PHH Corporation Announces Third Quarter Results

PHH Corporation (NYSE: PHH) ("PHH" or the "Company") today announced financial results for the quarter ended September 30, 2016. For the quarter ended September 30, 2016, the Company reported Net loss attributable to PHH Corporation of $27 million or $0.50 per basic share. For the quarter ended September 30, 2016, core loss (after-tax)* and core loss per share*, which exclude a $13 million pre-tax unfavorable market-related mortgage servicing rights ("MSR") fair value adjustment, net of derivative losses related to MSRs, were $19 million and $0.35, respectively.

Glen A. Messina, President and CEO of PHH Corporation, said, "We have made substantial progress in our evaluation of strategic alternatives and have made two critical decisions. First, we are pleased to announce that we have entered into a definitive agreement to sell substantially all our GNMA MSR portfolio and related servicing advances to Lakeview for a slight premium to book value before considering customary transaction and other expenses. In addition, after exhaustive consideration of the available alternatives, we have decided to exit from the PLS origination business. We are committed to achieving an orderly and well-managed exit in the quickest and most cost effective way possible while meeting our regulatory and contractual requirements. We are continuing to evaluate possible additional sales of our remaining MSR portfolio and to evaluate the best course of action for our Real Estate and servicing platforms, which we expect to complete by the end of January 2017."

Messina also commented, "Our financial performance reflects continued volume reduction from the previously announced Merrill Lynch insourcing decisions and lower revenue and higher expenses related to our owned servicing asset, offset by continued strong momentum in our portfolio recapture initiative and higher loan origination margins. Our increase in legal reserves is a result of continued progress in resolving legacy regulatory matters, which has also led to a reduction in our reasonably possible losses in excess of reserves by $20 million."

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