PHH 10-Q 5 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 29, 2015
Document and Entity Information
Entity Registrant Name	PHH CORP
Entity Central Index Key	77,776
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)		59,849,250
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
REVENUES
Origination and other loan fees	$ 75	$ 64	$ 220	$ 170
Gain on loans held for sale, net	69	69	237	200
Net loan servicing income:
Loan servicing income	94	110	298	335
Change in fair value of mortgage servicing rights	(115)	(84)	(123)	(215)
Net derivative gain related to mortgage servicing rights	50	0	54	26
Net loan servicing income	29	26	229	146
Net interest expense:
Interest income	13	13	35	33
Secured interest expense	(9)	(9)	(27)	(27)
Unsecured interest expense	(11)	(22)	(44)	(77)
Net interest expense	(7)	(18)	(36)	(71)
Other income	3	11	17	14
Net revenues	169	152	667	459
EXPENSES
Salaries and related expenses	79	98	251	278
Commissions	19	22	65	58
Loan origination expenses	23	22	72	64
Foreclosure and repossession expenses	11	14	41	42
Professional and third-party service fees	39	33	126	89
Technology equipment and software expenses	9	10	28	27
Occupancy and other office expenses	15	12	39	37
Depreciation and amortization	4	6	13	18
Other operating expenses	57	64	162	89
Total expenses	256	281	797	702
Loss from continuing operations before income taxes	(87)	(129)	(130)	(243)
Income tax benefit	(40)	(44)	(50)	(89)
Loss from continuing operations, net of tax	(47)	(85)	(80)	(154)
Income from discontinued operations, net of tax	0	303	0	273
Net (loss) income	(47)	218	(80)	119
Less: net income attributable to noncontrolling interest	3	3	11	5
Net (loss) income attributable to PHH Corporation	$ (50)	$ 215	$ (91)	$ 114
Basic (loss) earnings per share:
From continuing operations (in usd per share)	$ (0.84)	$ (1.64)	$ (1.68)	$ (2.83)
From discontinued operations (in usd per share)	0	5.64	0	4.86
Total attributable to PHH Corporation (in usd per share)	(0.84)	4	(1.68)	2.03
Diluted (loss) earnings per share:
From continuing operations (in usd per share)	(0.84)	(1.64)	(1.68)	(2.83)
From discontinued operations (in usd per share)	0	5.64	0	4.86
Total attributable to PHH Corporation (in usd per share)	$ (0.84)	$ 4	$ (1.68)	$ 2.03

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (47)	$ 218	$ (80)	$ 119
Other comprehensive income (loss), net of tax:
Change in unfunded pension liability, net	0	0	1	0
Currency translation adjustment	0	(22)	0	(22)
Total other comprehensive income (loss), net of tax	0	(22)	1	(22)
Total comprehensive (loss) income	(47)	196	(79)	97
Less: comprehensive income attributable to noncontrolling interest	3	3	11	5
Comprehensive (loss) income attributable to PHH Corporation	$ (50)	$ 193	$ (90)	$ 92

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions		Sep. 30, 2015	Dec. 31, 2014
ASSETS
Cash and cash equivalents		$ 982	$ 1,259
Restricted cash		43	56
Mortgage loans held for sale		783	915
Accounts receivable, net		88	123
Servicing advances, net		743	694
Mortgage servicing rights		927	1,005
Property and equipment, net		46	36
Other assets		253	208
Total assets	[1]	3,865	4,296
LIABILITIES
Accounts payable and accrued expenses		228	244
Subservicing advance liabilities		361	347
Debt		1,390	1,739
Deferred taxes		199	262
Loan repurchase and indemnification liability		66	63
Other liabilities		142	70
Total liabilities	[1]	2,386	2,725
Commitments and contingencies (Note 11)		0	0
EQUITY
Preferred stock, $0.01 par value; 1,090,000 shares authorized; none issued or outstanding		0	0
Common stock, $0.01 par value; 273,910,000 shares authorized; 59,848,025 shares issued and outstanding at September 30, 2015; 51,143,723 shares issued and outstanding at December 31, 2014		1	1
Additional paid-in capital		986	989
Retained earnings		470	566
Accumulated other comprehensive loss	[2]	(10)	(11)
Total PHH Corporation stockholders’ equity		1,447	1,545
Noncontrolling interest		32	26
Total equity		1,479	1,571
Total liabilities and equity		3,865	4,296
Variable Interest Entity
ASSETS
Cash and cash equivalents		101	85
Restricted cash		12	23
Mortgage loans held for sale		379	378
Accounts receivable, net		11	8
Servicing advances, net		159	155
Property and equipment, net		1	1
Other assets		8	8
Total assets		671	658
LIABILITIES
Accounts payable and accrued expenses		19	16
Debt		456	443
Other liabilities		11	11
Total liabilities		$ 486	$ 470
[1]	The Condensed Consolidated Balance Sheets include assets of variable interest entities which can be used only to settle the obligations and liabilities of variable interest entities which creditors or beneficial interest holders do not have recourse to PHH Corporation and subsidiaries as follows: September 30, 2015 December 31, 2014ASSETS Cash and cash equivalents$101 $85Restricted cash12 23Mortgage loans held for sale379 378Accounts receivable, net11 8Servicing advances, net159 155Property and equipment, net1 1Other assets8 8Total assets$671 $658 LIABILITIES Accounts payable and accrued expenses$19 $16Debt456 443Other liabilities11 11Total liabilities$486 $470
[2]	Includes amounts recorded related to the Company’s defined benefit pension plan, net of income tax benefits of $6 million as of both September 30, 2015 and December 31, 2014. During both the three and nine months ended September 30, 2015, there were no amounts reclassified out of Accumulated other comprehensive loss. During both the three and nine months ended September 30, 2014, the Company realized a $22 million currency translation gain and reclassified the amount to Income from discontinued operations, net of tax.

