Mellon Bank Corp. has launched a private-label residential mortgage business with PHH Mortgage Services of Mt. Laurel, N.J. The deal would enable Mellon customers to continue to obtain mortgages through the bank, even though Mellon has sold its home loan business.

PHH, a unit of Cendant Corp.'s mortgage bank, would originate and service all of Mellon's new loans, now that Mellon has sold its $55 billion servicing portfolio to Chase Manhattan Mortgage.

Chase closed the deal for Mellon's 630,000 customers on Thursday. Mellon's jumbo mortgage business will continue to be run by Boston Co., another unit of Mellon.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.