PHH Sells Certain Assets of Home Loans Business to Guaranteed Rate, Realogy JV.
15 February 2017 - US-based financial services company PHH Corp. (NYSE: PHH) has entered into an agreement with Guaranteed Rate Affinity LLC, a new joint venture established by Guaranteed Rate, Inc. and Realogy Holdings Corp. (NYSE: RLGY), for the sale of certain assets of PHH Home Loans, the company said.
As part of the transaction, Guaranteed Rate Affinity will acquire certain assets of PHH Home Loans' mortgage operations, including its four regional mortgage origination and processing centres, corporate relocation division and a substantial majority of employees across the United States.
Following the completion of the transaction and subsequent monetization of the net investment in PHH Home Loans, the company expects to realise cash proceeds of USD 92m before estimated transaction and other costs.
The closing of the transaction is subject to Guaranteed Rate Affinity meeting certain state mortgage licensing requirements, PHH stockholder approval and other closing requirements.
This transaction is expected to include a series of interim asset sale closings with the initial closing targeted to occur in June 2017 and the final closing expected to occur during the fourth quarter 2017.
Headquartered in Mount Laurel, New Jersey, PHH Corp. is a provider of end-to-end mortgage solutions through its subsidiary, PHH Mortgage.
Its outsourcing model and proven expertise, combined with a strong commitment to operational excellence and customer service, has enabled PHH Mortgage to become one of the largest non-bank originators and servicers of residential mortgages in the United States.
PHH Mortgage provides mortgage solutions for the real estate market and financial institutions, and offers home financing directly to consumers.
Headquartered in Mount Laurel, New Jersey, PHH Home Loans, LLC is a joint venture between PHH Mortgage, a subsidiary of PHH Corp. (NYSE: PHH), and Realogy Holdings Corp. (NYSE: RLGY).
Through this joint venture, the company provides mortgage services to more than 700 real estate offices within NRT, LLC, a subsidiary of Realogy and the nation's largest residential real estate brokerage company.
Sector: Banking/Financial Services
Target: Certain assets of PHH Home Loans mortgage operations
Buyer: Guaranteed Rate Affinity joint venture
Vendor: PHH Corp
Deal size in USD: 92m
Buyer advisor: , ,
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|Publication:||M & A Navigator|
|Date:||Feb 15, 2017|
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