PHH Loss Shrinks; Credit Woes Persist

  • Jerome J. Selitto, the newly installed chief executive at PHH Corp., has far-reaching plans to resuscitate the mortgage outsourcer, starting with its funding sources and cost structure.

    October 28

PHH Corp.'s net loss narrowed in the third quarter but the mortgage outsourcer was plagued by credit charges and a drop in the value of its servicing portfolio from higher delinquencies and foreclosures.

The Mount Laurel, N.J. company said Thursday that it lost $52 million, or 94 cents a share, compared with a loss of from $84 million, or $1.56 a share, a year earlier.

The company's mortgage production unit made $46 million, but its mortgage-servicing business lost $139 million from valuation adjustments for higher prepayments and credit-related charges.

PHH also took a $61 million goodwill impairment charge on the mortgage production unit.

Sandra Bell, PHH's chief financial officer, said in a press release that the company expects higher delinquency rates to continue into next year.

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