MOUNT LAUREL, N.J. – PHH Corp., which operates the largest mortgage bank for credit unions, reported a surge in second quarter earnings yesterday to $111 million, as its mortgage production soared.
The second quarter earnings compare to a $15 million net for the same period last year. Second quarter revenues were up 16% to $768 million.
A profit of $82 million for the company’s mortgage production operations was driven primarily by higher margins on mortgage loans, higher volume of interest rate lock commitments expected to close, and lower costs.
Second quarter results include a $175 million increase in the fair value of the MSR asset, primarily due to the increase in mortgage rates during the second quarter of 2009 partially offset by a $120 million reduction in the value of mortgage servicing rights due to prepayments and portfolio decay.
For the first six months of the year, PHH reported a 4% rise in revenues, to $1.35 billion, and a doubling in net income to $116 million.
