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Morgan Stanley to handle mortgage originations in home-loan push: sources

Morgan Stanley to handle mortgage originations in home-loan push: sources
From Reuters - September 15, 2017

(Reuters) - Morgan Stanley plans to bring its mortgage origination business in-house to improve customer service and generate more business, two people familiar with the matter told Reuters on Friday.

The change comes ahead of the banks third-party provider, PHH Corp, exiting the origination business next year, and as Morgan Stanley makes a bigger push into mortgages.

Although it will soon begin handling the early stages of mortgage lending, Morgan Stanley will continue to use PHH for other functions like mortgage servicing, said the sources, who were not authorized to speak to the press.

Representatives for Morgan Stanley and PHH declined to comment.

Morgan Stanley got into consumer lending more aggressively after finalizing its purchase of the Smith Barney brokerage from Citigroup Inc in 2013. The deal came with a slew of deposits that Morgan Stanley had to start lending out to generate profits.

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