For the uninitiated, PHH late last year announced that it had had its fill of the private label fulfillment business, opting to gracefully bow out of the sector and then turn over its operations to LenderLive. The pair’s freshly inked agreement, approved by the boards of both companies and all other appropriate parties, is expected to facilitate a smooth changeover for both PHH employees and clients. After the deal closes, the transitioning associates will become LenderLive employees, and the Jacksonville operations center will be rebranded as LenderLive.
"We are excited about the opportunity of adding a significant number of talented mortgage professionals and establishing a new operations center for LenderLive in Jacksonville,” said Rick Seehausen, LenderLive CEO. “The arrangement accelerates our long-stated imperative of driving scale and operating leverage in our private label Mortgage Solutions business.”
Under the agreement, PHH will outsource loan processing, underwriting, and closing activities to LenderLive until the contracts with its current clients served out of Jacksonville have been transitioned and/or completed. LenderLive will service these accounts from the operations center in Jacksonville and intends to hire 250 to 300 PHH staffers to work from that locale. Throughout this year, clients requiring outsourced fulfillment services will be transitioned to LenderLive. Another benefit of the agreement: The Jacksonville operations center, a capacious piece of real estate capable of supporting some 700 employees, will allow LenderLive to expand its operations to meet the demand for services from its current and future clientele.
“We look forward to welcoming our new associates and demonstrating the benefits of our platform and business model to PHH clients,” Seehausen added. “This is a win-win for everyone involved.”