PHH Turns to Loss on Mortgage Woes

PHH Corp., Mt. Laurel, N.J., lost $38 million in the third quarter as trouble in the mortgage sector hurt the company's business.The company's "segment loss" from mortgage production in the third quarter totaled $113 million, more than double the loss posted in the third quarter of 2006. A $79 million loss on the sale of loans was primarily responsible for the weak performance, the company said. PHH also suffered a $2 million segment loss related to loan servicing in the third quarter. The company serviced $166.9 billion of loans, including subservicing, in the third quarter. The portfolio had a 2.6% delinquency rate. During the third quarter, PHH sold servicing rights on $9.6 billion of loans. The company can be found online at http://www.phh.com.