Although home lending activity was stronger at PHH Mortgage, the servicing portfolio shrank, delinquency deteriorated and earnings swung to a loss.
Residential loan originations from April 1 through June 30 totaled 28,466 units for $12.073 billion.
The mortgage production numbers and other financial data were disclosed by parent PHH Corp. in its second-quarter earnings report.
Business moved up from the first quarter, when 22,540 home loans were closed for $9.352 billion.
Activity also accelerated from the second quarter of last year, when production totaled 24,573 loans for $9.294 billion.
First-half 2015 originations amounted to 51,006 loans funded for $21.425 billion.
Retail production accounted for $2.803 billion of the latest quarterly activity, while private-label services generated $8.889 billion and wholesale-correspondent volume was $0.381 billion.
Application volume fell to $14.0 billion from $15.2 billion in applications during the first-three months of this year, with the decline primarily coming from the PLS unit. Interest rate lock commitments inched up to $2.2 billion from $2.1 billion.
PHH noted that it has signed agreements with PLS clients representing half of last year’s PLS originations and expects to execute revised agreements during the current quarter with clients representing 47 percent of 2014 closing volume.
However, one client that generated three percent of last year’s PLS originations will now handle loan production in-house.
The Mount Laurel, New Jersey-based company reported that it serviced 675,587 loans for $106.200 billion as of June 30, 2015.
The servicing portfolio contracted from 697,090 loans for $111.260 billion in the prior report and
778,108 loans for $125.181 billion in the year-earlier report.
Another 439,137 loans for
$119.027 billion were sub-serviced as of the most-recent date.
Thirty-day delinquency, excluding foreclosures and real estate owned, worsened, rising 10 basis points from the first quarter to 2.47 percent.
But delinquency was down from 3.06 percent as of the same date last year.
The rate of foreclosure/REO was 1.82 percent as of June 30, 2015.
Pre-tax earnings from continuing operations swung to a $74 million loss from a $31 million first-quarter profit. In the second-quarter 2014, there was a $21 million loss.
The latest quarterly earnings included a $34 million
provision for legal and regulatory reserves.
PHH reported that it is appealing the $109 million order announced in June by the Consumer Financial Protection Bureau in the federal appellate court system. It does not have to place the $109 million in escrow.
