Exhibit 99.1

CORRECTING and REPLACING PHH Corporation Announces Results for
Fourth Quarter and Full Year 2010
2010 Core Earnings (after-tax)* Exceed 2009 by 18%

	•		Fourth quarter 2010 consolidated GAAP net income attributable to PHH Corporation of $181 million and basic earnings per share attributable to PHH Corporation of $3.26, up from $97 million and $1.76 per share, respectively, in the fourth quarter of 2009, driven by a $287 million pre-tax, market-related fair value adjustment on mortgage servicing rights (MSRs)
	•		Full year 2010 consolidated GAAP net income attributable to PHH Corporation of $48 million and basic earnings per share attributable to PHH Corporation of $0.87, down from $153 million and $2.80 per share, respectively, in 2009
	•		Fourth quarter 2010 core earnings (after-tax)* of $17 million and core earnings per share* of $0.31, down from $55 million and $0.99, respectively, in the fourth quarter of 2009
	•		Full year 2010 core earnings (after-tax) of $167 million and core earnings per share of $3.01, up from $142 million and $2.60, respectively, in 2009
	•		Results reflect success in increasing mortgage market share, improving operating efficiencies, and earnings growth in Fleet Management segment

CORRECTION...by PHH Corporation

MT. LAUREL, N.J.—(BUSINESS WIRE)— Please replace the release dated Feb. 28, 2011 with the following corrected version. Under the Summary Consolidated Results table, revisions have been made to the second bullet under Fourth Quarter — 2010 and to the second bullet under Full Year — 2010.

The corrected release reads:

PHH Corporation Announces Results for Fourth Quarter and Full Year 2010
2010 Core Earnings (after-tax)* Exceed 2009 by 18%

	•		Fourth quarter 2010 consolidated GAAP net income attributable to PHH Corporation of $181 million and basic earnings per share attributable to PHH Corporation of $3.26, up from $97 million and $1.76 per share, respectively, in the fourth quarter of 2009, driven by a $287 million pre-tax, market-related fair value adjustment on mortgage servicing rights (MSRs)
	•		Full year 2010 consolidated GAAP net income attributable to PHH Corporation of $48 million and basic earnings per share attributable to PHH Corporation of $0.87, down from $153 million and $2.80 per share, respectively, in 2009
	•		Fourth quarter 2010 core earnings (after-tax)* of $17 million and core earnings per share* of $0.31, down from $55 million and $0.99, respectively, in the fourth quarter of 2009
	•		Full year 2010 core earnings (after-tax) of $167 million and core earnings per share of $3.01, up from $142 million and $2.60, respectively, in 2009

•

Results reflect success in increasing mortgage market share, improving operating efficiencies, and earnings growth in Fleet Management segment

Mt. Laurel, NJ, February 28, 2011 (Business Wire) — PHH Corporation (NYSE: PHH) (“PHH” or the “Company”) today announced results for the three months and year ended December 31, 2010.

Jerry Selitto, president and chief executive officer, commented, “Our strong 2010 full year core after-tax earnings reflect our success in increasing mortgage market share, strengthening operating efficiencies, and improving earnings in our Fleet Management Services segment. Despite a challenging year for the mortgage industry, our overall mortgage origination volume was up 30% in 2010 at $49 billion, versus $38 billion in 2009, as we increased market share from 2.1% in 2009 to 3.1% in 2010. The aggregate unpaid principal balance of loans included in our mortgage servicing portfolio increased almost $15 billion during the year, from $151 billion at year-end 2009 to $166 billion at year-end 2010, while the weighted average interest rate dropped nearly 40 basis points to 4.9% as of year-end. Fleet segment profit showed significant improvement versus 2009, up 67% for the quarter and 17% for the full year.

“Mortgage foreclosure related charges were $21 million during the fourth quarter 2010, up from $11 million in the comparable 2009 quarter, but were comparable on a full year basis at $72 million in 2010 versus $70 million in 2009. Total mortgage servicing portfolio delinquencies also showed improvement, standing at 4.24% at the end of 2010, compared to 4.92% at the end of 2009.

“2010 marked an important first step in the transformation of PHH, as we deepened market penetration, improved net margins, and through our transformation initiative, enhanced efficiencies and achieved approximately $88 million of annualized run-rate savings. In 2011, we expect to reinvest some of these savings in strengthening our capabilities in sales, marketing and enterprise risk management, while building scalability through technology. We remain committed to delivering sustainable, profitable growth within our risk guidelines by continuing to focus on improving productivity, expanding market share for mortgage originations and servicing, and increasing profitability in our Fleet Management Services segment.”

