PHH Finds More Accounting Errors
MOUNT LAUREL, N.J. -- PHH Corp., now the largest mortgage bank for credit unions, said it has discovered more accounting problems which will it require it to restate earnings before last year's spin-off from Cendant Corp., and prevent it from reporting its second quarter earnings on time. An internal audit has determined that the company's financial reports from 2001 through Sept. 2005 cannot be relied on because of material errors, and the audit reports of Deloite & Touche LLP, the company's public accounting firm, may also not be relied on for those periods. The company reported earlier it expects to report a loss for fiscal 2005 and the first quarter of 2006. PHH, by virtue of acquiring CUNA Mutual’s mortgage banking operations, now controls the largest mortgage portfolio in the credit union movement, with almost $10 billion worth of mortgages originated through credit unions, and relationships with 1,000 credit unions. The company is the country’s 11th largest mortgage bank, with a portfolio more than $140 billion.