NEW YORK, Oct. 20, 2008 (GLOBE NEWSWIRE) -- Carver Bancorp, Inc. (NasdaqGM:CARV - News), the holding company for Carver Federal Savings Bank (``Carver Bank'' or ``Carver''), today announced that it has selected PHH Mortgage, a subsidiary of PHH Corporation (NYSE:PHH - News), as a strategic outsourcing partner for its mortgage loan origination and servicing business.

PHH Mortgage is the industry's leading provider of private label outsourcing for bank-owned mortgage companies. Within the private label relationship, PHH Mortgage will provide the back-end platform, technology, and expertise to the Carver Bank mortgage sales force. The end-to-end mortgage experience will seamlessly promote the Carver Bank brand in all customer communications, loan packages, and Internet.

``Carver, a trusted lender in inner city communities, will realize important benefits from this business partnership, including expansion of the residential loan products and services we provide our customers, while at the same time achieving greater efficiency in our retail mortgage business,'' said Deborah C. Wright, chairwoman and CEO of Carver Bank. ``Additional customer benefits will include faster approvals, streamlined documentation requirements for qualified applicants, competitive rates and access to loan processing status 24 hours a day, seven days a week. Customers will also have the ability to apply for a loan via their channel of choice: branch offices, phone, or starting an application via Internet.''

``PHH Mortgage is honored and excited to provide Carver Bank with a fully integrated, end-to-end, mortgage platform,'' said Bob Andwood, senior vice president private label solutions. ``Our platform will help Carver offer a best in class mortgage program consistent with its customer value proposition as well as position its mortgage business for long term competitive success.''

Under terms of the partnership, PHH employees will perform the loan-processing, underwriting, and closing functions in the name of Carver Bank, and will manage a full-featured Carver website dedicated to mortgage customers. Carver will provide additional convenience to its customers via PHH's inbound sales center, where customers on Carver's website or in its bank branches can simply call for and are guaranteed a same day mortgage decision.

About Carver Bancorp, Inc.

Carver Bancorp, Inc. is the holding company for Carver Federal Savings Bank, a federally chartered stock savings bank. Carver Federal Savings Bank, the largest African- and Caribbean-American run bank in the United States, operates 10 full-service branches in the New York City boroughs of Brooklyn, Queens and Manhattan. For further information, please visit the Company's website at http://www.carverbank.com.

About PHH Mortgage

PHH is the industry's leading provider of private label outsourcing. A subsidiary of PHH Corporation (NYSE:PHH - News), PHH Mortgage provides mortgage services to financial institutions, real estate brokers, affinity groups, credit unions, corporations, and government agencies.

About PHH Corporation

Headquartered in Mount Laurel, New Jersey, PHH Corporation is a leading outsource provider of mortgage and vehicle fleet management services. Its subsidiary PHH Mortgage is one of the top ten retail originators of residential mortgages in the United States(1), and its subsidiary PHH Arval is a leading fleet management services provider in the United States and Canada. For additional information about the company and its subsidiaries please visit our website at http://www.phh.com.

(1) Inside Mortgage Finance, copyright 2008

          For Carver Bancorp, Inc.
          Kekst and Company
          David Lilly
          Joseph Kuo
          (212) 521-4800
          
          PHH Mortgage
          Karen McCallson, Vice President Public Relations
          856-917-8679
          karen.mccallson@phh.com