Exhibit 99.1

PHH Corporation Announces Results for Second Quarter 2011
Despite Challenging Mortgage Market, Core Earnings* Stable versus Second Quarter 2010;
Improved GAAP Results Due to Lower MSR Fair Value Adjustments

	•		Net loss attributable to PHH Corporation of $41 million and basic loss per share attributable to PHH Corporation of $0.73, compared to a loss of $133 million and $2.40 per share, respectively, in the second quarter of 2010. Net loss reflects fair value charges on mortgage servicing rights (MSR) of $117 million compared to $274 million in the second quarter of 2010
	•		Core earnings (after-tax)* of $29 million and core earnings per share* of $0.50, compared to $28 million and $0.52, respectively, in the second quarter of 2010
	•		Fleet Management segment profit of $19 million, up from $13 million in the second quarter of 2010, driven by continued strong growth in fee-based revenues
	•		Interest rate lock commitments (IRLCs) of $7.5 billion, compared to $8.4 billion in the second quarter of 2010
	•		Mortgage loan servicing portfolio increased to $174 billion as of June 30, 2011, up from $156 billion at June 30, 2010

Mt. Laurel, NJ, July 28, 2011 (Business Wire) — PHH Corporation (NYSE: PHH) (“PHH” or the “Company”) today announced results for the three and six month periods ended June 30, 2011.

Jerry Selitto, president and chief executive officer, commented, “Our Fleet Management business continued its strong contribution to PHH Corporation earnings in the second quarter, with profits up 46% from the second quarter of 2010, while Mortgage business results reflect continued weakness in the housing finance sector, with volumes down from the previous year and lower gain on sale margins.

Fleet profit growth was primarily the result of a 10% increase in net fee income from the second quarter of 2010. We expect to continue to grow the Fleet business and its contribution to our total earnings, through new client signings and a sustained effort to increase fee-based services.

Our mortgage servicing revenues are strong, reflecting growth in our MSR portfolio and slower prepayments. While our servicing portfolio delinquencies rose slightly to 3.22% at quarter-end from 3.15% at the end of the first quarter, they are still approximately half those of most other large servicers. Foreclosure costs remain elevated at $24 million, compared to $20 million in the second quarter of 2010, driven by increased repurchase requests.

As we expected, our mortgage origination market share declined from 4.3% in the first quarter of 2011 to 3.7% in the second quarter. Despite this, we remain committed to our full-year market share goal of 5%. Heading into the third quarter, we believe our application volume is trending higher than that of our largest competitors and we are working actively with our partners on sales and account penetration initiatives to drive profitable volume. We launched a new private label client in the second quarter and have several additional prospects in the pipeline for the second half.

Despite the challenges currently facing the mortgage market, we continue to benefit from Fleet’s earnings stability and its increasing contribution to our quarterly results. We continue to work to leverage the unique, combined franchise value of both businesses to deliver consistent earnings growth through the cycle.”

Summary Consolidated Results
(In millions except per share data)

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2011				2010				2011				2010
Net revenues		$	516			$	371			$	1,181			$	948
(Loss) income before income taxes			(66	)			(215	)			19				(196	)
Net (loss) income attributable to PHH Corporation			(41	)			(133	)			8				(125	)
Basic (loss) earnings per share attributable to PHH Corporation		$	(0.73	)		$	(2.40	)		$	0.14			$	(2.26	)
Non-GAAP Results*
Core earnings (pre-tax)		$	47			$	52			$	104			$	78
Core earnings (after-tax)			29				28				63				41
Core earnings per share		$	0.50			$	0.52			$	1.11			$	0.74

The following summarizes the key highlights that drove our operating performance and segment profit (loss) for our reportable segments during the period indicated in 2011 in comparison to the same period in 2010:

Mortgage Production Segment

     Quarterly Comparison:

	•		Segment profit was $24 million lower compared with 2010 primarily due to an 11% decline in the volume of interest rate lock commitments expected to close and lower gain on sale margins.
	•		Interest rate lock commitments expected to close declined to $7.5 billion in 2011 from $8.4 billion in 2010 due to lower refinance activity. Total loan margins in 2011 declined from 2010, reflecting a reduction in the level of industry originations.
	•		Total mortgage closing volumes for 2011 were $9.7 billion of which approximately 72% were retail and 28% were wholesale/correspondent as compared to $10.1 billion in 2010 of which approximately 74% were retail and 26% were wholesale/correspondent.