Summary Consolidated Results
(In millions, except per share data)

		Three Months Ended								Year Ended
		December 31,								December 31,
		2010				2009				2010				2009
Net revenues		$	918			$	744			$	2,438			$	2,606
Income before income taxes			313				169				115				280
Net income attributable to PHH Corporation			181				97				48				153
Basic earnings per share attributable to PHH Corporation		$	3.26			$	1.76			$	0.87			$	2.80
Non-GAAP Results*
Core earnings (pre-tax)		$	31			$	90			$	289			$	240
Core earnings (after-tax)			17				55				167				142
Core earnings per share		$	0.31			$	0.99			$	3.01			$	2.60

Consolidated Results

     Fourth Quarter — 2010

	•		Net revenues and Income before income taxes for the fourth quarters of 2010 and 2009 included market-related changes in fair value of the MSRs of $287 million and $96 million, respectively
	•		Both Income before income taxes and Core earnings (pre-tax) during the fourth quarter of 2010 were impacted by unfavorable changes in value of mortgage loans held for sale and related derivatives and higher prepayments in the mortgage loan servicing portfolio that were partially offset by improving Fleet leasing margins

     Full Year — 2010

	•		Net revenues and income before income taxes for the years ended December 31, 2010 and 2009 included market-related changes in fair value of the MSRs of $(166) million and $111 million, respectively
	•		Both Income before income taxes and Core earnings (pre-tax) during the year ended December 31, 2010 were impacted by significantly higher interest rate lock commitments, lower prepayments in our mortgage servicing portfolio and improving Fleet leasing margins

SEGMENT RESULTS — FOURTH QUARTER
(In millions)

		Fourth Quarter 2010																								Fourth
										Combined				Fleet												Quarter
		Mortgage				Mortgage				Mortgage				Management												2009
		Production				Servicing				Services				Services								Total PHH				Total PHH
		Segment				Segment				Segments				Segment				Other				Corporation				Corporation
Net fee income		$	98			$	—			$	98			$	41			$	—			$	139			$	97
Fleet lease income			—				—				—				340				—				340				354
Gain on mortgage loans			126				—				126				—				—				126				160
Mortgage net finance expense			(3	)			(12	)			(15	)			—				(1	)			(16	)			(19	)
Loan servicing revenues (1)			—				114				114				—				—				114				114
Net reinsurance (loss) income			—				(2	)			(2	)			—				—				(2	)			8
MSRs prepayments and recurring cash flows(2)			—				(77	)			(77	)			—				—				(77	)			(57	)
Other income			—				—				—				18				—				18				16
Core revenue*			221				23				244				399				(1	)			642				673
MSRs fair value adjustments:
Market-related(3)			—				287				287				—				—				287				96
Credit-related(4)			—				(11	)			(11	)			—				—				(11	)			(25	)
Net revenues			221				299				520				399				(1	)			918				744
Depreciation on operating leases			—				—				—				303				—				303				305
Fleet interest expense			—				—				—				20				(1	)			19				17
Foreclosure-related charges			—				21				21				—				—				21				11
Other expenses			182				27				209				51				2				262				242
Total expenses			182				48				230				374				1				605				575
Income (loss) before income taxes			39				251				290				25				(2	)		$	313			$	169
Less: income attributable to noncontrolling interest			6				—				6				—				—
Segment profit (loss)		$	33			$	251			$	284			$	25			$	(2	)

SEGMENT RESULTS — FULL YEAR
(In millions)

