PHH Corp. (NYSE: PHH) is a provider of mortgage services to the secondary market in the United States. Customers include financial institutions and real estate brokers. The company had a market capitalization of $642.20 million, as of May 5, 2016. It sells mortgage services directly to retail customers through its subsidiary, PHH Mortgage. The company’s operations include originating, selling and servicing residential mortgage loans. The following is a company review of PHH Mortgage.

Who They Are

Since 1989, PHH Mortgage has become an industry leader in providing mortgage services to retail customers in the United States. It specializes in mortgages with the simple goal of helping customers obtain home finance. The company stands behind its service by offering customers a competitive service guarantee. It additionally provides loan pre-approvals, which is beneficial to the borrower in terms of knowing the amount they can spend on a property.

Mortgage Products Offered

PHH Mortgage offers fixed-rate and adjustable-rate (ARM) mortgages, as well as other loan types, including jumbo loans, Federal Housing Administration (FHA) mortgages and Veterans Affairs (VA) mortgages.

A fixed-rate mortgage's interest rate remains constant throughout the term of the loan. PHH Mortgage offers 15-, 20-, 25- and 30-year amortization terms. This loan type is a popular choice for customers who intend to remain in the same property for over 10 years, as monthly payments of principal and interest don’t change, even if interest rates rise.

An ARM has an interest rate that is fixed for a set number of years, after which it fluctuates according to an economic index. PHH Mortgage offers ARMs with fixed-rate terms of three, five, seven and 10 years. This loan type may be suitable for customers who plan to sell their new homes after several years, or those with variable incomes.

Jumbo loans are for lending amounts above the conforming limit, which is $417,000 in all states except Hawaii and Alaska.

FHA loans are secured by the federal government and the Federal Housing Administration. This loan type is designed to make purchasing a home attainable for first-time buyers, as it is relatively easy to qualify for and is available to all income levels. Down payments come as low as 3.5%.

VA mortgages are guaranteed by the United States Department of Veterans Affairs. This loan type is available to veterans and military personnel, including spouses in certain circumstances. The mortgage features a low or zero down payment and has more flexibility than conventional loans.

PHH Mortgage also provides several refinancing solutions.

Mortgage Rates

As of May 5, 2016, PHH Mortgage flagship rates were as follows:

A conventional 30-year fixed-rate mortgage had an interest rate of 3.65% with an annual percentage rate (APR) of 3.739%.

A conventional 15-year fixed-rate mortgage had an interest rate of 2.96% with an APR of 3.119%.

An adjustable-rate 10/1 mortgage had an interest rate of 3.34% with an APR of 3.49%.

An adjustable-rate 7/1 mortgage had an interest rate of 3.125% with an APR of 3.413%.

An adjustable-rate 5/1 mortgage had an interest rate of 2.92% with an APR of 3.384%.

The interest rate is the amount of interest due per month of the amount borrowed. The APR includes the interest rate, points, broker fees and various other expenses required to secure the loan. The first number in the ARM term represents the number of years the interest remains fixed, while the second number indicates the adjustment period of the loan. Refer to the company’s website for up-to-date quotes.

What Consumers Are Saying

PHH Mortgage receives a one-star rating out of a possible five-star rating from 40 votes on the Consumer Affairs website. Customer reviews posted by early May 2016 exhibited a common theme of payment administration issues and substandard customer service.

Customer reviews on the Better Business Bureau website were similarly unflattering, with nine negative reviews and one neutral review. Customers reported the same issues as seen in the Consumer Affairs reviews: Payments weren't processed correctly and there was a lack of communication regarding mortgage inquiries.

PennyMac Mortgage Overview (PFSI)

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