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Prepays Hurting PHH's Net.(News)
Byline: Brad Finkelstein
Mount Laurel, NJ-PHH Corp. here was a victim of mortgage servicing rights prepayments as the company's first-quarter net income was well below that from the same period one year prior.
The $118 million segment loss for the company's mortgage servicing business more than cancelled out what Terry Edwards, president and chief executive, termed "the strongest quarter since the spin-off" for its mortgage production segment. PHH had been a part of Cendant Corp. until the end of January 2005.
Overall, the company, whose third line of business is fleet management services, earned $2 million, or $0.04 per share, for the first quarter of 2009, down from $30 million, or $0.55 per share, for the first quarter of 2008.
The loss on the servicing side ompares with a loss of $16 million one year prior. Part of the culprit then was that PHH did not hedge its servicing portfolio, something that is still the case today.
In the most recent quarter, PHH took a $71 million non-cash writedown of the MSR asset due to the decline in mortgage rates during the quarter. It also took a $92 million reduction in the value of its MSRs due to prepayments and portfolio decay.
Plus, PHH had foreclosure-related charges of $21 million and reinsurance-related charges of $14 million.
- DCR Rates PHH Corporation's Commercial Paper Program 'D-1' And Senior Debt 'A+'
- Press release article from: PR Newswire April 30, 1998 700+ words
...of December 31, 1997, PHH's mortgage servicing portfolio totaled $29...average of 0.67 percent. PHH's interest rate hedging...The valuation of the mortgage servicing asset is conservative. PHH is active in hedging its...
- Fitch Expects to Rate PHH's Senior Unsecured Debt 'A-'.
- Press release article from: Business Wire January 6, 2005 700+ words
...over the near term. PHH's capital requirements...activities resulting in mortgage servicing rights (MSRs) and...Fitch does not expect PHH's sizable mortgage servicing asset will exhibit...in the near term. PHH funds its operations...
- DCR Lowers PHH Corporation's Senior Debt Rating to 'A' and Reaffirms 'D-1'...
- Press release article from: PR Newswire July 26, 1999 700+ words
...of December 31, 1998, PHH's mortgage servicing portfolio totaled $41...average of 1.14 percent. PHH's interest rate hedging...The valuation of the mortgage servicing asset is conservative. PHH is active in hedging its...
- PHH Corporation Announces Third Quarter 2009 Results.(Financial report)
- Newspaper article from: Investment Weekly News November 21, 2009 700+ words
...Net loss attributable to PHH Corporation for the third quarter...loss per share attributable to PHH Corporation were $(0.94...negative change in the value of mortgage servicing rights ("MSRs") due to...61 million impairment of PHH Home Loans' Goodwill. Consolidated...
- Originations Benefit PHH.
- News wire article from: Mortgage Line June 27, 2008 700+ words
...rates. In the mortgage servicing segment, PHH generated $19...of last year. PHH's mortgage servicing loss was $16 million...delinquency rate on the mortgage servicing portfolio was 2...mortgage business, PHH reported strong...
- PHH Corporation Announces Second Quarter 2009 Results.(Financial report)
- Press release article from: Business Wire August 4, 2009 700+ words
...share attributable to PHH Corporation of $0...greater increase in the mortgage servicing rights ("MSR") mark...share attributable to PHH Corporation of $0...related charges in our Mortgage Servicing segment and increased...president, stated, "PHH's strong second quarter...
- DCR Adds PHH Corporation's Senior Debt Rating to Rating Watch-Down and...
- Press release article from: PR Newswire May 26, 1999 700+ words
...of December 31, 1998, PHH's mortgage servicing portfolio totaled $41...average of 1.14 percent. PHH's interest rate hedging...The valuation of the mortgage servicing asset is conservative. PHH is active in hedging its...
- PHH Corp. must restate earnings.
- Newspaper article from: Baltimore Sun (Baltimore, MD) July 22, 2006 700+ words
...Terrence W. Edwards, PHH's chief executive, said...review, done at the request of PHH's audit committee, found...being counted as cash flow from mortgage servicing, the statement said. "We...recognition." Nancy Kyle, PHH vice president of investor...
Source: HighBeam Research, Prepays Hurting PHH's Net.(News)