     Year-to-Date Comparison:

	•		Segment profit was $3 million higher compared with 2010 due to a $68 million gain on the sale of 50.1% of the equity interests in our appraisal services business during the first quarter of 2011 partially offset by a 15% decline in the volume of interest rate lock commitments expected to close and lower total loan margins.
	•		Interest rate lock commitments expected to close declined to $12.5 billion in 2011 from $14.8 billion in 2010 primarily due to lower purchase applications in 2011 as compared to 2010. Total loan margins declined from 2010, reflecting a reduction in the level of industry originations.
	•		Total mortgage closing volumes for 2011 were $23.6 billion of which approximately 71% were retail and 29% were wholesale/correspondent as compared to $17.9 billion in 2010 of which approximately 76% were retail and 24% were wholesale/correspondent.

Mortgage Servicing Segment

     Quarterly Comparison:

•

Segment loss was unfavorably impacted in 2011 by a $117 million decrease in the fair value of our mortgage servicing rights driven primarily by lower long-term interest rates and higher projected foreclosure costs that were partially offset by improved projected portfolio delinquencies, as compared to a $274 million decrease during 2010.

	•		Loan servicing income increased by $20 million reflecting the continued growth in our loan servicing portfolio and a lower net reinsurance loss. Our average loan servicing portfolio increased by 11% from $154.4 billion in 2010 to $172.1 billion in 2011.
	•		Foreclosure-related charges remain elevated at $24 million during 2011, compared to $20 million in 2010, reflecting a continued higher level of repurchase requests and loss severities.

     Year-to-Date Comparison:

	•		Segment loss was unfavorably impacted in 2011 from a $92 million decrease in the fair value of our mortgage servicing rights driven primarily by lower long-term interest rates that were partially offset by improved portfolio delinquencies, as compared to a $281 million decrease during 2010. Additionally, there was an $8 million unfavorable change in fair value due to prepayments and recurring cash flows during 2011 compared to 2010, reflecting a higher level of payoffs and payments in 2011.
	•		Loan servicing income increased by $27 million reflecting the continued growth in our loan servicing portfolio and a lower net insurance loss. Our average loan servicing portfolio increased by 11% from $153.4 billion in 2010 to $170.4 billion in 2011.
	•		Foreclosure-related charges remain elevated at $39 million during 2011, compared to $43 million in 2010, reflecting a continued higher level of repurchase requests and loss severities.

Fleet Management Services Segment

     Quarterly Comparison:

	•		Segment profit increased by $6 million to $19 million in 2011, driven by higher units and usage of fee and asset-based management services and lower costs.
	•		Maintenance service, fuel, and accident management average units all increased in 2011 compared to 2010 despite a 6% decline in the number of leased vehicles.

     Year-to-Date Comparison:

	•		Segment profit increased by $14 million to $35 million in 2011, driven by higher units and usage of fee and asset-based management services and lower costs.
	•		Maintenance service, fuel, and accident management average units all increased in 2011 compared to 2010 despite a 6% decline in the number of leased vehicles.

Core earnings (loss) (pre-tax and after-tax) and core earnings (loss) per share 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) and core earnings (loss) per share 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) and core earnings (loss) per share 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

Since core earnings (loss) (pre-tax and after-tax) and core earnings (loss) per share 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) and core earnings (loss) per share 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) and core earnings (loss) per share involves differences from 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 computed in accordance with GAAP. Core earnings (loss) (pre-tax and after-tax) and core earnings (loss) per share 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 or Basic earnings (loss) per share attributable to PHH Corporation 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 www.phh.com

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

Segment Results

(In millions)

