As the parent of PHH Mortgage continues to execute on its strategy to shrink its mortgage business, losses grew from a year earlier as originations and servicing were slashed.
Mount Laurel, New Jersey-based PHH Corp. reported in its second-quarter earnings results an $83 million loss before income taxes during the three months ended mid-2017.
Losses widened from $20 million during the same three months last year. But an improvement was noted from the $105 million loss in the preceding three-month period.
Single-family lending activity came to 11,941 loans for $5.482 billion during the period from April 1, 2017, through June 30. All of the loans closed were originated through the retail channel.
Business receded from 12,487 loans for $5.869 billion in the first quarter and plunged from 22,200 loans for $10.372 billion in the second-quarter 2016.
For all six months that have been reported so far in 2017, production amounted to 24,428 units for $11.351 billion.
Second-quarter 2017 refinance share was 35.1 percent,
thinning from 54.6 percent the previous quarter.
Mortgage production during the current quarter is likely holding up based on total applications, which inched up to $7.0 billion in the second quarter from $6.9 billion in the first quarter.
An even bigger gain in originations is likely based on interest rate lock commitments expected to close, which jumped to $0.8 billion from $0.5 billion.
PHH said it serviced 379,231 loans with an aggregate unpaid principal balance of $54.693 as of the midpoint of this year. The primary servicing portfolio was cut from 486,706 loans for $72.503 billion three months earlier and slashed from 609,976 loans for $93.674 billion one year earlier.
PHH said its capitalized servicing rate was 0.83 percent as of June 30, 2017, while its weighted-average servicing fee was 27 basis points.
The initial sale of the previously announced sale of mortgage servicing rights on Fannie Mae and Freddie Mac loans to New Residential Investment Corp. were closed in June and July.
In addition, PHH maintained a subservicing portfolio of 351,109 loans for $105.070 billion at the end of the first half.
At the close of the second quarter, 30-day delinquency stood at 1.98 percent. The rate worsened from 1.94 percent three months earlier but has improved from 2.21 percent one year earlier.
