As losses worsened from a year earlier at the parent of PHH Mortgage, loan originations diminished, and the servicing portfolio was slashed. A further decline in production is likely.
In its third-quarter earnings report, parent PHH Corp. disclosed a $78 million loss before income taxes for the three months that concluded on Sept. 30.
Losses at the Mount Laurel, New Jersey-based firm worsened from $29 million in the same three months last year. But they subsided from $83 million during the prior three-month period.
Residential loan production came to 10,643 units for $4.944 billion. Originations fell from 11,941 loans for $5.482 billion in the second quarter and plunged from 21,076 loans closed for $10.017 billion in the third-quarter 2016.
From
Jan. 1, 2017, until Sept. 30, PHH funded 35,071 loans for $16.295 billion.
Refinance share was 38.1 percent, widening from 35.1 percent three months earlier.
All of PHH’s business was generated through the retail channel.
Fourth-quarter originations are likely to be even lower based on total applications, which dropped to $5.7 billion in the third quarter from $7.0 billion the prior period.
“We believe we are well-positioned to capture market opportunities due to the quality of our servicing and portfolio retention platforms, robust compliance framework and available capacity,” PHH Corp. President and Chief Executive Officer Robert B. Crowl said in the report. “We are still in the early stages of these organic growth initiatives, and the success of our business development effort will be critical to achieving our business and financial executives.”
PHH revealed an owned servicing portfolio of 45,677 loans with a collective unpaid principal balance of $9.663 billion as of the most-recent date. The portfolio plummeted from 379,231 loans for $54.693 as of mid-2017 and 588,700 mortgages for $89.598 billion on the same date in 2016.
In addition, PHH maintained a sub-servicing portfolio of 648,108 loans for $90,354 billion as of Sept. 30, 2016.
PHH reported a capitalized servicing rate of 0.83 percent and a weighted-average servicing fee of 27 basis points.
Thirty-day delinquency, excluding foreclosures and bankruptcies, finished September 2017 at
2.34 percent. The rate worsened from 1.98 percent as of June 30, 2017, and 2.24 percent at the end of the third quarter of last year.
Most recently, the rate of foreclosures and bankruptcies was 1.55 percent.