																						Second
																						Quarter
		Second Quarter 2011																				2010
										Fleet
		Mortgage				Mortgage				Management
		Production				Servicing				Services								Total PHH				Total PHH
		Segment				Segment				Segment				Other				Corporation				Corporation
Net fee income		$	56			$	—			$	44			$	—			$	100			$	106
Fleet lease income			—				—				343				—				343				349
Gain on mortgage loans			119				—				—				—				119				139
Mortgage net finance expense			(8	)			(16	)			—				(1	)			(25	)			(19	)
Loan servicing income(1)			—				117				—				—				117				97
MSRs fair value adjustments:
MSRs prepayments and recurring cash flows(2)			—				(42	)			—				—				(42	)			(46	)
Market-related(3)			—				(130	)			—				—				(130	)			(273	)
Credit-related(4)			—				13				—				—				13				(1	)
Other income			2				—				19				—				21				19
Net revenues			169				(58	)			406				(1	)			516				371
Depreciation on operating leases			—				—				309				—				309				306
Fleet interest expense			—				—				21				—				21				25
Foreclosure-related charges			—				24				—				—				24				20
Other expenses			140				31				57				—				228				235
Total expenses			140				55				387				—				582				586
Income (loss) before income taxes			29				(113	)			19				(1	)		$	(66	)		$	(215	)
Less: income attributable to
noncontrolling interest			4				—				—				—
Segment profit (loss)		$	25			$	(113	)		$	19			$	(1	)

Segment Results

(In millions)

																						Six Months Ended
																						June 30,
		Six Months Ended June 30, 2011																				2010
										Fleet
		Mortgage				Mortgage				Management
		Production				Servicing				Services								Total PHH				Total PHH
		Segment				Segment				Segment				Other				Corporation				Corporation
Net fee income		$	142			$	—			$	86			$	—			$	228			$	196
Fleet lease income			—				—				680				—				680				688
Gain on mortgage loans			178				—				—				—				178				244
Mortgage net finance expense			(10	)			(32	)			—				(2	)			(44	)			(39	)
Loan servicing income(1)			—				225				—				—				225				198
MSRs fair value adjustments:
MSRs prepayments and recurring cash flows(2)			—				(99	)			—				—				(99	)			(91	)
Market-related(3)			—				(102	)			—				—				(102	)			(262	)
Credit-related(4)			—				10				—				—				10				(19	)
Other income (expense)			73				(3	)			35				—				105				33
Net revenues			383				(1	)			801				(2	)			1,181				948
Depreciation on operating leases			—				—				615				—				615				614
Fleet interest expense			—				—				43				(2	)			41				48
Foreclosure-related charges			—				39				—				—				39				43
Other expenses			299				59				108				1				467				439
Total expenses			299				98				766				(1	)			1,162				1,144
Income (loss) before income taxes			84				(99	)			35				(1	)		$	19			$	(196	)
Less: income attributable to noncontrolling interest			7				—				—				—
Segment profit (loss)		$	77			$	(99	)		$	35			$	(1	)

Mortgage Production Segment

(In millions, except average loan amount)

		Three Months Ended												Six Months Ended
		June 30,												June 30,
		2011				2010				% Change				2011				2010				% Change
Loans closed to be sold		$	6,834			$	7,660				(11	)%		$	16,530			$	13,333				24	%
Fee-based closings			2,913				2,397				22	%			7,047				4,549				55	%
Total closings		$	9,747			$	10,057				(3	)%		$	23,577			$	17,882				32	%
Purchase closings		$	5,716			$	6,175				(7	)%		$	9,867			$	9,593				3	%
Refinance closings			4,031				3,882				4	%			13,710				8,289				65	%
Total closings		$	9,747			$	10,057				(3	)%		$	23,577			$	17,882				32	%
Fixed rate		$	6,727			$	7,957				(15	)%		$	16,665			$	13,882				20	%
Adjustable rate			3,020				2,100				44	%			6,912				4,000				73	%
Total closings		$	9,747			$	10,057				(3	)%		$	23,577			$	17,882				32	%
Retail closings		$	7,029			$	7,427				(5	)%		$	16,776			$	13,529				24	%
Wholesale/correspondent closings			2,718				2,630				3	%			6,801				4,353				56	%
Total closings		$	9,747			$	10,057				(3	)%		$	23,577			$	17,882				32	%
Average loan amount		$	252,126			$	228,865				10	%		$	256,495			$	233,566				10	%
Loans sold		$	6,831			$	6,897				(1	)%		$	19,728			$	12,659				56	%
Applications		$	15,365			$	15,958				(4	)%		$	26,302			$	28,157				(7	)%
IRLCs expected to close		$	7,501			$	8,425				(11	)%		$	12,545			$	14,799				(15	)%