CONDENSED CONSOLIDATED BALANCE5

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
EQUITY
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	1,090,000	1,090,000	1,090,000
Preferred stock, shares issued (in shares)	0	0	0
Preferred stock, shares outstanding (in shares)	0	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	273,910,000	273,910,000	273,910,000
Common stock, shares issued (in shares)	59,848,025	59,848,025	51,143,723
Common stock, shares outstanding (in shares)	59,848,025	59,848,025	51,143,723
Pension adjustment, income tax benefit	$ 6	$ 6	$ 6
Amounts reclassified out of Accumulated other comprehensive loss	$ 0	$ 0

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interest
Balance at Dec. 31, 2013	$ 1,690	$ 1	$ 1,142	$ 507	$ 16	$ 24
Balance (in shares) at Dec. 31, 2013		57,265,517
Increase (Decrease) in Stockholders' Equity
Total comprehensive (loss) income	97			114	(22)	5
Stock compensation expense	6		6
Stock issued under share-based payment plans	15		15
Stock issued under share-based payment plans (in shares)		537,520
Repurchase of Common stock	(200)		(178)	(22)
Repurchase of Common stock (in shares)		(6,962,695)
Conversion of Convertible Notes, APIC	(4)		(4)
Recognition of deferred taxes related to Convertible notes	4		4
Balance at Sep. 30, 2014	1,608	$ 1	985	599	(6)	29
Balance (in shares) at Sep. 30, 2014		50,840,342
Balance at Dec. 31, 2014	$ 1,571	$ 1	989	566	(11)	26
Balance (in shares) at Dec. 31, 2014	51,143,723	51,143,723
Increase (Decrease) in Stockholders' Equity
Total comprehensive (loss) income	$ (79)			(91)	1	11
Distributions to noncontrolling interest	(5)					(5)
Stock compensation expense	7		7
Stock issued under share-based payment plans	2		2
Stock issued under share-based payment plans (in shares)		202,901
Repurchase of Common stock	(1)	$ (1)	5	(5)
Repurchase of Common stock (in shares)		(1,574,252)
Conversion of Convertible Notes, APIC	(18)		(19)
Conversion of Convertible Notes		$ 1
Number of shares issued from conversion of notes (in shares)		10,075,653
Recognition of deferred taxes related to Convertible notes	2		2
Balance at Sep. 30, 2015	$ 1,479	$ 1	$ 986	$ 470	$ (10)	$ 32
Balance (in shares) at Sep. 30, 2015	59,848,025	59,848,025

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net (loss) income	$ (80)	$ 119
Adjustments to reconcile Net (loss) income to net cash provided by operating activities:
Net gain on sale of business	0	(243)
Capitalization of originated mortgage servicing rights	(80)	(76)
Net loss on mortgage servicing rights and related derivatives	69	189
Vehicle depreciation	0	596
Other depreciation and amortization	13	23
Loss on early extinguishment of debt	30	24
Origination of mortgage loans held for sale	(10,910)	(9,555)
Proceeds on sale of and payments from mortgage loans held for sale	11,245	9,845
Net gain on interest rate lock commitments, mortgage loans held for sale and related derivatives	(218)	(162)
Deferred income tax benefit	(54)	(54)
Other adjustments and changes in other assets and liabilities, net	44	(51)
Net cash provided by operating activities	59	655
Cash flows from investing activities:
Net cash received on derivatives related to mortgage servicing rights	49	22
Proceeds on sale of mortgage servicing rights	45	29
Purchases of property and equipment	(25)	(11)
Decrease (increase) in restricted cash	13	(78)
Proceeds from sale of business, net of cash transferred and transaction costs	0	1,090
Purchases of certificates of deposit	0	(250)
Investment in vehicles	0	(850)
Proceeds on sale of investment vehicles	0	201
Other, net	2	6
Net cash provided by investing activities	84	159
Cash flows from financing activities:
Proceeds from secured borrowings	13,845	14,246
Principal payments on secured borrowings	(13,978)	(14,222)
Principal payments on unsecured borrowings	(245)	(425)
Cash tender premiums for convertible debt	(30)	0
Issuances of Common stock	2	10
Repurchase of Common stock	0	(200)
Cash paid for debt issuance costs	(6)	(14)
Distributions to noncontrolling interest	(5)	0
Other, net	(3)	(3)
Net cash used in financing activities	(420)	(608)
Net (decrease) increase in Cash and cash equivalents	(277)	206
Cash and cash equivalents at beginning of period	1,259	1,245
Cash and cash equivalents	982	1,451
Supplemental Disclosure of Cash Flows Information:
Payments for debt retirement premiums	$ 0	$ 22

