MT. LAUREL, N.J. – PHH Corp., which operates the largest mortgage bank for credit unions, reported a loss yesterday of $52 million for its third quarter, despite strong production from its mortgage unit.
The mortgage production segment posted a profit of $46 million for the third quarter, driven by solid volumes and healthy margins. The drop in primary mortgage rates at the end of the quarter lifted production volumes going into the fourth quarter. But the company said a $139 million loss on the value of its huge mortgage servicing rights portfolio and $35 million of credit related charges on its mortgages pushed it into the red for the quarter.
Revenues for the third quarter declined 5% to $507 million.
For the first three quarters, revenues rose 1% to $1.86 million, and net income was $56 million, compared to a loss of $64 million for the first nine months of 2008.
