MOUNT LAUREL, N.J. – PHH Corp., which operates the former CUNA Mutual Mortgage, reported last week that vast losses on its mortgage servicing rights created a fourth quarter loss of $216 million, and a $254 million loss for the year.
The company, which operates the biggest mortgage bank for credit unions, said it marked down the value of its mortgage servicing rights by $390 million in the fourth quarter. For the year, MSRs were marked down by $466 million.
The company, which does business with more than 1,000 credit unions, said its troubled mortgage production business turned profitable in December and broke even for the fourth quarter.
PHH bought CUNA Mutual Mortgage in 2005. The operation included more than 250,000 residential mortgage loans and relationships with more than 1,000 credit unions.
