PHH Mortgage is a specialized lender who is the underwriter and servicer for lots of loans that are applied for through other loan companies. Their specialization in the mortgage market and inhouse services make them an attractive subcontractor. PHH Mortgage is the 5th largest originator of retail residential mortgages, the 7th largest originator overall, and the 9th largest mortgage servicer. In 2015, we closed approximately $41 billion in mortgage financing and maintained an average servicing portfolio of approximately 1.1 million loans.
PHH Speaks as if Teenagers are Applying for Loans
The PHH Mortgage website is very reassuring and uses a lot of small words. Although they claim that they will guide you through the process, their descriptions are pretty elementary and not really that detailed. When a lender makes a decision about a mortgage application, they consider many basic factors: all based on your ability to repay the loan. To ensure your loan is truly affordable, a lender will verify your employment and income. Next they will consider your monthly “Debt to Income” ratio which consists of your total income, minus monthly credit payments and other debts will also be considered.The paperwork you will need to gather will include pay stubs, tax forms and bank statements at minimum. Next, they will place great emphasis on your credit score which they see as representing your willingness to pay back your debts.
Transparency and Accessibility of the Website
Since the language and descriptions are so skeletal, it is hard to accuse PHH of being misleading. It is also hard to give them any credit for letting clients know what the actual cost of the process will be, even just in relation to service charges. For example, their service charge disclosure, “Closing costs: such as an origination fee, attorney’s fee, initial escrow payments and the costs of obtaining title insurance and a survey. Closing costs are typically based on the home price and vary according to location.”