		2010
										Combined				Fleet
		Mortgage				Mortgage				Mortgage				Management												2009
		Production				Servicing				Services				Services								Total PHH				Total PHH
		Segment				Segment				Segments				Segment				Other				Corporation				Corporation
Net fee income		$	291			$	—			$	291			$	157			$	—			$	448			$	425
Fleet lease income			—				—				—				1,370				—				1,370				1,441
Gain on mortgage loans			635				—				635				—				—				635				610
Mortgage net finance expense			(16	)			(54	)			(70	)			—				(3	)			(73	)			(58	)
Loan servicing revenues (1)			—				434				434				—				—				434				436
Net reinsurance loss			—				(19	)			(19	)			—				—				(19	)			(5	)
MSRs prepayments and recurring cash flows(2)			—				(225	)			(225	)			—				—				(225	)			(300	)
Other income			1				3				4				66				—				70				37
Core revenue*			911				139				1,050				1,593				(3	)			2,640				2,586
MSRs fair value adjustments:
Market-related(3)			—				(166	)			(166	)			—				—				(166	)			111
Credit-related(4)			—				(36	)			(36	)			—				—				(36	)			(91	)
Net revenues			911				(63	)			848				1,593				(3	)			2,438				2,606
Depreciation on operating leases			—				—				—				1,224				—				1,224				1,267
Fleet interest expense			—				—				—				94				(3	)			91				89
Foreclosure-related charges			—				72				72				—				—				72				70
Other expenses			615				106				721				212				3				936				900
Total expenses			615				178				793				1,530				—				2,323				2,326
Income (loss) before income taxes			296				(241	)			55				63				(3	)		$	115			$	280
Less: income attributable to noncontrolling interest			28				—				28				—				—
Segment profit (loss)		$	268			$	(241	)		$	27			$	63			$	(3	)

Mortgage Production Segment

     Fourth Quarter — 2010

	•		The mortgage production segment continued to generate strong volumes as interest rate lock commitments expected to close increased by $3.0 billion (48%) during the fourth quarter of 2010 compared to the same period in 2009
	•		Total mortgage closing volumes increased and were driven by the increase in the mix of wholesale/correspondent closings to 39% during the fourth quarter of 2010 from 20% during the same period in 2009, which represents the execution of our strategy to expand on this channel in 2010 and grow market share
	•		The trend of higher margins continued into the fourth quarter; however, margins came under pressure as the fourth quarter progressed and there was significant margin contraction late in the fourth quarter, which has continued into the early part of 2011
	•		The increase in mortgage interest rates and associated volatility late in the fourth quarter of 2010 caused a $5 million unfavorable change in fair value of mortgage loans held for sale and related derivatives during the fourth quarter of 2010, compared to a $35 million favorable change during the same period in 2009

     Full Year — 2010

	•		The mortgage production segment generated strong volumes as interest rate lock commitments expected to close increased by $12.1 billion (46%) during the year ended December 31, 2010 compared to the same period in 2009
	•		Total mortgage closing volumes increased and were driven by the increase the mix of wholesale/correspondent closings to 32% during the year ended December 31, 2010 from 15% during the same period in 2009, which represents the execution of our strategy to expand on this channel in 2010 and grow market share
	•		Total loan margins during the year ended December 31, 2010 were lower than the same period in 2009 due to the lower value of initial capitalized MSRs resulting from continuing reductions in mortgage interest rates that occurred throughout most of 2010.

Mortgage Servicing Segment

     Fourth Quarter — 2010

	•		The loan servicing portfolio continued to grow as additions to the portfolio exceeded actual prepayments and the average loan servicing portfolio increased by $12.1 billion (8%) during the fourth quarter of 2010 compared to the same period in 2009
	•		There was a significant amount of refinance activity, which led to increased prepayments in the mortgage loan servicing portfolio and a $67 million decrease in MSR value from actual prepayments of the underlying mortgage loans during the fourth quarter of 2010 compared to $44 million during the same period in 2009
	•		The fair value of MSRs increased by $287 million and $96 million in the fourth quarters of 2010 and 2009 respectively due to changes in market-related inputs and assumptions. The change in the fair value of MSRs was positively impacted in both periods by increases in mortgage interest rates
	•		Foreclosure costs increased to $21 million during the fourth quarter 2010, from $11 million during the same period in 2009 due to higher loss provisions from an increase in loan repurchases and indemnifications

     Full Year — 2010

	•		The loan servicing portfolio grew as additions to the portfolio exceeded actual prepayments and the average loan servicing portfolio increased by $7.2 billion (5%) during the year ended December 31, 2010 compared to the same period in 2009
	•		The fair value of our MSRs declined by $166 million during the year ended December 31, 2010 compared to an increase of $111 million during the same period in 2009 due to changes in market-related inputs and assumptions and was primarily impacted in both periods by changes in mortgage interest rates
	•		Foreclosure costs were $72 million during the year ended December 31, 2010 compared to $70 million during the same period in 2009