		Three Months Ended												Six Months Ended
		June 30,												June 30,
		2011				2010				% Change				2011				2010				% Change
Net fee income		$	56			$	66				(15	)%		$	142			$	118				20	%
Gain on mortgage loans			119				139				(14	)%			178				244				(27	)%
Mortgage net finance expense			(8	)			(4	)			(100	)%			(10	)			(9	)			(11	)%
Other income			2				1				100	%			73				1				n/m	(1)
Net revenues			169				202				(16	)%			383				354				8	%
Total expenses			140				146				(4	)%			299				273				10	%
Income before income taxes			29				56				(48	)%			84				81				4	%
Less: income attributable to noncontrolling interest			4				7				(43	)%			7				7				—
Segment profit		$	25			$	49				(49	)%		$	77			$	74				4	%

Mortgage Servicing Segment

($ In millions)

		As of
		June 30,
		2011				2010				% Change
Ending total loan servicing portfolio		$	173,651			$	155,967				11	%
Number of loans serviced			1,033,360				968,669				7	%
Ending capitalized loan servicing portfolio		$	142,436			$	130,097				9	%
Capitalized servicing rate			1.06	%			0.95	%			—
Capitalized servicing multiple			3.5				3.1				—
Weighted-average servicing fee (in basis points)			30				30				—

		Three Months Ended												Six Months Ended
							June 30,											June 30,
		2011				2010				% Change				2011				2010				% Change
Average total loan servicing portfolio		$	172,053			$	154,392				11	%		$	170,365			$	153,381				11	%
Average capitalized loan servicing portfolio		$	141,499			$	129,316				9	%		$	139,707			$	128,736				9	%
Payoffs and principal curtailments of capitalized portfolio		$	4,943			$	5,140				(4	)%		$	10,966			$	9,984				10	%

		Three Months Ended												Six Months Ended
							June 30,												June 30,
		2011				2010				% Change				2011				2010				% Change
Mortgage net finance expense		$	(16	)		$	(15	)			(7	)%		$	(32	)		$	(29	)			(10	)%
Loan servicing income			117				97				21	%			225				198				14	%
Change in fair value of mortgage servicing rights			(159	)			(320	)			50	%			(191	)			(372	)			49	%
Other income (expense)			—				—				—				(3	)			1				n/m	(1)
Net revenues			(58	)			(238	)			76	%			(1	)			(202	)			100	%
Foreclosure-related charges			24				20				20	%			39				43				(9	)%
Other expenses			31				26				19	%			59				52				13	%
Total expenses			55				46				20	%			98				95				3	%
Segment loss		$	(113	)		$	(284	)			60	%		$	(99	)		$	(297	)			67	%

Portfolio delinquency ⁽²⁾

		June 30, 2011								December 31, 2010
		Number				Unpaid				Number				Unpaid
		of Loans				Balance				of Loans				Balance
30 days			2.17	%			1.82	%			2.36	%			2.01	%
60 days			0.53	%			0.47	%			0.67	%			0.60	%
90 or more days			0.95	%			0.93	%			1.21	%			1.27	%
Total delinquency			3.65	%			3.22	%			4.24	%			3.88	%
Foreclosure/real estate owned (3)			2.06	%			2.13	%			2.30	%			2.37	%

