PHH Mortgage said it will no longer accept new FHA Streamline refinancings from correspondent lenders unless it is already servicing the loan, according to a memo provided to National Mortgage News.
PHH — the nation's sixth largest lender — is the second top ten ranked funder within a week to implement such a policy. The other was Wells Fargo & Co., which ranks first.
The Mount Laurel, N.J.-based firm issued the notice last Friday, June 15. "Effective immediately, PHH will no longer accept new registrations of non-PHH serviced FHA Streamline Refinances," the memo reads. "FHA Streamlined Refinance on PHH Serviced loans will continue to be allowed."
Any loans that were "registered" with PHH prior to June 16 will still be funded.
Yesterday, NMN reported that several large lenders besides Wells were contemplating similar Streamline strategies. Loan officers, talking off the record, said the decisions were to "capacity issues" at these firms.
PHH ranks seventh nationwide among correspondent loan buyers, according to the Quarterly Data Report, a SourceMedia/NMN publication.