Fleet Management Services Segment

     Fourth Quarter — 2010

•

The results during the fourth quarter of 2010 as compared to the same period in 2009 were positively impacted by growth in our principal fee-based products and our focus on cost reductions

	•		During the fourth quarter of 2010 all of our principal fee-based products experienced growth and were led by a 17% increase in average maintenance service cards outstanding during the fourth quarter of 2010 compared to the same period in 2009
	•		Average leased units decreased 6% as existing clients have reduced fleets due to the current economic conditions and we continue to realize the impact of non-renewals of lease arrangements in prior years

     Full Year — 2010

	•		The results during the year ended December 31, 2010 as compared to the same period in 2009 were positively impacted by improvement in leasing margins and our focus on cost reductions
	•		Average leased units decreased 8% as existing clients have reduced fleets due to the current economic conditions and we continued to realize the impact of non-renewal of lease arrangements in previous years

*		Note Regarding Non-GAAP Financial Measures

Core earnings (loss) (pre-tax and after-tax), core earnings (loss) per share, and core revenues, are financial measures that are not in accordance with GAAP. See Non-GAAP Reconciliations at the back of this release for a reconciliation of these measures to the most directly comparable GAAP financial measures.

Core earnings (loss) (pre-tax and after-tax), core earnings (loss) per share, and core revenues measure the Company’s financial performance excluding certain unrealized changes in value of mortgage servicing rights that are based upon projections of future voluntary and involuntary prepayments.

The unrealized changes in value of our mortgage servicing rights for voluntary and involuntary prepayments are reflected as market-related and credit related fair value adjustments, respectively. Core earnings (loss) (pre-tax and after-tax), core earnings (loss) per share, and core revenues may also include other adjustments, as applicable based upon facts and circumstances, consistent with the intent of providing investors a means of evaluating our core operating performance.

The Company believes that these Non-GAAP Financial Measures can be useful to investors because they provide a means by which investors can evaluate the Company’s underlying key drivers and operating performance of the business, exclusive of certain adjustments and activities that investors may consider to be unrelated to the underlying economic performance of the business for a given period.

The Company also believes that any meaningful analysis of the Company’s financial performance by investors requires an understanding of the factors that drive the underlying operating performance which can be obscured by significant unrealized changes in value of our mortgage servicing rights in a given period that is included in Segment profit (loss), Income (loss) before income taxes, Net income (loss) attributable to PHH Corporation and Basic earnings (loss) per share attributable to PHH Corporation in accordance with GAAP.

Use of Core Earnings by Management

The unrealized changes in the value of mortgage servicing rights are based upon numerous assumptions, which include estimated changes in future prepayments that may or may not be actually realized in the future. The market-related fair value adjustments are based upon assumptions of future interest rates, the shape of the yield curve, volatility and other factors. The credit-related fair value adjustments are based upon projected levels of delinquencies and foreclosures that are assumed to remain at current period-end levels throughout the life of the asset for purposes of modeling the expected future cash flows of the mortgage servicing rights. Value lost from actual voluntary and involuntary prepayments are recorded when the underlying loans actually prepay or when foreclosure proceedings are complete, and are included in core earnings based on the current value of the mortgage servicing rights.

The Company manages the business and has designed certain management incentives based upon the achievement of core earnings targets. In addition, the Company believes that it will likely replenish most, if not all, realized value lost from changes in value from actual prepayments through new loan originations and actively manages and monitors economic replenishment rates to measure our ability to continue to do so. Therefore, management does not believe the unrealized change in value of the mortgage servicing rights is representative of the economic change in value of the business as a whole. The presentation of core earnings is designed to more closely align the timing of recognizing the actual value lost from prepayments in the mortgage servicing segment with the associated value created through new originations in the mortgage production segment.

Limitations on the Use of Core Earnings and Core Revenues

Since core earnings (loss) (pre-tax and after-tax), core earnings (loss) per share and core revenues measure the Company’s financial performance excluding certain unrealized changes in value of mortgage servicing rights, they may not reflect the rate of value lost on subsequent actual payments or prepayments over time. As such, core earnings (loss) (pre-tax and after-tax), core earnings (loss) per share and core revenues may tend to overstate operating results in a declining interest rate environment and understate operating results in a rising interest rate environment.