Fleet Management Services Segment

		Average for the												Average for the
		Three Months Ended												Six Months Ended
							June 30,											June 30,
		2011				2010				% Change				2011				2010				% Change
										(in thousands of units)
Leased vehicles			274				291				(6	)%			276				294				(6	)%
Maintenance service cards			318				275				16	%			318				273				16	%
Fuel cards			293				275				7	%			291				273				7	%
Accident management vehicles			293				291				1	%			294				289				2	%

		Three Months Ended												Six Months Ended
							June 30,											June 30,
		2011				2010				% Change				2011				2010				% Change
										(in millions)
Net fee income		$	44			$	40				10	%		$	86			$	78				10	%
Fleet lease income			343				349				(2	)%			680				688				(1	)%
Other income			19				18				6	%			35				31				13	%
Net revenues			406				407				—				801				797				1	%
Depreciation on operating leases			309				306				1	%			615				614				—
Fleet interest expense			21				25				(16	)%			43				49				(12	)%
Other expenses			57				63				(10	)%			108				113				(4	)%
Total expenses			387				394				(2	)%			766				776				(1	)%
Segment profit		$	19			$	13				46	%		$	35			$	21				67	%

PHH CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share data)

		Three Months								Six Months
		Ended June 30,								Ended June 30,
		2011				2010				2011				2010
Revenues
Mortgage fees		$	56			$	66			$	142			$	118
Fleet management fees			44				40				86				78
Net fee income			100				106				228				196
Fleet lease income			343				349				680				688
Gain on mortgage loans, net			119				139				178				244
Mortgage interest income			23				22				58				40
Mortgage interest expense			(48	)			(41	)			(102	)			(79	)
Mortgage net finance expense			(25	)			(19	)			(44	)			(39	)
Loan servicing income			117				97				225				198
Change in fair value of mortgage servicing rights			(159	)			(320	)			(191	)			(372	)
Net loan servicing (loss) income			(42	)			(223	)			34				(174	)
Other income			21				19				105				33
Net revenues			516				371				1,181				948
Expenses
Salaries and related expenses			117				119				251				233
Occupancy and other office expenses			15				14				30				29
Depreciation on operating leases			309				306				615				614
Fleet interest expense			21				25				41				48
Other depreciation and amortization			6				5				12				11
Other operating expenses			114				117				213				209
Total expenses			582				586				1,162				1,144
(Loss) income before income taxes			(66	)			(215	)			19				(196	)
Income tax (benefit) expense			(29	)			(89	)			4				(78	)
Net (loss) income			(37	)			(126	)			15				(118	)
Less: net income attributable to noncontrolling interest			4				7				7				7
Net (loss) income attributable to PHH Corporation		$	(41	)		$	(133	)		$	8			$	(125	)
Basic (loss) earnings per share attributable to PHH Corporation		$	(0.73	)		$	(2.40	)		$	0.14			$	(2.26	)
Diluted (loss) earnings per share attributable to PHH Corporation		$	(0.73	)		$	(2.40	)		$	0.14			$	(2.26	)

PHH CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

		June 30,				December 31,
		2011				2010
ASSETS
Cash and cash equivalents		$	212			$	195
Restricted cash, cash equivalents and investments			535				531
Mortgage loans held for sale			1,707				4,329
Accounts receivable, net			672				573
Net investment in fleet leases			3,526				3,492
Mortgage servicing rights			1,508				1,442
Property, plant and equipment, net			60				46
Goodwill			25				25
Other assets(1)			504				637
Total assets		$	8,749			$	11,270
LIABILITIES AND EQUITY
Accounts payable and accrued expenses		$	452			$	521
Debt			5,697				8,085
Deferred income taxes			722				728
Other liabilities			280				358
Total liabilities			7,151				9,692
Commitments and contingencies			—				—
Total PHH Corporation stockholders’ equity			1,589				1,564
Noncontrolling interest			9				14
Total equity			1,598				1,578
Total liabilities and equity		$	8,749			$	11,270

AVAILABLE FUNDING UNDER ASSET-BACKED DEBT ARRANGEMENTS AND UNSECURED
COMMITTED CREDIT FACILITIES

(In millions)

