Buffalo, NY (WBEN) Last year, HSBC announced hundreds of jobs would be lost as the bank announced it would have PHH Mortgage Corporation handle retail mortgage and processing operations. Today, Governor Cuomo says those who lost their jobs could get them back.
Cuomo says PHH Mortgage Corporation will move forward with a $35 million expansion plan in Amherst.To help facilitate the job retention and expansion, New York State will provide up to $3 million in incentives through Empire State Development, tied to both the retention of the 400 HSBC jobs as well as the creation of up to an additional 400 jobs at PHH Mortgage's Western New York facility.
As part of the agreement between HSBC Bank USA, N.A. (“HSBC”) and PHH Mortgage, HSBC will outsource its mortgage processing and servicing business to PHH, and transfer 400 former HSBC employees to PHH Mortgage.
"Last year, when HSBC announced that they would cut thousands of jobs – including hundreds of positions here in New York – the state and our business community quickly stepped up to the plate to preserve the jobs at retail banks," Governor Cuomo said. "Today's action by PHH Mortgage, assisted by up to $3 million in state resources as well as local support, is a big victory for Western New York, allowing 400 HSBC employees to keep their jobs and enable the potential hiring of hundreds more over the next years. This announcement demonstrates that New York State once again is open for businesses to grow and expand, and is another example of the state working in partnership with the private sector to leverage major investments and job creation."
”We are excited to partner with HSBC and thrilled to welcome many HSBC employees to the PHH Mortgage team,” said David Tucker, President of PHH Mortgage. “The outstanding workforce in Erie County is a key reason we decided to remain in this area, and as our relationship with HSBC thrives, we look forward to building on our presence. I would like to thank the State of New York and the Amherst Industrial Development Agency for welcoming PHH Mortgage and supporting our plans to do business here.”
In May 2012, it was announced that HSBC had entered into a strategic relationship with PHH Mortgage to manage its mortgage processing and servicing operations, which is currently located at a facility on Walden Avenue in Depew. After extensive review, PHH determined that it could not remain at the present site and undertook a property search as it needed a larger facility to meet its expansion needs.