PHH Corp. reported losses of $62 million for the second quarter, driven by major increases in operating expenses and a $46 million loss in the servicing segment.
The $62 million quarterly loss is a 377% increase from the same period last year, when the mortgage company lost $13 million.
Despite the loss, net revenue for the Mount Laurel, N.J.-based company rose 21%, to $237 million, thanks to a 47% gain in origination and other loan fees which PHH credited to an increase in private-label revenue increases. Total mortgage closings rose 30% to $12.1 billion.
Expenses rose 43% to $311 million primarily due to other operating expenses, which rose nearly 600% to $89 million.
"One year ago we completed the sale of our Fleet business and presented a strategic plan to revise our capital structure, re-engineer our business and position the company for growth. We have continued to execute on these strategies during the second quarter of 2015 through the substantial conclusion of our private-label contract renegotiations and the achievement of nearly 50% of our annualized targeted re-engineering benefits," said PHH president and chief executive Glen Messina in a release.
"While we have made good progress on our re-engineering activities, we have more work to do," he continued.
