Originator points to improved servicing and operational performance as key drivers
Subservicer PHH Mortgage has revealed the performance results of its partnership with Sierra Pacific Mortgage.
In 2021, Sierra Pacific tapped PHH Mortgage as its mortgage subservicer, transferring a portfolio of about 54,000 loans with an unpaid principal balance of $15 billion.
Sierra Pacific said it realized significant gains across the board through the six months after the transfer, including a 75% reduction in customer complaint volume, a 70% reduction in the number of calls requiring customer service escalation, an 18% decline in one-time payments, a 22% increase in scheduled ACH payments, and 60% savings in its servicing oversight costs.
“PHH has shown an unwavering commitment to providing the highest levels of customer service,” Sierra Pacific chief financial officer Curtis Dair said in the company’s press release. “We have been very pleased with their early results and their ability to meet our expectations. Their dedication to their customers is exceptional, and they have met the high standards that Sierra Pacific has for its servicing partners.”
Additionally, PHH expects to help Sierra Pacific save approximately $2 million in costs based on its strong operational performance in managing defaulted loans versus Moody’s and MBA benchmarks. PHH has added more than $110 billion of new subservicing UPB over the past 24 months and is scheduled to onboard another $18 billion of subservicing UPB in the first half of 2023.
Scott Anderson, chief servicing officer of PHH Mortgage, commented: “What sets PHH’s subservicing platform apart is our ability to really understand our clients’ business needs and pain points to then work together to provide a solution that achieves their objectives. By delivering on our commitments for valued partners like Sierra Pacific, we’ve been able to not only offer improved servicing performance but also enhance their business in multiple areas. Mortgage originators are realizing immediate cost savings and performance gains when switching to the PHH servicing platform. We believe our ability to deliver best-in-class servicing, recapture, and capital markets performance is solidifying our position as the premier subservicer in the industry.”
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