CBCF Citizens Banking

FLINT, Mich., March 13 /PRNewswire-FirstCall/ -- Citizens Banking Corporation (NASDAQ:CBCF) announced today that it has selected PHH Mortgage, a subsidiary of PHH Corporation (NYSE:PHH), as a strategic partner for its mortgage loan business. PHH Mortgage is the industry's leading provider of private label mortgage services and the top originator of mortgage loans by phone. Within the private label relationship, PHH Mortgage will provide the technology and expertise to the Citizens mortgage sales force that creates an end-to-end mortgage experience which seamlessly promotes the Citizens name and brand in all client communications, materials, and products. "Partnering with PHH will ensure that we maintain a competitive position on par with the largest and best players in the mortgage industry," said William R. Hartman, chairman, president, and chief executive officer of Citizens Banking Corporation. "Our new mortgage loan operating model increases our ability to originate loans through more channels, improves our access to technology, products, competitive pricing, and world-class customer experience, and leverages the Citizens name to create brand equity with our clients." PHH Mortgage will provide Citizens with mortgage loan processing, servicing, secondary marketing functions, and other mortgage-related loan origination services. The arrangement allows Citizens' mortgage loan officers to use Web-based software while PHH employees will do all the loan-processing work using the Citizens name. PHH Mortgage will also take mortgage loan applications directly through a Citizens-branded call center and Web site. Benefits to Citizens' clients include a broader product menu, faster approvals, streamlined and reduced documentation requirements for most loans, and access to their loan processing status 24 hours a day, seven days a week. Additionally, clients will have the ability to apply for a loan via their channel of choice (loan officer, Internet, branch, or telephone). Citizens has also arranged for PHH Mortgage to service the loans originated through PHH as Citizens Bank. Citizens will also retain the ability to offer its products and services to loans being serviced by PHH. "I am very excited about the new mortgage platform because it creates a winning situation for all parties involved," said Mike Sonego, senior vice president and head of mortgage for Citizens Banking Corporation. "Our sales people win because they have the best tools in the business including point- to-point sales origination systems, robust product menu, and technology. Clients win because we deliver a best-in-class mortgage experience from application through closing and into servicing. And, our shareholders win because we are better able to allocate internal resources with the creation of this more profitable business model." About Citizens Banking Corporation Citizens Banking Corporation is a diversified financial services company providing a wide range of commercial, consumer, mortgage, trust, and financial planning services to a broad client base. Citizens Banking Corporation serves markets through Citizens Bank offices in Michigan and Wisconsin, and through F&M Bank offices in Iowa. Citizens Banking Corporation has roots going back to 1871 in Flint, Mich., and is the second-largest bank holding company headquartered in Michigan. Citizens is the 62nd largest bank holding company in the United States, with assets of $7.8 billion as of Dec. 31, 2005. More information about Citizens Banking Corporation is available at http://www.citizensonline.com/ . About PHH Mortgage PHH Mortgage is the industry's leading provider of private label mortgage services and the top originator of mortgage loans by phone. A subsidiary of PHH Corporation (NYSE:PHH), PHH Mortgage provides mortgage services to financial institutions, real estate brokers, affinity groups, credit unions, corporations, and government agencies. PHH Mortgage is currently listed as a "STRONG" (the highest rating) residential mortgage loan servicer by Standard and Poor's Ratings Services. In the first three quarters of 2005, PHH Mortgage provided $36.5 billion in mortgage financing for American homes. (Logo: http://www.newscom.com/cgi-bin/prnh/20050421/DETH014LOGO ) http://www.newscom.com/cgi-bin/prnh/20050421/DETH014LOGO http://photoarchive.ap.org/ DATASOURCE: Citizens Banking Corporation CONTACT: Media Contacts: Don Hoffman, Public Relations Manager of Citizens Banking Corporation, +1-810-237-4986, ; Karen McCallson, Director, Public Relations of PHH Mortgage, +1-856-917-8679, ; Investor Contacts: Kathleen O. Miller, Investor Relations of Citizens Banking Corporation, +1-810-257-2506, ; or Nancy Kyle, Vice President Investor Relations of PHH Corporation, +1-856-917-4268, Web site: http://www.citizensonline.com/

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