MT. LAUREL, N.J. – PHH Corp., which operates the largest mortgage bank for credit unions, reported yesterday that third quarter losses more than doubled to $84 million, or $1.56 a share.
The company, which owns the former CUNA Mutual Mortgage operations, said third quarter results include a $61 million charge for goodwill impairment associated with its PHH Home Loans LLC Mortgage Venture. Much of that was offset by a merger termination payment of $42 million from Blackstone Capital Partners V LP, which terminated its agreement to acquire PHH, then sell the mortgage operations to GE Capital.
As a result, losses for the first three quarters of the year rose to $38 million, or 70 cents a share, from a loss of $24 million, or 44 cents a share for the first nine months last year.
The company said mortgage activity fell during the quarter, with total closings falling 23% to $7.9 billion. Much of the decline was due to a 42% decline in refinance closings.
