Just three months after Bank of America and PHH renewed their agreement for PHH to continue servicing Merrill Lynch clients, BofA decided to pull the origination of new applications for certain mortgages; both of the moves take the mortgages into internal operations.
PHH disclosed the information earlier today to investors.
This change represents about 20% of Merrill Lynch’s closing dollar volume, and about 5% of PHH’s closing dollar volume. Merrill Lynch will now perform these new mortgages internally starting on April 25, 2016. Merrill Lynch’s closing volume accounted for about 26% of PHH’s total volume for 2015.
In December, Bank of America Merrill Lynch agreed to continue using PHH’s services starting on January 1, 2016, however the terms of the agreement were not disclosed.
PHH received no assurances regarding the remainder of the Merrill Lynch origination activity, which could also be subject to change at any time during 2016 or beyond.