PHH Corp., which controls the nation's seventh-largest residential lender, earned $28 million in the second quarter, almost double its profit the year earlier.
PHH Mortgage also reported that it is closing more purchase-money loans than refis, at least compared to the year before.
The Mt. Laurel, N.J., lender, the largest private-label funder in the U.S., originated $10.1 billion of product, a 7% decline from the year earlier. "Home purchase closings represented 61% of total originations during the second quarter of 2010," the company said.
Though the company made money overall, PHH Mortgage suffered a $273 million loss on its servicing business due to a reduction in the value of mortgage servicing rights. PHH said it made a "$46 million adjustment due to prepayments and recurring cash flows, a $15 million adjustment due to reinsurance-related charges and $20 million of foreclosure-related charges."
In PHH's earnings statement, CEO Jerry Selitto said it continues to seek ways to stabilize funding sources.
Besides being a mortgage banker, PHH operates a fleet leasing and management business. Profits in its fleet business grew 63% in the quarter on a sequential basis.