Large lender adopting Blend's origination tools

PHH Mortgage has entered into a technology partnership with Blend Labs, implementing the latter's Mortgage Suite offering for its origination operations.

"We're truly passionate about making the loan process as seamless and intuitive as possible for our customers while providing our teams with tools that match today's consumer expectations," said Colin Friday, PHH's senior vice president of mortgage origination, in a press release.

"By partnering with Blend, we're embracing advanced automation and digital capabilities that not only eliminate inefficiencies but also allow us to focus on what truly matters — helping our customers achieve their homeownership dreams," he added.

Among the products PHH will adopt are Loan Officer Toolkit, which streamlines document collection, and Blend Close.

Onity Group, formerly known as Ocwen, is PHH's parent company; it also is in the reverse mortgage business.

Onity reported origination volume of $8.5 billion for the third quarter, up from $7 billion in the second quarter, its 10-Q filing said.

In the third quarter, Blend Labs had its first ever positive non-GAAP operating income, at 0 cents per share (approximately $40,000) which beat Keefe Bruyette & Woods and consensus estimates of a 2 cent per share loss (in dollar terms, a loss of $4.5 million).

"Despite continued mortgage rate volatility, Blend remains encouraged by upbeat conversations with lenders regarding increased appetite for tech investments," KBW analyst Ryan Tomasello said in a Nov. 6 earnings wrap up note. "Management cited mortgage churn returning to normalized levels and a healthy pipeline of new logos."

Its Mortgage Suite revenue of $21.5 million increased 6% compared with the third quarter of 2023. That was better than KBW's estimate of a 2% decline, and consensus 6% drop. Revenue per loan in the third quarter was $99, up 2% from the second quarter and 15% over one year prior.

"Lenders like PHH Mortgage are redefining home lending with strategies that build stronger connections and long-term relationships with borrowers," said Nima Ghamsari, head of Blend, in the press release announcing the agreement. "We're honored to be a key partner in that journey, delivering seamless, cost-efficient origination solutions that drive higher conversion rates and build long-term loyalty."