Capacity under all borrowing agreements is dependent upon maintaining compliance with, or obtaining waivers of, the terms, conditions and covenants of the respective agreements. Available capacity under asset-backed funding arrangements may be further limited by asset eligibility requirements. Available capacity as of June 30, 2011 consisted of:

						Utilized				Available
		Capacity				Capacity				Capacity
Vehicle Management Asset-Backed Debt:
Term notes, in revolving period		$	92			$	92			$	—
Variable-funding notes			1,511				1,260				251
Mortgage Asset-Backed Debt:
Committed warehouse facilities			2,535				1,352				1,183
Servicing advance facility			120				76				44
Unsecured Committed Credit Facilities(1)			530				16				514

Capacity shown for Mortgage asset-backed debt excludes $2.2 billion available under uncommitted facilities, and $706 million available under committed off-balance sheet gestation facilities.

PHH CORPORATION AND SUBSIDIARIES

NON-GAAP RECONCILIATIONS — CORE EARNINGS

(In millions, except per share data)

See “Note Regarding Non-GAAP Financial Measures” above in this press release for a description of the uses and
limitations of these Non-GAAP Financial Measures.

Regulation G Reconciliation

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2011				2010				2011				2010
(Loss) income before income taxes — as reported		$	(66	)		$	(215	)		$	19			$	(196	)
Less: net income attributable to noncontrolling interest			4				7				7				7
Segment (loss) income			(70	)			(222	)			12				(203	)
Certain MSRs fair value adjustments:
Market-related(1)			130				273				102				262
Credit-related(2)			(13	)			1				(10	)			19
Core earnings (pre-tax)		$	47			$	52			$	104			$	78
Net (loss) income attributable to PHH Corporation — as reported		$	(41	)		$	(133	)		$	8			$	(125	)
Certain MSRs fair value adjustments:
Market-related, net of taxes(1)(3)			76				161				60				155
Credit-related, net of taxes(2)(3)			(6	)			—				(5	)			11
Core earnings (after-tax)		$	29			$	28			$	63			$	41
Basic (loss) earnings per share attributable to PHH Corporation — as reported		$	(0.73	)		$	(2.40	)		$	0.14			$	(2.26	)
Certain MSRs fair value adjustments:
Market-related, net of taxes(1)(4)			1.36				2.90				1.07				2.80
Credit-related, net of taxes(2)(4)			(0.13	)			0.02				(0.10	)			0.20
Core earnings per share		$	0.50			$	0.52			$	1.11			$	0.74

PHH CORPORATION AND SUBSIDIARIES

NON-GAAP RECONCILIATIONS — CORE EARNINGS BY SEGMENT
(In millions)

Regulation G Reconciliation

		Second Quarter 2011
		Mortgage				Mortgage				Fleet
		Production				Servicing				Management
		Segment				Segment				Services Segment				Other
Segment profit (loss)		$	25			$	(113	)		$	19			$	(1	)
Certain MSRs fair value adjustments:
Market-related (1)			—				130				—				—
Credit-related(2)			—				(13	)			—				—
Core earnings (loss)		$	25			$	4			$	19			$	(1	)

						Second Quarter 2010
		Mortgage				Mortgage				Fleet
		Production				Servicing				Management
		Segment				Segment				Services Segment				Other
Segment profit (loss)		$	49			$	(284	)		$	13			$	—
Certain MSRs fair value adjustments:
Market-related (1)			—				273				—				—
Credit-related(2)			—				1				—				—
Core earnings (loss)		$	49			$	(10	)		$	13			$	—

PHH CORPORATION AND SUBSIDIARIES

NON-GAAP RECONCILIATIONS — CORE EARNINGS BY SEGMENT
(In millions)

Regulation G Reconciliation

		Six Months Ended June 30, 2011
		Mortgage				Mortgage				Fleet
		Production				Servicing				Management
		Segment				Segment				Services Segment				Other
Segment profit (loss)		$	77			$	(99	)		$	35			$	(1	)
Certain MSRs fair value adjustments:
Market-related (1)			—				102				—				—
Credit-related(2)			—				(10	)			—				—
Core earnings (loss)		$	77			$	(7	)		$	35			$	(1	)