The company said it came to the decision after an “exhaustive consideration of the available alternatives.” PHH intends its exit from the private label business to be complete by the first quarter of 2018, according to HousingWire. The company said its private-label business accounted for 78% of its total closing dollar volume, and expects to take a pre-tax loss between $175 million and $205 million.
PHH posted a net loss of $27 million in the third quarter, according to HousingWire. The company said the loss included $23 million in pre-tax expenses, including $11 million to increase reserves for legacy regulatory matters and a $13 million pre-tax adjustment to the company’s mortgage servicing rights.
The company also said that it had agreed to sell “substantially all” of its Ginnie Mae MSR portfolio to Lakeview Loan Servicing, according to HousingWire.
PHH announced Tuesday that it would be getting out of the private-label origination business, according to a report.