PHH Mortgage to Provide Private Label Mortgage Services to HSBC Bank USA

PHH Mortgage Corporation (“PHH Mortgage”), a subsidiary of PHH Corporation

(the “Company”), today announced it has entered into a strategic relationship to provide private label end-to-end mortgage origination services and loan servicing to HSBC Bank USA, N.A. (“HSBC”). Under the terms of the agreements, PHH Mortgage will provide HSBC with mortgage origination processing services, as well as subservicing of HSBC's $15.5 billion prime mortgage loan portfolio and $36.6 billion of loans serviced for third-party investors (both as of March 31, 2012). It is expected that approximately 400 employees from HSBC's mortgage facility in Depew, New York, will transfer to PHH Mortgage, which plans to maintain operations in the area.