Losses Widen At PHH Corp
MOUNT LAUREL, N.J. – PHH Corp., operator of the biggest mortgage bank for credit unions, reported yesterday its second quarter losses increased to $133 million, as mortgage rates fell to their lowest in five decades.
The second quarter loss compares to a loss of $106 million for the same period last year.
The company said results were affected by an unfavorable change in the fair value of the mortgage servicing rights emanating from a decline in mortgage interest rates during the second quarter of the year, compared to an increase in rates during the same period last year.
The change in value for mortgage servicing rights also caused net revenue to dip to $371 million from $768 million in second quarter 2009. Expenses increased to $586 million from $582 million in that same span.
For the first six months of the year PHH had a decline in revenues of almost 30% to $948 million, and a $196 million loss, compared to net income of $191 million for the first half last year.