This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

PHH to Miss Another Deadline

Mortgage banking firm PHH (PHH - Get Report) needs more time to get its financial affairs in order.

The firm, which was spun off last year by Cendant (CD), says it will miss the June 30 filing deadline for submitting financial statements for the second quarter. PHH previously missed the deadline for filing first-quarter financials and still hasn't filed its 2005 annual report.

The company says it's still reviewing "significant accounting adjustments" that were made in conjunction with the February 2005 spinoff. PHH says the delay in filing its financial statements has led it to obtain a number of waivers from its lenders.

PHH did not say what the waivers involved. But it's not uncommon for loans and corporate bonds to contain provisions that trigger an automatic default, in the event a company is delinquent in filing financial statements.

The problems with PHH's financial affairs may explain why Cendant was unable to find a buyer for the mortgage business. Two years ago, as Cendant was actively shopping the mortgage firm, Countrywide Financial (CFC), Citigroup (C) and JPMorgan Chase (JPM) all passed on the deal. The inability of the real estate and travel conglomerate to unload PHH led it to opt for last year's spinoff.

PHH, meanwhile, also said it has uncovered a number of "material weaknesses" in its financial reporting. The weakness were uncovered as part of the standard review that all companies must now undertake, since the passage of the Sarbanes-Oxley corporate reform law.

"We intend to remediate any material weaknesses and other control deficiencies identified as promptly as possible,'' the company says.

In morning trading, shares of PHH were down 20 cents to $25.86.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
PHH $12.83 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs