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72 LENDER/SERVICER PROFILE PHH Financial ONE2WATCH Sources: Quicken.org; Fitch Ratings (8/5/2013); Standard & Poor's (7/30/2013) Take a look inside the numbers S T A T E S S E R V I C E D * KEY TECHNOLOGY LPS' Mortgage Servicing Package (MSP) for Primary Servicing BITB used for collections and loss mitigation RES.NET for REO activities VERBOSITY About PHH Mortgage Solutions: » PHH Mortgage is the 6th largest originator of retail residential mortgages (1), the 8th largest originator overall (2) and the 7th largest mortgage servicer (3). » In 2012, PHH closed $55.6 billion in mortgage financing and maintained an average servicing portfolio of nearly 1,100,000 loans (4). (1) Based on 12M2012 statistics from Inside Mortgage Finance, February 21, 2013 (2) Based on 12M2012 statistics from Inside Mortgage Finance, January 31, 2013 (3) Based on 12M2012 statistics from Inside Mortgage Finance, February 21, 2013 (4) "PHH Corporation Announces Results for Fourth Quarter and Full- Year 2012," February 6, 2013 COMPANY VITALS Headquarters: Mount Laurel, New Jersey Phone: 800.449.8767 Online: PHH.com PHH Financial is one of the top outsource providers of mortgage and fleet management services in the United States, as well as a top ten originator of retail residential mortgages. PHH has more than a million loans in their portfolio, and at the end of 2012 it had almost $184 billion in unpaid principal balance. PHH's mortgage banking segment includes originating, purchasing, selling, and servicing mortgage loans. PHH typically sells originated loans to the secondary market, and retains the servicing rights on the mortgage loans sold. PHH's Mortgage Production branch maintains a joint venture with Realogy that allows Century21 and Coldwell Banker to market its mortgage loan products. PHH also builds revenue from fees earned from servicing rights and from subservicing agreements. Source: Reuters COMPANY'S LATEST November 4, 2013 PHH Corporation Announces Flow Sale Agreement for Mortgage Servicing Rights PHH Corporation announced today that its subsidiary, PHH Mortgage Corporation, and Matrix Financial Services Corporation, a subsidiary of Two Harbors Investment Corp., have entered into a flow sale agreement for the purchase and sale of mortgage servicing rights. Under the flow sale agreement, PHH Mortgage may sell to Matrix the MSRs on 50% or more of PHH Mortgage's newly-originated residential mortgage loans that are eligible for sale, subject to the parties' mutual agreement on quarterly pricing for the MSRs. The flow sale agreement has an initial term of two years, subject to earlier termination in accordance with its terms, and can be extended if mutually agreed upon by both parties. – PHH Mortgage Corporation Press Release August 6, 2013 Fitch Expects to Rate PHH's $300MM Senior Unsecured Notes 'BB' Fitch Ratings expects to assign a 'BB' rating to PHH Corporation's (PHH) proposed $300 million senior unsecured note issuance due 2021. The proceeds from the issuance, along with unrestricted cash on hand, will be used to tender $300 million of PHH's existing $450 million, 9.25% senior unsecured notes due March 2016 (2016 notes). In addition, PHH expects to use available unrestricted cash on hand to redeem $8 million in aggregate principal balance of medium-term notes outstanding on the next payment date to occur on Oct. 15, 2013. -Reuters SERVICER RATINGS Fitch Ratings: Residential Primary Servicer, Alt A- RPS2+ >> Residential Primary Servicer, Home Equity- RPS2+ >> Residential Primary Servicer, Prime- RPS2+ >> Residential Primary Servicer, Subservicer- RPS2+ Standard & Poor's: Residential Mortgage Servicer- Above Average >> Resi- dential Mortgage Subordinate-Lien Servicer- Above Average KEY PERSONNEL Glen A. Messina CEO David Tucker President Ralph P. Melbourne SVP, Real Estate Robert B. Crowl VP and CFO Staffing » 657 servicing employees PORTFOLIO STATS As of June 30, 2013, the company primary serviced 793,534 loans totaling $130.8 billion and subserviced 472,536 loans for $97.8 billion for a combined portfolio of 1,266,070 mortgage loans totaling $228.6 billion. This includes prime at 75,094 loans totaling $42.4 billion; Alt-A at 12,792 loans totaling $3.06 billion; HELOC at 87,770 loans totaling $6.1 billion; and 961,327 agency loans totaling $146.8 billion. *As of August 5, 2013 Primary serviced total of 836,973 loans totaling $132.9B. Subserviced total of 395,739 loans totaling $95.1B. Combined portfolio of 1,232,712 mortgage loans totaling $227.97B. *As of September 30, 2013 Loss Mitigation Stats: Turnaround time for a loss mitigation package is approx. 20 days Compared to: » 26 days in 2011 » 45 days in 2013 *As of April 2013 Delinquency Stats: » Sept. 30, 2013 - 3.34% » Dec 31, 2012 - 3.15% Bankruptcy Stat: » As of April 30, 2013, more than 76% of bankruptcy cases are current to the bankruptcy plan California, Florida, Texas, New York, New Jersey