Under the terms of a new agreement between PHH Corp. and Bank of America, PHH will continue to provide mortgage origination services to Merrill Lynch clients.
The agreement, which was announced Thursday, renews a deal between PHH and Bank of America that outsources the origination of Merrill Lynch’s mortgages to PHH.
The companies’ current deal will expire on Dec. 31, 2015, and new deal will begin on Jan. 1, 2016.
Terms of the deal were not disclosed.
“We are extremely pleased to continue our relationship with our largest private label client, a trusted and well-respected firm,” PHH’s president and chief executive officer, Glen Messina said.
“We thank the Bank of America and Merrill Lynch teams for working with us to achieve our mutual objectives and are committed to fulfill our obligations and commitments under our new agreement,” Messina added.
In the third quarter of 2015, PHH’s mortgage production segment posted a loss of $10 million in the third quarter, compared to a segment profit of $3 million in the second quarter of 2015 and a segment loss of $28 million in the third quarter of 2014.