PHH Corporation Announces First Quarter 2008 Results

Business Wire, May 9, 2008

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(1) Other assets include intangible assets of $42 million and $43 million as of March 31, 2008 and December 31, 2007, respectively.

(2) Outstanding shares of common stock were 54.137 million and 54.079 million as of March 31, 2008 and December 31, 2007, respectively.

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(1) The following is a reconciliation of Income before income taxes and minority interest to segment profit:

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(2) Net revenues reported under the heading Other for the three months ended March 31, 2008 represent amounts not allocated to our reportable segments, primarily related to the terminated Merger Agreement, and intersegment eliminations. Segment profit of $42 million reported under the heading Other for the three months ended March 31, 2008 represents income related to the terminated Merger Agreement. Segment loss reported under the heading Other for the three months ended March 31, 2007 represents expenses related to the terminated Merger Agreement.

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(1) Represents mortgages that conform to the standards of Fannie Mae, Freddie Mac or Ginnie Mae (collectively, "Government Sponsored Enterprises" or "GSEs").

(2) Represents mortgages that are made to borrowers with prime credit histories, but do not meet the documentation requirements of a GSE loan.

(3) Represents mortgages with origination flaws or performance issues.

(4) Represents primarily first mortgages to be sold under best efforts commitments.

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(1) During the year ended December 31, 2007, the Company sold MSRs; as of March 31, 2008, MSRs associated with $18.6 billion of the unpaid principal balance of underlying mortgage loans are being subserviced by the Company until the MSRs are transferred from the Company's systems to the purchaser's systems, which is expected to occur in the second quarter of 2008. These loans are included in the Company's mortgage loan servicing portfolio balance as of March 31, 2008.

(2) Represents the loan servicing portfolio delinquencies as a percentage of the total number of loans and the total unpaid balance of the portfolio.

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(1) Capacity is dependent upon maintaining compliance with, or obtaining waivers of, the terms, conditions and covenants of the respective agreements. With respect to asset-backed funding arrangements, capacity may be further limited by the availability of asset eligibility requirements under the respective agreements.

(2) Available capacity reflects a reduction in availability due to an allocation against the facilities of $6 million which fully supports the outstanding unsecured commercial paper issued by the Company as of March 31, 2008. Under the Company's policy, all of the outstanding unsecured commercial paper is supported by available capacity under its unsecured committed credit facilities. In addition, utilized capacity reflects $8 million of letters of credit issued under the Amended Credit Facility.