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Organization PHH Corporation and subsidiaries (collectively, “PHH” or the “Company”) is a leading provider of end to end mortgage solutions. The Company operates in two business segments, Mortgage Production, which provides mortgage loan origination services and sells mortgage loans, and Mortgage Servicing, which performs servicing activities for loans originated by PHH Mortgage and mortgage servicing rights purchased from others, and acts as a subservicer for certain clients that own the underlying mortgage servicing rights. The Condensed Consolidated Financial Statements include the accounts and transactions of PHH and its subsidiaries, as well as entities in which the Company directly or indirectly has a controlling interest and variable interest entities of which the Company is the primary beneficiary. PHH Home Loans, LLC (“PHH Home Loans”) and its subsidiaries are consolidated within the Condensed Consolidated Financial Statements and Realogy Group LLC’s ownership interest is presented as a noncontrolling interest. Intercompany balances and transactions have been eliminated from the Condensed Consolidated Financial Statements . Preparation of Financial Statements The Condensed Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”), for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements. In management’s opinion, the unaudited Condensed Consolidated Financial Statements contain all adjustments, which include normal and recurring adjustments, necessary for a fair presentation of the financial position and results of operations for the interim periods presented. The results of operations reported for interim periods are not necessarily indicative of the results of operations for the entire year or any subsequent interim period. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Company’s 2014 Form 10-K. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions include, but are not limited to, those related to the valuation of mortgage servicing rights, mortgage loans held for sale and other financial instruments, the estimation of liabilities for commitments and contingencies, mortgage loan repurchases and indemnifications and the determination of certain income tax assets and liabilities and associated valuation allowances. Actual results could differ from those estimates. Effective on July 1, 2014, the Company sold its Fleet Management Services business and related fleet entities (collectively, the “Fleet business”) to certain wholly-owned subsidiaries of Element Financial Corporation. The results of the Fleet business are presented as discontinued operations in the Condensed Consolidated Statements of Operations, and have been excluded from continuing operations and segment results for all periods presented. The cash flows and comprehensive income related to the Fleet business have not been segregated and are included in the Condensed Consolidated Statements of Cash Flows and Condensed Consolidated Statements of Comprehensive Income, respectively, for all periods presented. Amounts related to the Fleet business are excluded from the Notes to Condensed Consolidated Financial Statements unless otherwise noted. See Note 2, 'Discontinued Operations' for additional information. Unless otherwise noted and except for share and per share data, dollar amounts presented within these Notes to Condensed Consolidated Financial Statements are in millions. Changes in Accounting Pronouncements Presentation of Financial Statements. In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” Under the new guidance, only disposals of a component of an entity that represent a major strategic shift on an entity’s operations and financial results shall be reported in discontinued operations. The guidance also requires the presentation as discontinued operations for an entity that, on acquisition, meets the criteria to be classified as held for sale. In addition, the update expands disclosures for discontinued operations, requires new disclosures regarding disposals of an individually significant component of an entity that does not qualify for discontinued operations presentation and expands disclosures about an entity’s significant continuing involvement with a discontinued operation. Due to the change in requirements for reporting discontinued operations described above, presentation and disclosures of future disposal transactions after adoption may be different than under current standards. The Company adopted this guidance as of January 1, 2015, and there was no impact to the Company’s financial statements or disclosures. Transfers of Financial Assets. In June 2014, the FASB issued limited amendments to ASC 860, “Transfers and Servicing” through the issuance of ASU 2014-11, “Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” The update requires entities to account for repurchase-to-maturity transactions as secured borrowings, and eliminates the accounting guidance on linked repurchase financing transactions. In addition, the update expands disclosure requirements related to certain transfers of financial assets accounted for as financings and accounted for as sales. The Company adopted this guidance as of January 1, 2015 and there was no impact to the Company’s financial statements. Recently Issued Accounting Pronouncements Consolidation. In February 2015, the FASB issued ASU 2015-02, “Amendments to the Consolidation Analysis.” The update impacts an entity’s consolidation analysis of its variable interest entities, particularly those that have fee arrangements and related party relationships. The update eliminates certain conditions for evaluating whether a fee paid to a decision maker or a service provider represents a variable interest, and places more emphasis in the evaluation of variable interests other than fee arrangements. Additionally, the amendments reduce the extent to which related party arrangements cause an entity to be considered a primary beneficiary. The amendments in this update are effective for the first interim and annual periods beginning after December 15, 2015 with early adoption permitted. A reporting entity may apply this update retrospectively or by using a modified retrospective approach. The Company is currently evaluating the impact of adopting this new standard. Interest. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” which requires that debt issuance costs related to a recognized debt liability be presented in the Balance Sheets as a direct deduction from the carrying amount of that debt liability, consistent with the presentation of debt discounts. In August 2015, the FASB issued ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issue Costs Associated with Line-of-Credit Arrangements” which states due to the lack of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The amendments in these updates are to be applied retrospectively, and are effective for the first interim and annual periods beginning after December 15, 2015, with early adoption permitted. The adoption will impact the Company's balance sheet presentation, and will result in a reclassification of an insignificant balance of deferred costs from Other assets to Debt, but will not impact the Company’s results of operations or cash flows. Intangibles—Goodwill and Other—Internal-Use Software. In April 2015, the FASB issued ASU 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This update clarifies whether a cloud computing arrangement should be accounted for as a software license or as a service contract by the customer, depending on the terms of the arrangement. In addition, the guidance requires all software licenses within the scope of the internal use software subtopic to be accounted for consistent with other licenses of intangible assets. The amendments in this update are effective for the first interim and annual periods beginning after December 15, 2015, with early adoption permitted. An entity can elect to adopt this update either: (i) prospectively to all arrangements entered into or materially modified after the effective date; or (ii) retrospectively. The Company is currently evaluating the impact of adopting this new standard. Revenue Recognition. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers - Deferral of the Effective Date,” which defers the effective date for ASU 2014-09, “Revenue from Contracts with Customers.” The update defers the effective date of the new revenue recognition guidance for one year, therefore the guidance is to be applied retrospectively to all prior periods presented or through a cumulative adjustment in the year of adoption, for interim and annual periods beginning after December 15, 2017. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that period. The Company is currently evaluating the impact of adopting this new standard.