Core earnings (loss) (pre-tax and after-tax), core earnings (loss) per share and core revenues involves differences from Segment profit (loss), Income (loss) before income taxes, Net income (loss) attributable to PHH Corporation, Basic earnings (loss) per share attributable to PHH Corporation and Net revenues computed in accordance with GAAP. Core earnings (loss) (pre-tax and after-tax), core earnings (loss) per share and core revenues should be considered as supplementary to, and not as a substitute for, Segment profit (loss), Income (loss) before income taxes, Net income (loss) attributable to PHH Corporation, Basic earnings (loss) per share attributable to PHH Corporation or Net revenues computed in accordance with GAAP as a measure of the Company’s financial performance.

About PHH Corporation

Headquartered in Mount Laurel, New Jersey, PHH Corporation is a leading outsource provider of mortgage and vehicle fleet management services. Its subsidiary, PHH Mortgage, is one of the top five retail originators of residential mortgages in the United States¹, and its subsidiary, PHH Arval, is a leading fleet management services provider in the United States and Canada. For additional information about the Company and its subsidiaries, please visit the Company’s website at Error! Hyperlink reference not valid..

Forward-Looking Statements

Certain statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, forward looking statements are not based on historical facts but instead represent only our current beliefs regarding future events. All forward-looking statements are, by their nature, subject to risks, uncertainties and other factors. Investors are cautioned not to place undue reliance on these forward-looking statements. You should understand that these statements are not guarantees of performance or results and are preliminary in nature. Statements preceded by, followed by or that otherwise include the words “expects”, “anticipates”, “intends”, “projects”, “estimates”, “plans”, “may increase”, “may result”, “will result”, “may fluctuate” and similar expressions or future or conditional verbs such as “will”, “should”, “would”, “may” and “could” are generally forward-looking in nature and not historical facts.

You should consider the areas of risk described under the heading “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in our periodic reports filed with the Securities and Exchange Commission under the Exchange Act, including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, in connection with any forward-looking statements that may be made by us and our businesses generally. Except for our ongoing obligations to disclose material information under the federal securities laws, applicable stock exchange listing standards and unless otherwise required by law, we undertake no obligation to release publicly any updates or revisions to any forward-looking statements or to report the occurrence or non-occurrence of anticipated or unanticipated events.

Contact Information:
Jonathan T. McGrain
856-917-0066

PHH CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)

		Three Months
		Ended December 31,								Full Year
		2010				2009				2010				2009
Revenues
Mortgage fees		$	98			$	59			$	291			$	275
Fleet management fees			41				38				157				150
Net fee income			139				97				448				425
Fleet lease income			340				354				1,370				1,441
Gain on mortgage loans, net			126				160				635				610
Mortgage interest income			41				19				110				89
Mortgage interest expense			(57	)			(38	)			(183	)			(147	)
Mortgage net finance expense			(16	)			(19	)			(73	)			(58	)
Loan servicing income			112				122				415				431
Change in fair value of mortgage servicing rights			199				14				(427	)			(280	)
Net loan servicing income (loss)			311				136				(12	)			151
Other income			18				16				70				37
Net revenues			918				744				2,438				2,606
Expenses
Salaries and related expenses			137				125				497				482
Occupancy and other office expenses			15				16				60				59
Depreciation on operating leases			303				305				1,224				1,267
Fleet interest expense			19				17				91				89
Other depreciation and amortization			5				6				22				26
Other operating expenses			126				106				429				403
Total expenses			605				575				2,323				2,326
Income before income taxes			313				169				115				280
Income tax expense			126				64				39				107
Net income			187				105				76				173
Less: net income attributable to noncontrolling interest			6				8				28				20
Net income attributable to PHH Corporation		$	181			$	97			$	48			$	153
Basic earnings per share attributable to PHH Corporation		$	3.26			$	1.76			$	0.87			$	2.80
Diluted earnings per share attributable to PHH Corporation		$	3.25			$	1.74			$	0.86			$	2.77

PHH CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)

