PHH Corp. has agreed to sell the remainder of its mortgage servicing rights (MSR) portfolio to New Residential Investment. News of the $912 million transaction comes almost two months after PHH agreed to sell its Ginnie Mae MSR portfolio for $122 million.

Like many mortgage companies, Mount Laurel, N.J.-based PHH has experienced operational difficulties. It suffered a string of quarterly losses and is fighting a $109 million penalty in federal court that was imposed in 2015 by Consumer Financial Protection Bureau Director Richard Cordray for allegedly taking illegal kickbacks from mortgage insurers, leading to rising costs for borrowers. A federal appeals court overturned the fine in a landmark ruling and now both sides are filing briefs in preparation for the government's appeal. Ballard Spahr lawyer Barbara Mishkin details the latest legal maneuvers in a recent blog post.