Discontinued Operations

Discontinued Operations	9 Months Ended
	Sep. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	2. Discontinued Operations During the second quarter of 2014, the Company entered into a definitive agreement to sell its Fleet business and the sale was completed effective on July 1, 2014. The results of discontinued operations are summarized below: September 30, 2014 Three Months Ended Nine Months Ended (In millions) Net revenues (1) $ — $ 820 Total expenses (1) — 774 Income before income taxes (1) — 46 Income tax expense — 16 Gain from sale of discontinued operations, net of tax 303 243 Income from discontinued operations, net of tax $ 303 $ 273 ______________ (1) Represents the results of the Fleet business. The Gain from sale of discontinued operations, net of tax for the three and nine months ended September 30, 2014 includes a gain of $22 million resulting from the reclassification of currency translation adjustments from Accumulated other comprehensive income. The income tax expense related to the Gain on sale of discontinued operations was $183 million and $228 million for the three and nine months ended September 30, 2014 , respectively. For the nine months ended September 30, 2014, income tax expense related to the gain includes $52 million of expense associated with the earnings of Canadian subsidiaries that were previously considered to be indefinitely invested. Upon the classification of these entities as held for sale during the second quarter of 2014, the accumulated earnings were no longer deemed to be indefinitely invested and the Company recognized expense related to the cumulative earnings of such Canadian subsidiaries.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Earnings Per Share	3. Earnings Per Share Basic earnings or loss per share attributable to PHH Corporation was computed by dividing Net income or loss attributable to PHH Corporation for the period by the weighted-average number of shares outstanding during the period. Diluted earnings or loss per share attributable to PHH Corporation was computed by dividing Net income or loss attributable to PHH Corporation for the period by the weighted-average number of shares outstanding during the period, assuming all potentially dilutive common shares were issued. During 2014, the Company entered into two separate Accelerated Share Repurchase agreements to repurchase an aggregate of $200 million of PHH’s Common stock. The final delivery of shares occurred in March 2015 and resulted in a 1,574,252 reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted earnings or loss per share. In June 2015, the Company completed an offer to exchange its 6.0% Convertible notes due in 2017. The principal amount of the notes was settled in cash and the amount by which the conversion value exceeded the principal of the converted notes was settled in shares, resulting in the issuance of 10,075,653 shares. The shares were settled on June 18, 2015 and increased the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted earnings or loss per share. See Note 8, 'Debt and Borrowing Arrangements' for further discussion. The weighted-average computation of the dilutive effect of potentially issuable shares of Common stock under the treasury stock method excludes the effect of any contingently issuable securities where the contingency has not been met and excludes the effect of securities that would be anti-dilutive. Anti-dilutive securities may include: ▪ outstanding stock-based compensation awards representing shares from restricted stock units and stock options; ▪ stock assumed to be issued related to convertible notes; and ▪ sold warrants related to the Company's Convertible notes due in 2014. Shares associated with anti-dilutive securities are outlined in the table below. The following table summarizes the calculations of basic and diluted earnings or loss per share attributable to PHH Corporation for the periods indicated: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions, except share and per share data) Loss from continuing operations, net of tax $ (47 ) $ (85 ) $ (80 ) $ (154 ) Less: net income attributable to noncontrolling interest 3 3 11 5 Net loss from continuing operations attributable to PHH Corporation (50 ) (88 ) (91 ) (159 ) Income from discontinued operations, net of tax — 303 — 273 Net (loss) income attributable to PHH Corporation $ (50 ) $ 215 $ (91 ) $ 114 Weighted-average common shares outstanding—basic & diluted (1) 59,830,544 53,781,049 54,078,072 56,307,165 Basic (loss) earnings per share: From continuing operations $ (0.84 ) $ (1.64 ) $ (1.68 ) $ (2.83 ) From discontinued operations — 5.64 — 4.86 Total attributable to PHH Corporation $ (0.84 ) $ 4.00 $ (1.68 ) $ 2.03 Diluted (loss) earnings per share: From continuing operations $ (0.84 ) $ (1.64 ) $ (1.68 ) $ (2.83 ) From discontinued operations — 5.64 — 4.86 Total attributable to PHH Corporation $ (0.84 ) $ 4.00 $ (1.68 ) $ 2.03 ——————— (1) For all periods presented, the Company had a net loss from continuing operations attributable to PHH Corporation and, as a result, there were no potentially dilutive securities included in the denominator for computing dilutive earnings per share. The following table summarizes anti-dilutive securities excluded from the computation of diluted shares: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Outstanding stock-based compensation awards (1) 1,386,775 1,575,780 1,386,775 1,575,780 Assumed conversion of debt securities 7,001 8,794,619 5,804,349 9,124,934 ——————— (1) For the three and nine months ended September 30, 2015 , excludes 589,897 shares that are contingently issuable for which the contingency has not been met.

