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.