$9.4 billion 1st quarter production
By MortgageDaily.com staff
5/13/2005

In its first quarterly earnings announcement as a separate, publicly traded company, the parent of the company formerly known as Cendant Mortgage reported a decline in production.

PHH Corp., parent of PHH Mortgage, announced first quarter fundings of $9.4 billion, off from $11.0 billion during the fourth quarter and $11.3 billion a year ago.

Originations have declined for three consecutive quarters.

"Production losses were expected as the company maintained capacity in anticipation of the addition of new private label partners," the Mt. Laurel, N.J.-based company said in the earnings announcement.

Purchases accounted for 65% of production, the statement said, and refinances accounted for 35%.

The total servicing portfolio was $146.0 billion as of Mar. 31, PHH -- which was spun off from Cendant Corp. in January -- reported, up from an average servicing portfolio of $142.3 billion the prior period. The portfolio included $134.5 billion in conventional loans, $7.7 billion in FHA/VA loans and $3.9 billion in home equity lines of credit.

PHH said the mix on it's portfolio was 57% fixed rate and 43% adjustable rate, while the weighted average note rate was 5.5%.

The 90+ day delinquency was 0.2%, according to the announcement, while the rate for foreclosure, REO and bankruptcy loans was 0.6%.

"We are encouraged by the discussions we are having with potential clients in our mortgage business and are happy to announce that Cendant has agreed to extend the minimum term of our joint venture from 10 years to 12 years," President and CEO Terry Edwards said in the announcement.

Parent PHH said overall earnings were a loss of $250 million including discontinued operations. Pretax income of $61 million was contributed by the mortgage services segment, with servicing more than offsetting a $26 million loss from production.

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