Transfers and Servicing of Mort

Transfers and Servicing of Mortgage Loans	9 Months Ended
	Sep. 30, 2015
Transfers and Servicing [Abstract]
Transfers and Servicing of Mortgage Loans	4. Transfers and Servicing of Mortgage Loans Residential mortgage loans are sold through one of the following methods: (i) sales to or pursuant to programs sponsored by Fannie Mae, Freddie Mac and the Government National Mortgage Association (collectively, the “Agencies”) or (ii) sales to private investors. The Company may have continuing involvement in mortgage loans sold by retaining one or more of the following: mortgage servicing rights and servicing obligations, recourse obligations and/or beneficial interests (such as interest-only strips, principal-only strips, or subordinated interests). During the nine months ended September 30, 2015 , the Company did not retain any interest from sales or securitizations other than mortgage servicing rights. See Note 10, 'Credit Risk' for a further description of recourse obligations. The total servicing portfolio consists of loans associated with capitalized mortgage servicing rights, loans held for sale, and the portfolio associated with loans subserviced for others. The total servicing portfolio was $226.9 billion and $227.3 billion , as of September 30, 2015 and December 31, 2014 , respectively. Mortgage servicing rights (“MSRs”) recorded in the Condensed Consolidated Balance Sheets are related to the capitalized servicing portfolio and are created either through the direct purchase of servicing from a third party or through the sale of an originated loan. The Company has agreements to sell a portion of its newly-created mortgage servicing rights to third parties, and will have continuing involvement as subservicer. As of September 30, 2015 , the Company had commitments to sell mortgage servicing rights related to $168 million of the unpaid principal balance of mortgage loans held for sale and interest rate lock commitments that are expected to result in closed loans and $284 million of the unpaid principal balance of loans in the capitalized servicing portfolio. As of September 30, 2015 , the fair value of the MSRs subject to sale commitments and associated with the loans in the capitalized portfolio was $3 million . The activity in the loan servicing portfolio associated with capitalized mortgage servicing rights consisted of: Nine Months Ended 2015 2014 (In millions) Balance, beginning of period $ 112,686 $ 129,145 Additions 7,086 6,986 Payoffs and curtailments (14,854 ) (13,859 ) Sales (3,080 ) (2,471 ) Balance, end of period $ 101,838 $ 119,801 The activity in capitalized MSRs consisted of: Nine Months Ended 2015 2014 (In millions) Balance, beginning of period $ 1,005 $ 1,279 Additions 80 76 Sales (35 ) (26 ) Changes in fair value due to: Realization of expected cash flows (132 ) (118 ) Changes in market inputs or assumptions used in the valuation model 9 (97 ) Balance, end of period $ 927 $ 1,114 The value of MSRs is driven by the net positive cash flows associated with servicing activities. These cash flows include contractually specified servicing fees, late fees and other ancillary servicing revenue and were recorded within Loan servicing income as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Servicing fees from capitalized portfolio $ 72 $ 88 $ 228 $ 270 Late fees 4 5 11 13 Other ancillary servicing revenue 4 6 19 22 As of September 30, 2015 and December 31, 2014 , the MSRs had a weighted-average life of 6.4 years and 5.7 years , respectively. See Note 12, 'Fair Value Measurements' for additional information regarding the valuation of MSRs. The following table sets forth information regarding cash flows relating to loan sales in which the Company has continuing involvement: Nine Months Ended 2015 2014 (In millions) Proceeds from new loan sales or securitizations $ 7,267 $ 7,205 Servicing fees from capitalized portfolio (1) 228 270 Purchases of delinquent or foreclosed loans (2) (112 ) (24 ) Servicing advances (3) (1,576 ) (1,507 ) Repayment of servicing advances (3) 1,527 1,487 ____________________ (1) Excludes late fees and other ancillary servicing revenue. (2) Includes purchases of repurchase eligible loans and excludes indemnification payments to investors and insurers of the related mortgage loans. (3) Outstanding servicing advance receivables are presented in Servicing advances, net in the Condensed Consolidated Balance Sheets , except for advances related to loans in foreclosure or real estate owned, which are included in Other assets. During the three and nine months ended September 30, 2015 , pre-tax gains of $82 million and $231 million , respectively, related to the sale or securitization of residential mortgage loans were recognized in Gain on loans held for sale, net in the Condensed Consolidated Statements of Operations . During the three and nine months ended September 30, 2014 , pre-tax gains of $73 million and $218 million , respectively, related to the sale or securitization of residential mortgage loans were recognized in Gain on loans held for sale, net in the Condensed Consolidated Statements of Operations .

