Jones Day has advised PHH Corporation on the sale of its MSR portfolio and related servicing advances to New Residential Investment Corp.
In the filing, PHH said that the closing of this sale constituted the initial sale of MSRs under its agreement with New Residential.
When PHH initially announced the deal in December, it said it planned to sell the servicing rights on 480,000 mortgages with a total unpaid principal balance of $72 billion to New Residential.
Based on the “MSR portfolio composition” and market conditions, PHH said that it expects the proceeds of the deal to be approximately $912 million.
Of that $912 million, approximately $612 million is from the sale of the MSRs themselves and approximately $300 million is related to the sale of servicing advances.
The Company sold the Freddie Mac MSR Portfolio, together with all servicing advances related to the Freddie Mac MSR Portfolio, for total proceeds of approximately $110 million, of which approximately $101.5 million was attributable to the purchase price for the Freddie Mac MSR Portfolio and approximately $8.5 million was attributable to the related servicing advances.
As part of the deal, PHH will be subservicing the MSRs for New Residential for an initial period of three years. The SEC filing also states that in order to facilitate New Residential’s financing of servicing advances as part of the subservicer agreement, New Residential will reimburse PHH on a weekly basis for any servicing advances that PHH makes.
Jones Day has advised PHH Corporation on the deal with a team led by Jeffrey Symons (picture) and Claire Sheng.
Law Firms: Jones Day;
Clients: PHH Corporation;