MOUNT LAUREL, N.J. – PHH Corp. said it received $50 million from private equity fund the Blackstone Group as a break-up fee for the failed takeover of the largest mortgage bank for credit unions.
The $1.8 billion deal collapsed on New Year’s Day when Blackstone, which was supposed to buy PHH’s mortgage operations after General Electric acquired all of PHH, backed out of the deal due to its inability to obtain financing.
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PHH, which has a long-standing relationship with hundreds of credit unions, became the largest mortgage bank for credit unions in 2005 when it acquired CUNA Mutual Group’s mortgage operations.