Derivatives

Derivatives	9 Months Ended
	Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	5. Derivatives Derivative instruments and the risks they manage are as follows: ▪ Forward delivery commitments —Related to interest rate and price risk for mortgage loans held for sale and interest rate lock commitments ▪ Option contracts —Related to interest rate and price risk for mortgage loans held for sale and interest rate lock commitments ▪ MSR-related agreements —Related to interest rate risk for mortgage servicing rights Derivative instruments are recorded in Other assets and Other liabilities in the Condensed Consolidated Balance Sheets . The Company does not have any derivative instruments designated as hedging instruments. The following table summarizes the gross notional amount of derivatives: September 30, December 31, (In millions) Interest rate lock commitments $ 1,470 $ 1,185 Forward delivery commitments 3,555 3,893 Option contracts 60 213 MSR-related agreements 3,945 4,013 The following tables present the balances of outstanding derivative instruments on a gross basis and the application of counterparty and collateral netting: September 30, 2015 Gross Assets Offsetting Payables Cash Collateral Received Net Amount (In millions) ASSETS Subject to master netting arrangements: Forward delivery commitments $ 4 $ (5 ) $ 1 $ — MSR-related agreements 55 (3 ) (40 ) 12 Derivative assets subject to netting 59 (8 ) (39 ) 12 Not subject to master netting arrangements: Interest rate lock commitments 29 — — 29 Forward delivery commitments 1 — — 1 Derivative assets not subject to netting 30 — — 30 Total derivative assets $ 89 $ (8 ) $ (39 ) $ 42 Gross Liabilities Offsetting Receivables Cash Collateral Paid Net Amount LIABILITIES Subject to master netting arrangements: Forward delivery commitments $ 14 $ (8 ) $ (3 ) $ 3 Not subject to master netting arrangements: Forward delivery commitments 2 — — 2 Total derivative liabilities $ 16 $ (8 ) $ (3 ) $ 5 December 31, 2014 Gross Assets Offsetting Payables Cash Collateral Received Net Amount (In millions) ASSETS Subject to master netting arrangements: Forward delivery commitments $ 2 $ (2 ) $ — $ — MSR-related agreements 66 (2 ) (56 ) 8 Derivative assets subject to netting 68 (4 ) (56 ) 8 Not subject to master netting arrangements: Interest rate lock commitments 22 — — 22 Forward delivery commitments 3 — — 3 Derivative assets not subject to netting 25 — — 25 Total derivative assets $ 93 $ (4 ) $ (56 ) $ 33 Gross Liabilities Offsetting Cash Collateral Net Amount LIABILITIES Subject to master netting arrangements: Forward delivery commitments $ 9 $ (4 ) $ (3 ) $ 2 Not subject to master netting arrangements: Forward delivery commitments 5 — — 5 Total derivative liabilities $ 14 $ (4 ) $ (3 ) $ 7 The following table summarizes the gains (losses) recorded in the Condensed Consolidated Statements of Operations for derivative instruments: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Gain on loans held for sale, net: Interest rate lock commitments $ 81 $ 63 $ 216 $ 232 Forward delivery commitments (25 ) — (14 ) (59 ) Option contracts — — (1 ) (3 ) Net derivative gain related to mortgage servicing rights: MSR-related agreements 50 — 54 26

