PHH Mortgage, Realogy Mutually Agree to Exit Existing PHH Home
Loans Joint Venture Relationship
Company Website:
http://www.phh.com
MOUNT LAUREL, N.J. -- (Business Wire)
PHH Corporation (NYSE: PHH) ("PHH" or the "Company") today announced
that it has entered into an agreement with Guaranteed Rate Affinity LLC,
a new joint venture established by Guaranteed Rate, Inc. (“Guaranteed
Rate”) and Realogy Holdings Corp. (NYSE: RLGY) (“Realogy”), for the sale
of certain assets of PHH Home Loans (“the transaction”). 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 centers, 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 realize
cash proceeds of $92 million 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. The 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.
Glen A. Messina, President and CEO of PHH Corporation, said, “We are
pleased to have reached an agreement with Guaranteed Rate Affinity for
the sale of the assets of our PHH Home Loans joint venture. The decision
to sell our existing Joint Venture is a result of our review of
strategic alternatives. We believe this outcome represents the best
opportunity to maximize the value of this platform and, when combined
with the previously announced sale of MSRs, enables us to realize a
substantial portion of our balance sheet value.”
About PHH Corporation
Headquartered in Mount Laurel, New Jersey, PHH Corporation is a leading
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.
For additional information, please visit www.phh.com.
About PHH Home Loans
Headquartered in Mount Laurel, New Jersey, PHH Home Loans, LLC is a
joint venture between PHH Mortgage, a subsidiary of PHH Corporation
(NYSE: PHH), and Realogy Holdings Corp. (NYSE: RLGY). Through this joint
venture, we provide 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. For additional
information, please visit www.phhhomeloans.com.
Additional Information and Where to Find It
In connection with the proposed transaction, PHH will file a proxy
statement with the Securities and Exchange Commission (“SEC”).
Stockholders are strongly advised to read the proxy statement and any
other relevant documents filed with the SEC as they become available
because they will contain important information about the proposed
transaction. Stockholders may obtain a copy of the proxy
statement when available along with other documents filed by the
Company, free of charge, by contacting PHH Investor Relations: in
writing at PHH Corporation, 3000 Leadenhall Road, Mt. Laurel, NJ 08054,
by telephone at 856-917-7405, by email at investor.relations@phh.com,
or by accessing the PHH website at www.phh.com,
or the SEC website at www.sec.gov.
Participants in Solicitation
The Company and its directors, executive officers, and certain other
members of its management and employees may be deemed to be participants
in the solicitation of proxies from its stockholders in connection with
the proposed transaction. Information concerning PHH’s directors and
executive officers is set forth in the proxy statement for PHH’s 2016
annual meeting of stockholders as filed with the SEC on Schedule 14A on
April 28, 2016, and in its most recent Annual Report on Form 10-K for
the fiscal year ended December 31, 2015 as filed with the SEC on
February 26, 2016. Information regarding the interests of such directors
and executive officers in the solicitation will be more specifically set
forth in the proxy statement concerning the proposed transaction that
will be filed with the SEC. In addition to the proxy statement, PHH
files annual, quarterly and special reports, proxy statements and other
information with the SEC. You may read and copy any reports, statements
or other information at the SEC public reference room in Washington,
D.C. Please call the SEC at 1-800-SEC-3030 for further information on
the public reference rooms. PHH’s filings with the SEC are also
available to the public from commercial document-retrieval services and
at the website maintained by the SEC at http://www.sec.gov.
Forward-Looking Statements
Certain statements in this press release are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995. Generally, forward looking-statements are not based on historical
facts but instead represent only our current beliefs regarding future
events. All forward-looking statements are, by their nature, subject to
risks, uncertainties and other factors that could cause actual results,
performance or achievements to differ materially from those expressed or
implied in such forward-looking statements. Investors are cautioned not
to place undue reliance on these forward-looking statements. Such
statements may be identified by words such as “expects,” “anticipates,”
“intends,” “projects,” “estimates,” “plans,” “may increase,” “may
fluctuate” and similar expressions or future or conditional verbs such
as “will,” “should,” “would,” “may” and “could.”
You should understand that forward-looking statements are not guarantees
of performance or results and are preliminary in nature. You should
consider the areas of risk described under the heading “Cautionary Note
Regarding Forward-Looking Statements” and “Risk Factors” in our periodic
reports filed with the U.S. Securities and Exchange Commission,
including our most recent Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q, in connection with any forward-looking statements
that may be made by us or our businesses generally. Such periodic
reports are available in the “Investors” section of our website at http://www.phh.com
and are also available at http://www.sec.gov.
Except for our ongoing obligations to disclose material information
under the federal securities laws, applicable stock exchange listing
standards and unless otherwise required by law, we undertake no
obligation to release publicly any updates or revisions to any
forward-looking statements or to report the occurrence or non-occurrence
of anticipated or unanticipated events.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170215006307/en/
Contacts:
PHH Corporation
Investors
Hugo Arias, 856-917-0108
hugo.arias@phh.com
or
Media
Dico
Akseraylian, 856-917-0066
dico.akseraylian@phh.com
Source: PHH Corporation
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