Quarterly residential loan originations were weaker at PHH Mortgage. As well, other business metrics such as servicing, delinquency and income were down.
From July 1 to Sept. 30, the Mount Laurel, New Jersey-based company closed 25,383 residential loans at $10.337 billion.
PHH’s mortgage production data and other financial information were gathered from the third-quarter earnings report provided by parent company PHH Corp.
Mortgage originations slowed from the second quarter, when 28,466 units were originated for $12.073 billion.
“The decrease in total closing compared to the second quarter of 2015 was primarily attributable to the short-term decrease in interest rates during the early part of 2015 that led to a brief increase in refinance application volumes,” PHH’s earnings announcement said.
Home lending activity did pick up compared to 25,633 loans closed at $9.885 billion in the third-quarter 2015.
For the nine months ended September 2015, originations came to 76,389 loans funded for $31.762 billion.
The most-recent quarterly total consisted of $2.296 billion from retail production, down from the second quarter’s $2.803 billion. Another $7.600 billion came from private-label services, also down from $8.889 billion three months earlier.
But business from wholesale-correspondent
climbed to $0.441 billion from $0.381 billion the previous quarter.
.
Mortgage applications dropped to $12.2 billion from $14.0 billion in the second quarter, with the retail-real estate unit contributing the most to the decline. Interest rate lock commitments slipped to $1.7 billion from $2.2 billion.
PHH reported it had “completed negotiations and executed revised agreements with PLS clients representing 72 percent of our 2014 PLS closing volume.” The company said it believed negotiations with one client, comprising around 25 percent of total 2014 PLS closing volume, was “substantially complete.”
As of Sept. 30, PHH serviced 658,051 loans for $102.945 billion.
The servicing portfolio thinned from 675,587 loans for $106.200 billion in the prior report and 756,090 loans for $120.868 billion in the year-earlier report.
The mortgage provider also sub-serviced 449,209 loans for $124.004 as of the last day in September.
Thirty-day delinquency, excluding foreclosures and real estate owned, increased by nine basis points from the second quarter to 2.56 percent. Still, delinquency was 55 basis points improved from the rate reported as of the same point a year prior.
At the end of September this year, the rate of foreclosure/REO was 1.73 percent, an improvement over 1.82 percent rate reported as of the end of June and 2.12 percent documented as of Sept. 30, 2014.
The $87 million loss from continuing operations before income taxes widened from a $74 million loss in the second quarter but was cut from the $129 million loss at the same point last year. Recent earnings included a $44 million pre-tax provision for legal and regulatory reserves.
Concerning the $109 million order from the Consumer Financial Protection Bureau announced in June, PHH reported filing its opening brief with the District of Columbia Court of Appeals.
