PHH narrows loss in third quarter

PHH Corp., a Mount Laurel mortgage lender, reported a smaller third-quarter loss compared with a year ago, as better profit margins on mortgage loans and higher volumes offset a bigger decline in the value of its mortgage servicing rights.

PHH, which also owns a vehicle fleet management company, reported a net loss of $52 million in the quarter on revenues of $507 million, compared with a net loss of $84 million on revenues of $533 million a year ago.

The company closed 39,161 mortgages totaling $9 billion in the three months ended Sept. 30, up from 34,499 mortgages totaling $7.85 billion in the same period last year.

PHH's mortgage servicing business lost $139 million in the quarter, in part because of a $50 million reduction in value due to prepayments and a $47 million reduction because of rising delinquencies and foreclosures.

During the quarter, PHH raised $1.16 billion to fund its operations.

Company shares were trading at $15.19, down 67, early this afternoon.