MT. LAUREL, N.J. – PHH Corp., the biggest private label mortgage bank for credit unions, reported a $49 million first quarter profit yesterday, based on the gain from the spinoff of half its STARS appraisal services unit.
PHH reported a $68 million gain from the sale of a controlling 50.1% stake in STARS to a joint venture with CoreLogic. The spinoff was completed March 31.
PHH, which also operates a big fleet business, said first quarter revenues rose 15% from the same quarter last year, to $665 million, even as revenues from its core fleet leasing business were flat at $337 million.
PHH, which provides mortgage services to an estimated 1,000 credit unions and banks, said the performance of its vast mortgage portfolio continued to improve in the first quarter, with the delinquency ratio declining to 3.15%, down from 3.88% at Dec. 31. The company’s mortgage servicing portfolio grew to $171 million at March 31, from $161 billion at Dec. 31.
