Merrill Lynch, Cendant Team Up to Enhance Home Financing Services; Mortgage Alliance to Offer Broad Product Array, Competitive Prices

Business Wire, Dec 18, 2000

Business Editors

NEW YORK--(BUSINESS WIRE)--Dec. 18, 2000

Merrill Lynch (NYSE:MER) and Cendant Corporation (NYSE: CD) will team up to provide an enhanced array of home-financing services to Merrill Lynch's clients nationwide, the companies announced today.

Under the new alliance, Merrill Lynch will outsource its mortgage origination and servicing operations to Cendant. Merrill Lynch, through its Merrill Lynch Credit Corporation (MLCC) subsidiary, will continue to market mortgages to Merrill Lynch clients in partnership with their financial consultants.

MLCC will utilize Cendant's services on a private-label basis to process and service loans beginning in January 2001. Merrill Lynch will continue to market mortgages and other credit products through its network of 16,000 financial consultants in more than 800 branches nationwide. Terms of the agreement were not disclosed.

"We are delighted to form this united effort with Merrill Lynch. This is yet another great example of how Cendant, as a low-cost business services provider, offers world-class outsourcing services to its clients," said Terry Edwards, president and CEO of Cendant Mortgage. "We believe the combination of Merrill's market reach and reputation, together with our mortgage origination and servicing expertise and technological assets, will result in a superior client experience."

Executives of both companies expect the efficiencies of the new alliance to result in a broader spectrum of mortgage products offered at competitive prices with exceptional levels of service quality. The companies expect between them to retain a majority of the approximately 725 current employees of the Jacksonville, Fla.-based MLCC.

"Rarely does a strategic business alliance make so much sense," said John Qua, senior vice president, US Banking; a unit of the Merrill Lynch Private Client Group. "Now our clients can look forward to the top-notch service and innovative products they have come to expect complemented by an even greater array of home-financing solutions. Merrill Lynch will be able to provide even greater focus on helping clients find the best home-financing strategy to build their net worth and realize their goals. And Cendant will offer what it does best - a broad range of mortgage solutions, delivered with outstanding service quality."

Merrill Lynch is one of the world's leading financial management and advisory companies with offices in 44 countries and total client assets of about $1.8 trillion. As an investment bank, it is the top global underwriter and market maker of debt and equity securities and a leading strategic advisor to corporations, governments, institutions and individuals worldwide. Through Merrill Lynch Investment Managers, the company is one of the world's largest managers of financial assets. For more information on Merrill Lynch, go to www.ml.com.

Cendant Corporation is a global provider of real estate, travel and direct marketing related consumer and business services. The Company's core competencies include building franchise systems, providing outsourcing solutions and direct marketing. As a franchiser, Cendant is among the world's leading franchisers of real estate brokerage offices, hotels, rental car agencies, and tax preparation services. As a provider of outsourcing solutions, Cendant is a major provider of mortgage services to consumers, the global leader in employee relocation, and the world's largest vacation exchange service.

In direct marketing, Cendant provides access to insurance, travel, shopping, auto, and other services primarily to customers of its affinity partners. Other business units include NCP, the UK's largest private car park operator, and WizCom, an information technology services provider. Headquartered in New York, NY, the Company has approximately 28,000 employees and operates in over 100 countries. More information about Cendant, its companies, brands and current SEC filings may be obtained by visiting the Company's Web site at www.cendant.com or by calling 877-4INFO-CD (877-446-3623).