		December 31,				December 31,
		2010				2009
ASSETS
Cash and cash equivalents		$	195			$	150
Restricted cash, cash equivalents and investments			531				596
Mortgage loans held for sale			4,329				1,218
Accounts receivable, net			573				469
Net investment in fleet leases			3,492				3,610
Mortgage servicing rights			1,442				1,413
Property, plant and equipment, net			46				49
Goodwill			25				25
Other assets(1)			637				593
Total assets		$	11,270			$	8,123
LIABILITIES AND EQUITY
Accounts payable and accrued expenses		$	521			$	495
Debt			8,085				5,160
Deferred income taxes			728				702
Other liabilities			358				262
Total liabilities			9,692				6,619
Commitments and contingencies			—				—
Total PHH Corporation stockholders’ equity			1,564				1,492
Noncontrolling interest			14				12
Total equity			1,578				1,504
Total liabilities and equity		$	11,270			$	8,123

PHH CORPORATION AND SUBSIDIARIES

COMBINED MORTGAGE SERVICES SEGMENTS RESULTS
(In millions)

		Three Months Ended												Full Year Ended
		December 31,												December 31,
										%												%
		2010				2009				Change				2010				2009				Change
Mortgage fees		$	98			$	59				66	%		$	291			$	275				6	%
Gain on mortgage loans, net			126				160				(21	)%			635				610				4	%
Mortgage interest income			42				20				110	%			112				91				23	%
Mortgage interest expense			(57	)			(39	)			(46	)%			(182	)			(151	)			(21	)%
Mortgage net finance expense			(15	)			(19	)			21	%			(70	)			(60	)			(17	)%
Loan servicing income			112				122				(8	)%			415				431				(4	)%
Change in fair value of mortgage servicing rights			199				14				n/m	(1)			(427	)			(280	)			(53	)%
Net loan servicing income (loss)			311				136				129	%			(12	)			151				n/m	(1)
Other income			—				1				(100	)%			4				(14	)			n/m	(1)
Net revenues			520				337				54	%			848				962				(12	)%
Salaries and related expenses			121				96				26	%			406				375				8	%
Occupancy and other office expenses			11				11				—				43				41				5	%
Other depreciation and amortization			3				4				(25	)%			11				15				(27	)%
Other operating expenses			95				67				42	%			333				290				15	%
Total expenses			230				178				29	%			793				721				10	%
Income before income taxes			290				159				82	%			55				241				(77	)%
Less: net income attributable to noncontrolling interest			6				8				(25	)%			28				20				40	%
Combined Mortgage Services segments profit		$	284			$	151				88	%		$	27			$	221				(88	)%

PHH CORPORATION AND SUBSIDIARIES

MORTGAGE PRODUCTION SEGMENT RESULTS
(In millions, except average loan amount)

		Three Months Ended												Full Year Ended
		December 31,												December 31,
		2010				2009				% Change				2010				2009				% Change
Loans closed to be sold		$	14,438			$	6,453				124	%		$	37,747			$	29,370				29	%
Fee-based closings			3,996				2,239				78	%			11,247				8,194				37	%
Total closings		$	18,434			$	8,692				112	%		$	48,994			$	37,564				30	%
Purchase closings		$	5,316			$	4,464				19	%		$	20,270			$	15,401				32	%
Refinance closings			13,118				4,228				210	%			28,724				22,163				30	%
Total closings		$	18,434			$	8,692				112	%		$	48,994			$	37,564				30	%
Fixed rate		$	14,641			$	6,703				118	%		$	38,657			$	30,512				27	%
Adjustable rate			3,793				1,989				91	%			10,337				7,052				47	%
Total closings		$	18,434			$	8,692				112	%		$	48,994			$	37,564				30	%
Retail closings		$	11,333			$	6,990				62	%		$	33,429			$	31,834				5	%
Wholesale/correspondent closings			7,101				1,702				317	%			15,565				5,730				172	%
Total closings		$	18,434			$	8,692				112	%		$	48,994			$	37,564				30	%
First mortgage closings (units)			74,247				35,243				111	%			197,010				153,694				28	%
Second-lien closings (units)			1,971				2,414				(18	)%			8,687				10,692				(19	)%
Number of loans closed (units)			76,218				37,657				102	%			205,697				164,386				25	%
Average loan amount		$	241,857			$	230,810				5	%		$	238,187			$	228,510				4	%
Loans sold		$	12,583			$	6,444				95	%		$	34,535			$	29,002				19	%
Applications		$	19,305			$	12,476				55	%		$	74,628			$	54,283				37	%
IRLCs expected to close		$	9,170			$	6,211				48	%		$	38,330			$	26,210				46	%

