Up to $3 Million in State Funding Leverages $35 Million Private Investment
PHH Mortgage Corporation will move forward with a $35 million expansion plan in Amherst, Erie County that will retain 400 jobs that were in jeopardy of being lost after HSBC Bank announced major job reductions last year.
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,” stated 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.”
PHH Mortgage had considered locations in other states to accommodate its future growth. After meeting with state and local officials, the company chose to locate to an approximately 100,000 square foot facility on Wehrle Drive in Amherst that will be built specifically for the company.
New York State will provide up to $3 million in Excelsior tax credits while the Amherst IDA will provide an estimated $1,312,500 in sales tax savings.
The expansion project will begin in 2013 with PHH Mortgage occupying temporary space until the proposed facility is complete in the fourth quarter of 2013.
Amherst IDA Executive Director James J. Allen noted, “Cooperation and confidentiality between several levels of elected government and agencies were critical to secure PHH Mortgage’s investment in the region. The Amherst IDA was pleased to partner with New York State, Erie County, the Town of Cheektowaga and Village of Depew on a project that highlights our competitive position of having a highly skilled workforce for prominent financial services companies like PHH Mortgage.”
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. PHH Mortgage projects the need for a large facility to house approximately 400 employees it will shift from Depew, once the transaction with HSBC is complete in 2013, along with plans to add additional new jobs in the future.
Empire State Development President, CEO & Commissioner Kenneth Adams said, “Creating additional jobs in the financial sector will create tremendous opportunities for the Western New York workforce. Under the leadership of Governor Cuomo, the state is working harder than ever to show companies like PHH Mortgage that New York State is the right place to invest and grow its business.”
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