PHH Corp. lost $30 million in the first quarter of 2016, as the company took a $10 million pretax reduction to the fair market value of its mortgage servicing rights.
In the first quarter of 2015, PHH earned $21 million.
PHH's servicing business lost $21 million, compared with a profit of $57 million in the first quarter of 2015. This was the result of net revenue decreasing by 64% to $44 million, primarily driven by the MSR market-related fair value adjustments and a decline in servicing income.
Its origination segment lost $26 million, compared with a loss of $15 million for the same period last year. The company attributed this to a $24 million decrease in net revenue driven by a reduction in closing volume and a 20-basis-point reduction in total loan margins.
PHH closed $8 billion during the quarter, down 15% from the first quarter of 2015, as there were fewer refinance originations.
"We are making solid progress in
