MT. LAUREL, N.J. – PHH Corp., which operates the biggest third-party mortgage bank for credit unions, moved out of the red for the fourth quarter and for the whole of 2009, the company reported yesterday.
Net income for the fourth quarter was $97 million and for the full year it was $153 million, compared to a loss of $216 million for the fourth quarter of 2008 and a loss of $254 million for fiscal 2008.
Fourth quarter revenues more than tripled to $744 million, while annual revenues rose a solid 27% to $2.6 billion.
"Our 2009 core earnings were a reflection of higher mortgage production volumes and margin improvement, as well as cost reductions in our businesses," said President and CEO Jerry Selitto.
Mortgage production (originations) continued its positive momentum for the year, posting segment profit of $65 million for the fourth quarter of 2009.
Mortgage servicing’s fourth quarter 2009 segment profit of $86 million and core earnings (pre-tax) of $15 million continued to be affected by provisions for credit-related reserves due to foreclosure activity the company said. However, results reflected nominal reinsurance provisions as home price and delinquency trends abated somewhat.
