PHH Corporation

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PHH Corporation
Traded asNYSEPHH
Russell 2000 Component
IndustryFinancial services
3000 Leadenhall Road
Mount Laurel, New Jersey
Key people
Glen A. Messina (CEO)
Robert B. Crowl (CFO)
ProductsMortgage services
Mortgage loans
RevenueDecreaseUS$ 639 million (2014)[1]
Decrease US$ -284 million (2014)[1]
Decrease US$ 87 million (2014)[1]
Total assetsDecrease US$ 4.296 billion (2014)[1]
Total equityDecrease US$ 1,571 billion (2014)[1]

The PHH Corporation is an American financial services corporation headquartered in Mount Laurel, New Jersey[2] which provides mortgage services to some of the world's largest financial services firms.[3] PHH is the biggest U.S. outsourcer of home loans, processes and originates mortgages on behalf of small banks and some of the world’s largest financial firms, including Morgan Stanley and HSBC Holdings Plc.[3]


PHH was founded by Duane Peterson, Harley Howell and Richard Heather in 1946 in Mount Laurel, New Jersey and incorporated in 1953 as a Maryland corporation[1] providing mortgage services, employee relocation services, fleet management services.

Between April 30, 1997 and February 1, 2005, PHH was a wholly owned subsidiary of Cendant Corporation (now known as Avis Budget Group) and its predecessors that provided mortgage banking services, facilitated employee relocations and provided vehicle fleet management and fuel card services.

On February 1, 2005, as a result of a Cendant spin-off, PHH began operating as an independent, publicly traded company under the stock symbol NYSEPHH.

On July 1, 2014, all issued and outstanding equity interests in their Fleet Management Services business and related fleet entities were sold to Element Financial Corporation, for a purchase price of $1.4 billion. The Fleet business was focused on providing commercial fleet management services to corporate clients and government agencies throughout the U.S. and Canada which included fleet leasing services and additional services and products for vehicle maintenance, accident management, driver safety training and fuel cards. The transaction resulted in a $241 million net gain on sale reported on the 2014 Annual Report.[2]

In November 2014, an Administrative law judge decided that PHH had paid illegal kickbacks in violation of the Real Estate Settlement Procedures Act by referring consumers to mortgage insurers who would pay a reinsurance premium to a PHH subsidiary, fining the company $6.5 million.[4] PHH appealed to Consumer Financial Protection Bureau Director Richard Cordray, who on June 4, 2015, adopted a new reinterpretation broadening RESPA, made a new finding that the statute of limitations did not apply to the CFPB, and ordered PHH to disgorge $109 million.[5]

The United States Court of Appeals for the District of Columbia Circuit stayed Director Cordray’s decision in August, 2015. On October 11, 2016, the circuit court vacated and remanded Director Cordray’s decision, writing that “The CFPB’s order violated bedrock principles of due process”.[6] Circuit Judge Brett Kavanaugh, joined by Senior Circuit Judge A. Raymond Randolph, made the additional finding that the unusual statute making the CFPB Director removable only for cause was unconstitutional, and the President of the United States can remove the Director at will, over a partial dissent by Circuit Judge Karen L. Henderson.[7]


  1. ^ a b c d e f "2014 Form 10-K, PHH Corporation". United States Securities and Exchange Commission.
  2. ^ a b "Company Overview, PHH Corporation". PHH Corporation.
  3. ^ a b "Banks Burdened With Compliance Costs Outsource Home Loans, Kathleen M. Howley". Bloomberg Business.
  4. ^ "CFPB Director Cordray Issues Decision in PHH Administrative Enforcement Action". Press Release. Consumer Financial Protection Bureau. 4 June 2015. Retrieved 18 October 2016.
  5. ^ Bruce, Chris (11 October 2016). "CFPB Loss in PHH Case Opens Door for More Enforcement Fights". Bloomberg BNA. Retrieved 18 October 2016.
  6. ^ Woellert, Lorraine (11 October 2016). "Conservatives win big in landmark ruling against Consumer Finance Protection Bureau". Politico. Retrieved 18 October 2016.
  7. ^ Cowley, Stacy (12 October 2016). "Court Upholds Consumer Agency, Minus Its Leader's Job Security". The New York Times. p. B2. Retrieved 18 October 2016.

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