Other Assets

Other Assets	9 Months Ended
	Sep. 30, 2015
Other Assets [Abstract]
Other Assets	6. Other Assets Other assets consisted of: September 30, December 31, (In millions) Repurchase eligible loans (1) $ 72 $ 53 Derivatives 42 33 Equity method investments 32 34 Income taxes receivable 28 2 Mortgage loans in foreclosure, net 26 32 Real estate owned, net 22 21 Deferred financing costs 15 19 Other 16 14 Total $ 253 $ 208 ______________ (1) Repurchase eligible loans represent certain mortgage loans sold pursuant to Government National Mortgage Association programs where the Company, as servicer, has the unilateral option to repurchase the loan if certain criteria are met, including if a loan is greater than 90 days delinquent and where it has been determined that there is more than a trivial benefit from exercising the repurchase option. Regardless of whether the repurchase option has been exercised, the Company must recognize eligible loans within Other assets and a corresponding repurchase liability within Accounts payable and accrued expenses in the Condensed Consolidated Balance Sheets .

Other Liabilities

Other Liabilities	9 Months Ended
	Sep. 30, 2015
Other Liabilities Disclosure [Abstract]
Other Liabilities	7. Other Liabilities Other liabilities consisted of: September 30, December 31, (In millions) Litigation and regulatory reserves (Note 11) $ 106 $ 29 Pension and other post employment benefits liability 11 11 Liability for income tax contingencies 8 9 Derivatives 5 7 Other 12 14 Total $ 142 $ 70

