Residential loan production volume has fallen to a small fraction of its year-earlier level at PHH Corp. Delinquency worsened, though the company cut its losses.
Before income taxes, losses from continuing operations at the Mount Laurel, New Jersey-based company came in at $36 million, according to PHH’s second-quarter earnings report.
PHH cut its losses from $75 million during the same three-month period in 2017. But the amount of losses swelled from $26 million during the first-three months of this year.
PHH originated 831 portfolio-retention loans for $0.148 billion, tumbling from the first quarter’s 1,096 loans for $0.208 billion and plunging from overall production of 11,941 loans for $5.482 billion previously reported for the second-quarter 2017.
Second-quarter 2018 refinance share was 89.2 percent, off from 94.2 percent in the preceding quarter.
During the six months ended June 30, 1,927 loans were closed for $0.356 billion.
Third quarter volume is likely similar to the previous period based on interest rate lock commitments, which slipped to $0.131 billion in the second quarter from $0.152 billion in the first quarter.
The total servicing portfolio was 586,609 loans with an aggregate unpaid principal balance of $129.024 billion as of mid-2018 — including 35,667 primary servicing loans and 550,942 in sub-servicing loans. The portfolio was reduced from 648,040 loans for $143.500 billion three months earlier and $730,340 loans for $159.763 billion a year prior.
Thirty-day delinquency finished the first half at 2.27 percent. The rate was just 1.98 percent as of the same date last year.
The foreclosure and bankruptcy rate was cut to 1.46 percent from 1.61 percent.
