PHH reserves the right of off-set against any outstanding fees against any proceeds due Seller including servicing release premiums.

The Federal Housing Administration, an agency within HUD, or any successor thereto, and including the Federal Housing Commissioner and the Secretary of Housing and Urban Development where appropriate under the FHA regulations.

A residential Loan, the payment of which is insured by the Federal Housing Administration or any successor thereto. Seller must be a HUD-approved Mortgagee to sell FHA loans to PHH.

Insurance that generally covers losses caused by dishonest or fraudulent acts by employees and others.

Fitch Ratings or its successor in interest.

Any Loan File document which, in the reasonable judgment of PHH, is falsified, defective, misleading, or inaccurate in any material respect.

Federal Home Loan Mortgage Corporation, a congressionally chartered corporation that purchases  Loans on the secondary mortgage market.

The payment by PHH to the Seller or its designee of the purchase price of a loan on the related funding date.

The date PHH sets up the loan for funding to the Seller.

Intentional abuse of truth in order to induce another to part with something of value or to surrender a legal right, an act of deceiving or misrepresenting, or any intentional act of concealing information.

The Government National Mortgage Association (GNMA) or any successor thereto.

Any party that executes a Guaranty and Support Agreement covering Seller’s obligations.

Any agreement executed by a Guarantor guarantying the Seller’s obligations under the Seller   Agreement and this Guide.

The complete written Seller Guide establishing PHH’s guidelines, procedures, rate reservation, credit policy, and document delivery requirements for a Credit File and Loan File being purchased by PHH, as amended by PHH from time to time in its sole discretion, and including any notices, announcements, or bulletins issued by PHH.

USDA's automated underwriting system, and any successor system.

A calculation to determine if a loan contains above-average fees or interest and falls within the state or federal definition of high-cost home loan or any similar term including, without limitation, “rate spread home loan,” “high rate, high fee mortgage,” “subprime home loan,” and satisfies all special requirements and restrictions on such high-cost home loans.

The Department of Housing and Urban Development, which is a governmental entity responsible for the implementation and administration of housing and urban development programs.

The audited net worth of the Seller, less any unacceptable assets per the HUD guidelines. The calculations of adjusted net worth must be prepared by a CPA as part of the audit of the Seller.

Any and all rights and privileges associated with the ownership of a loan including, but not limited to, the right to receive all payments of principal and interest paid by a mortgagor.

Kroll Bond Rating Agency, Inc. or any successor thereto.

Any assets to be readily converted into cash.

One to four-unit first lien, residential mortgage loans including conventional loans, USDA Loans, FHA Loans, and VA Loans (including investor rights and servicing rights), which are subject to the Seller Agreement and meet all of the requirements of this Guide and the program documents.

With respect to each loan and Mortgage Loan Package, the Lock Confirmation Letter provides for the sale by Seller and the purchase by PHH of the Mortgage Loan Package on the related Closing Date.

All documentation required for a loan as established by this Guide including, but not limited to, the original Mortgage Note, executed endorsement or assignment of the Mortgage Note from Seller, the loan application (1003 or redesigned URLA), verification of employment, deposits and income, credit reports, appraisal report, state and federal disclosure statements, fair lending and equal credit notices, certified copy of the mortgage in recordable form, certified copy of the assignment of mortgage in recordable form, preliminary title report and evidence that an ALTA title policy will be issued, survey of the property, evidence of hazard insurance showing proper coverage and loss payable endorsement has been ordered for PHH, evidence of delivery of flood insurance disclosures, and flood insurance coverage with loss payable endorsement in effect or ordered for PHH (if the property is in a required flood zone).

Freddie Mac’s automated underwriting system, including any successor system.