		Three Months Ended												Full Year Ended
		December 31,												December 31,
		2010				2009				% Change				2010				2009				% Change
Mortgage fees		$	98			$	59				66	%		$	291			$	275				6	%
Gain on mortgage loans, net			126				160				(21	)%			635				610				4	%
Mortgage interest income			37				18				106	%			97				79				23	%
Mortgage interest expense			(40	)			(23	)			(74	)%			(113	)			(90	)			(26	)%
Mortgage net finance expense			(3	)			(5	)			40	%			(16	)			(11	)			(45	)%
Other income			—				1				(100	)%			1				6				(83	)%
Net revenues			221				215				3	%			911				880				4	%
Salaries and related expenses			113				85				33	%			369				336				10	%
Occupancy and other office expenses			9				9				—				34				32				6	%
Other depreciation and amortization			2				4				(50	)%			10				14				(29	)%
Other operating expenses			58				44				32	%			202				172				17	%
Total expenses			182				142				28	%			615				554				11	%
Income before income taxes			39				73				(47	)%			296				326				(9	)%
Less: net income attributable to noncontrolling interest			6				8				(25	)%			28				20				40	%
Segment profit		$	33			$	65				(49	)%		$	268			$	306				(12	)%

PHH CORPORATION AND SUBSIDIARIES

MORTGAGE SERVICING SEGMENT RESULTS
(In millions)

		Average for the Three Months												Average for the Year
		Ended December 31,												Ended December 31,
		2010				2009				% Change				2010				2009				% Change
Loan servicing portfolio		$	162,628			$	150,540				8	%		$	156,825			$	149,628				5	%

		Three Months Ended												Full Year Ended
		December 31,												December 31,
		2010				2009				% Change				2010				2009				% Change
Mortgage interest income		$	5			$	2				150	%		$	15			$	12				25	%
Mortgage interest expense			(17	)			(16	)			(6	)%			(69	)			(61	)			(13	)%
Mortgage net finance expense			(12	)			(14	)			14	%			(54	)			(49	)			(10	)%
Loan servicing income			112				122				(8	)%			415				431				(4	)%
Change in fair value of mortgage servicing rights			199				14				n/m	(1)			(427	)			(280	)			(53	)%
Net loan servicing income (loss)			311				136				129	%			(12	)			151				n/m	(1)
Other income (expense)			—				—				—				3				(20	)			n/m	(1)
Net revenues			299				122				145	%			(63	)			82				n/m	(1)
Salaries and related expenses			8				11				(27	)%			37				39				(5	)%
Occupancy and other office expenses			2				2				—				9				9				—
Other depreciation and amortization			1				—				100	%			1				1				—
Other operating expenses			37				23				61	%			131				118				11	%
Total expenses			48				36				33	%			178				167				7	%
Segment profit (loss)		$	251			$	86				192	%		$	(241	)		$	(85	)			(184)	%

PHH CORPORATION AND SUBSIDIARIES

FLEET MANAGEMENT SERVICES SEGMENT RESULTS
(In millions, except lease units)

		Average for the Three Months												Average for the Year
		Ended December 31,												Ended December 31,
		2010				2009				% Change				2010				2009				% Change
		(In thousands of units)
Leased vehicles			284				303				(6	)%			290				314				(8	)%
Maintenance service cards			315				269				17	%			287				275				4	%
Fuel cards			283				277				2	%			276				282				(2	)%
Accident management vehicles			293				289				1	%			290				305				(5	)%

		Three Months Ended												Full Year Ended
		December 31,												December 31,
		2010				2009				% Change				2010				2009				% Change
Fleet management fees		$	41			$	38				8	%		$	157			$	150				5	%
Fleet lease income			340				354				(4	)%			1,370				1,441				(5	)%
Other income			18				16				13	%			66				58				14	%
Net revenues			399				408				(2	)%			1,593				1,649				(3	)%
Salaries and related expenses			15				23				(35	)%			75				86				(13	)%
Occupancy and other office expenses			4				5				(20	)%			17				18				(6	)%
Depreciation on operating leases			303				305				(1	)%			1,224				1,267				(3	)%
Fleet interest expense			20				19				5	%			94				95				(1	)%
Other depreciation and amortization			3				3				—				11				11				—
Other operating expenses			29				38				(24	)%			109				118				(8	)%
Total expenses			374				393				(5	)%			1,530				1,595				(4	)%
Segment profit		$	25			$	15				67	%		$	63			$	54				17	%