A loan that has been registered for a guaranteed rate and purchase price if delivered to PHH within a stipulated period of time, and for which a price confirmation has been issued by PHH. A locked loan becomes a Mandatory Commitment when it is closed.
A commitment requiring Seller to unconditionally sell a loan to PHH as set forth in such Mandatory Commitment. Notwithstanding the foregoing, any duty or obligation on the part of PHH to purchase a loan under a Mandatory Commitment shall be conditioned upon such loan complying with all of the terms and conditions of the commitment, the Seller Agreement, this Guide, and all of PHH’s documentation, underwriting, and product requirements in effect as of the purchase date. In no event shall PHH be required to purchase any loan that does not fully comply with same.
The contractually responsible servicer of a mortgage or pool of mortgages that is included in a subservicing arrangement.
Moody’s Investors Service, Inc. or its successor in interest.
The mortgage, Deed of Trust, or other Security Instrument which secures a Mortgage Note and creates a first lien on an estate in fee simple in the property.
An electronic system that assists Sellers, investors, and others in tracking mortgages, servicing rights, and security interests, thus streamlining and reducing the costs associated with servicing transfers, lien releases, and quality control processes related to registered mortgages. All approved Sellers must be MERS members.
An 18-digit identifier that MERS assigns to each registered mortgage, which is used to track the mortgage within MERS’ electronic system.
Any Agency or governmental entity that provides a guaranty with respect to a loan under a guaranteed loan program.
Any Agency or entity that provides insurance or other credit enhancements on a loan.
The pool or group of whole loans purchased on a Closing Date, as described in the Mortgage Loan Schedule annexed to the related commitment letter.
The schedule of loans prepared for each Closing Date on related commitment letters.
The promissory note of a mortgagor secured by a mortgage.
The originator of any loan, as Seller thereunder, together with its successors and assigns.
The maker, obligor, and/or guarantor of a Mortgage Note.
The right to set-off and deduct any fees, penalties, or other sums owed to PHH by the Seller under the terms of the program documents, which may include indemnification and repurchase invoices.
Loans originated and closed by the Seller but underwritten by PHH.
A Seller approved as Non-Delegated is responsible to ensure all processes of the loan origination are completed in accordance to Agency guidelines and regulatory requirements. Each Loan must be fully processed prior to submitting Credit File to PHH for underwriting.
The fee payable by Seller upon failure to timely deliver any loan to PHH by the Closing Date specified in the related Lock Confirmation Letter, which pair-off fee shall be determined as specified in PHH’s loan pricing policy in effect on the date of the related Lock Confirmation Letter, which Loan pricing policy may be amended and supplemented by PHH, from time to time, and shall be provided or made available to Seller by PHH.
Any individual, corporation, partnership, joint venture, association, limited liability company, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.
A post-securitization forensic review to audit loan information and monitor representations and warranties in accordance with Moody’s Criteria for Evaluating Independent Third-Party Loan Level Reviews for U.S. Residential Mortgage Backed Securities (RMBS), dated as of October 5, 2009, and additions thereto, including, but not limited to, future updates thereof.
A pre-securitization third-party loan level review to assess the characteristics and quality of the Loans in accordance with Moody’s Criteria for Evaluating Independent Third-Party Loan Level Reviews for U.S. Residential Mortgage Backed Securities (RMBS), dated as of October 5, 2009, and additions thereto, including, but not limited to, future updates thereof.
The sum of these amounts is shown as a total dollar amount.
The Seller Agreement, this Guide, the Agency and investor guidelines, the Seller application, the Officer’s Certification, the opinion of counsel, the commitment, the blanket Power of Attorney, the Guaranty and Support Agreement and the bailee agreement, as applicable, together with any and all attachments and exhibits thereto, and any and all amendments thereof.
The residential real property consisting of land and a one- to four-family dwelling thereon that is completed and ready for occupancy (including a condominium or leasehold where and when permitted by PHH).
The amount paid for the loan above the outstanding balance, calculated by multiplying the outstanding loan balance at purchase by the purchase price percentage less 100%.
The payment amount agreed upon for each loan sold to PHH corresponding to the commitment to purchase such loans.

The obligations imposed by:

  • Title V of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801 et seq.
  • The applicable federal regulations implementing such act and codified at 12 CFR Parts 40, 216, 332, and/or 573
  • Interagency guidelines
  • Other applicable federal, state and local laws, rules, regulations, and orders relating to the privacy and security of Customer Information, including, but not limited to, the federal Fair Credit Reporting Act, 15 U.S.C. §§ 1681 et seq., and similar state laws
The residential real property securing a loan, consisting of land and a one-to-four family dwelling thereon that is completed and ready for occupancy.
The date when the loan, or pool of loans, is sold to PHH and the purchase price is paid by PHH.
The related purchase price percentage multiplied by the outstanding principal amount of the loan as of the related purchase date, plus any SRP for such loan as paid on the related closing day by PHH to the Seller pursuant to the Seller’s Agreement in exchange for the loan and related servicing rights.
The percentage of the outstanding principal amount of a loan specified in a commitment, which is used to calculate the purchase price for the loan and to determine if the purchase price includes a premium.
PHH’s requirements, including guidelines, policies, procedures and delivery requirements of a Credit File and Loan File being purchased by PHH, which PHH may provide to the Seller and may amend and supplement from time to time in PHH’s sole discretion.
PHH’s underwriting guidelines, which PHH may provide to the Seller and may amend and supplement from time to time in PHH’s sole discretion.
Has the meaning assigned to such term in Regulation Z and related rules.
The Seller’s program, audits, and procedures to ensure sound practices in originating the loans in compliance with all applicable laws, regulations, benefits to the borrower, and Agency and investor requirements, and that loans are investment loan quality.
The PHH third-party origination Rate Lock Desk, available at Ratelock@PHHMortgage.com.
Any of S&P, Moody’s, Fitch, DBRS, Kroll or, in the event that some or all ownership of the Loans is evidenced by mortgage-backed securities, the nationally recognized rating agencies issuing ratings with respect to such securities, if any.
The agreement or agreements entered into by the Seller and PHH or an affiliate of PHH or any successor and/or certain third parties on the Reconstitution Date or Dates with respect to any or all of the loans sold by Seller to PHH under the Seller Agreement and this Guide, in connection with a Whole Loan Transfer or Securitization Transaction as provided in the Reconstitution of Loans section of this Guide.
The date or dates on which any or all of the Loans sold by Seller to PHH under this Agreement shall be reconstituted as part of a Whole Loan Transfer or Securitization Transaction pursuant to the Reconstitution of Loans section of this Guide.
Subpart 229.1100 - Asset Backed Securities (Regulation AB), 17 C.F.R. §§229.1100-229.1123, as such may be amended from time to time, and subject to such clarification and interpretation as have been provided by the Commission in the adopting release (Asset-Backed Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,631 (Jan. 7, 2005)) or by the staff of the Commission, or as may be provided by the Commission or its staff from time to time.
Those binding representations, warranties, covenants, and agreements of a Seller made to PHH in the program documents.
The Seller’s binding obligation to reacquire PHH's interest in a loan previously sold to PHH by the Seller due to an event of default under this Guide.
The price to be paid by the Seller to repurchase a Loan(calculated in accordance with Section 4.9.3) The amount will include base price, the Premium, all accrued interest and any reasonable expenses and/or attorney’s fees incurred by PHH. The base price of the loan will be the amount needed to make PHH whole. It will be the outstanding principal balance or the percentage price paid times the outstanding balance, depending on whether the loan has been pooled or sold.
In evaluating assets, one month’s reserve is an amount equal to the monthly payment on the property in question, including principal and interest, real estate taxes, property hazard insurance premium, and, where applicable, mortgage insurance premiums, leasehold payments, homeowners’ association dues (excluding any unit utility charges, and required payments on secondary financing.
A government agency within the U.S. Department of Agriculture (USDA) that makes direct loans and guarantees mortgages secured by residential properties located in rural areas, concentrating on borrowers who meet income eligibility requirements.
Standard & Poor’s, a division of the McGraw-Hill Companies, Inc., or its successor in interest.
The Securities Act of 1933, as amended.
Any transaction involving either (1) a sale or other transfer of some or all of the loans directly or indirectly to an issuing entity in connection with an issuance of publicly offered or privately placed, rated or unrated mortgage-backed securities or (2) an issuance of publicly offered or privately placed, rated or unrated securities, the payments on which are determined primarily by reference to one or more portfolios of residential mortgage loans consisting, in whole or in part, of some or all of the loans.
The mortgage, deed of trust, or other similar security instrument that secures a Mortgage Note and creates a first lien on an estate in fee simple in the Property.
Each third-party loan originator who is a seller under an executed Seller Agreement with PHH.
The applicable Loan Purchase and Sale Agreement for the sale of any residential mortgage loan, including the related servicing rights, originated by the Seller to PHH, as the same may be amended, restated, supplemented or otherwise modified from time to time, and including all applicable annexes, exhibits, attachments, commitments, and schedules attached thereto, and variances approved in writing by PHH with respect to any terms or conditions of such Agreement or provisions of the Guide.
An amount paid by PHH for the servicing rights.
The sale of loans in which the Seller retains the servicing rights and PHH acquires the investor rights in the loans.
All rights to service a loan for the owner of the loan.
A remedy available to PHH if Seller breaches the Seller Agreement whereby PHH may require precise fulfillment of the Seller’s contractual obligation to sell loans to PHH pursuant to the terms of the Seller Agreement and commitment.
The guidelines in this Guide which contain the basic loan underwriting and processing requirements, procedures, and forms of PHH for loans originated by a Seller for sale to PHH.
Electronic transfer of funds.
The United Stated Department of Agriculture (USDA) Rural Development, and includes The Rural Housing Service, an agency of the USDA or any successor thereto, and including the Farmers Home Administration, as the predecessor in interest to the Rural Housing Service.
A loan guaranteed by the U.S. Department of Agriculture (USDA) Rural Development.
The United States Department of Veterans Affairs, or any successor thereto.
A loan guaranteed by the Veterans Administration, with a loan term of not more than 360 months nor less than 180 months, unless otherwise provided for in a commitment, with a maximum loan amount not exceeding that permitted in the applicable jurisdiction and with a combined loan guaranty and equity of not less than 25%.