Debt and Borrowing Arrangements

Debt and Borrowing Arrangements	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Debt and Borrowing Arrangements	8. Debt and Borrowing Arrangements The following table summarizes the components of Debt: September 30, 2015 December 31, Balance Interest Rate (1) Available Capacity (2) Balance (In millions) Committed warehouse facilities $ 663 2.2 % $ 1,262 $ 800 Uncommitted warehouse facilities — — 2,500 — Servicing advance facility 112 2.2 % 43 108 Convertible notes due in 2017 (3) — 6.0 % n/a 216 Term notes due in 2019 275 7.375 % n/a 275 Term notes due in 2021 340 6.375 % n/a 340 Unsecured debt 615 831 Total $ 1,390 $ 1,739 ______________ (1) Interest rate shown represents the stated interest rate of outstanding borrowings, which may differ from the effective rate due to the amortization of premiums, discounts and issuance costs. Warehouse facilities and the servicing advance facility are variable-rate. Rate shown for warehouse facilities represents the weighted-average rate of current outstanding borrowings. (2) Capacity is dependent upon maintaining compliance with, or obtaining waivers of, the terms, conditions and covenants of the respective agreements, including asset-eligibility requirements. (3) After the completion of the exchange offers described below, an insignificant amount of notes remain as of September 30, 2015 . Amount is net of unamortized discount of $29 million as of December 31, 2014 . The effective interest rate of the Convertible notes due in 2017 is 13% , including the accretion of the discount and issuance costs. Assets held as collateral that are not available to pay the Company’s general obligations as of September 30, 2015 consisted of: Warehouse Facilities Servicing Advance Facility (In millions) Restricted cash $ 7 $ 8 Servicing advances — 159 Mortgage loans held for sale (unpaid principal balance) 697 — Total $ 704 $ 167 The following table provides the contractual debt maturities as of September 30, 2015 : Warehouse Facilities Servicing Advance Facility (1) Unsecured Debt Total (In millions) Within one year $ 663 $ 112 $ — $ 775 Between one and two years — — — — Between two and three years — — — — Between three and four years — — 275 275 Between four and five years — — — — Thereafter — — 340 340 $ 663 $ 112 $ 615 $ 1,390 _____________ (1) Maturities of the servicing advance facility represent estimated payments based on the expected cash inflows of the receivables. See Note 12, 'Fair Value Measurements' for the measurement of the fair value of Debt. Mortgage Warehouse Facilities In the first quarter of 2015, the committed mortgage repurchase facility with Wells Fargo Bank was extended to April 1, 2016, and the committed capacity was increased by $100 million to $450 million . On April 7, 2015, the $150 million committed mortgage repurchase facility with The Royal Bank of Scotland plc was terminated by mutual agreement of the parties. Servicing Advance Facility On June 11, 2015, PHH Servicer Advance Receivables Trust 2013-1 ("PSART"), an indirect, wholly-owned subsidiary of the Company, entered into a Note Purchase Agreement with Wells Fargo and issued the Series 2015-1 variable funding notes with an aggregate maximum principal amount of $155 million . The proceeds from the Series 2015-1 Notes were used to pay in full all amounts owed under the Series 2013-1 Notes previously issued to The Royal Bank of Scotland plc. The Series 2015-1 Notes have a revolving period through June 15, 2016 and a final maturity of June 15, 2017. The notes bear interest, payable monthly, based on LIBOR plus an agreed-upon margin. Unsecured Debt Convertible Notes due in 2017. In June 2015, the Company completed an exchange of $243 million aggregate principal of its 6.0% Convertible notes due in 2017 for cash and, for the conversion value in excess of principal, shares of the Company’s Common stock. The exchange offer included cash consideration of $1,125 and 41.4611 shares of Common stock for each $1,000 principal amount of the notes, plus accrued and unpaid interest. The Company retired the notes in exchange for $274 million of cash, plus 10.076 million shares of Common stock. The total value of the consideration of the exchange offer was allocated between the liability and equity components of the original instrument. The portion allocated to the extinguishment of the liability component was equal to the fair value of that component immediately prior to extinguishment, with the difference between this allocation and the net carrying amount of the debt recognized as a loss on early extinguishment of debt. The remaining settlement consideration was allocated to the reacquisition of the equity component and was recognized as a reduction of additional paid-in capital. In connection with the exchange offer, the Company recognized a loss of $30 million during the nine months ended September 30, 2015 in Other operating expenses in the Condensed Consolidated Statements of Operations. In July 2015, the Company retired substantially all of the 6.0% Convertible notes due in 2017 remaining after the exchange offer for $4 million of cash, including an exchange premium and accrued and unpaid interest. Debt Covenants There were no significant amendments to the terms of debt covenants during the nine months ended September 30, 2015 . As of September 30, 2015 , the Company was in compliance with all financial covenants related to its debt arrangements.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	9. Income Taxes Interim income tax expense was recorded by applying a projected full-year effective income tax rate to the quarterly income or loss from continuing operations before income taxes for results that are deemed to be reliably estimable. Certain results dependent on fair value adjustments of the Company are considered not to be reliably estimable, and therefore, discrete year-to-date income tax provisions are recorded on those results. See Note 2, 'Discontinued Operations' for a discussion of the income tax provision related to the income or loss from discontinued operations. The following table and discussion summarizes items that significantly impacted Income tax expense or benefit from continuing operations and increased (decreased) the effective tax rate: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) State and local income taxes, net of federal tax benefits $ (7 ) $ (2 ) $ (8 ) $ (7 ) Liabilities for income tax contingencies — 3 — 3 Changes in rate and apportionment factors — (5 ) — (4 ) Changes in valuation allowance 2 8 5 7 Nondeductible expenses — 1 6 1 Noncontrolling interest (1 ) (1 ) (4 ) (2 ) Other (4 ) (3 ) (4 ) (2 ) State and local income taxes, net of federal tax benefits. Represents the impact to the effective tax rate from the pre-tax income or loss as well as the mix of income or loss from the operations by entity and state income tax jurisdiction. The effective state tax rate for the nine months ended September 30, 2015 is higher compared to the nine months ended September 30, 2014 . Liabilities for income tax contingencies. Represents the impact to the effective tax rate from changes in the liabilities for income tax contingencies associated with new uncertain tax positions taken during the period or the resolution and settlement of prior uncertain tax positions with various taxing authorities. During the three and nine months ended September 30, 2014 , the change was primarily driven by state tax filing positions expected to be taken related to the sale of the Fleet business. Changes in rate and apportionment factors. Represents the impact to the effective tax rate from deferred tax items for changes in apportionment factors and tax rate. For the three and nine months ended September 30, 2014 , the amount represents the impact of applying statutory changes to apportionment weight, apportionment sourcing and corporate income tax rates that were enacted by various states. Changes in valuation allowance. Represents the impact to the effective tax rate from state loss carryforwards generated during the year and certain cumulative non net operating loss deferred tax assets for which the Company believes it is more likely than not that the amounts will not be realized. For the three and nine months ended September 30, 2015 , the amount was primarily driven by state tax losses generated and an increase in the non net operating loss deferred tax assets for which a valuation allowance is warranted. For the three and nine months ended September 30, 2014, the amount was driven by items impacted by the change in composition of the subsidiaries included in state returns from the sale of the Fleet business and state tax losses generated by the mortgage business. Nondeductible expenses. Represents the impact to the effective tax rate from nondeductible expenses primarily related to legal and regulatory matters, premiums paid to exchange the Convertible notes due in 2017 and certain amounts of officer's compensation. Noncontrolling interest. Represents the impact to the effective tax rate from Realogy Group LLC’s portion of income taxes related to the income or loss attributable to PHH Home Loans. The impact is driven by PHH Home Loans’ election to report as a partnership for federal and state income tax purposes, whereby, the tax expense is reported by the individual LLC members. Accordingly, the Company’s income tax expense or benefit includes only its proportionate share of the income tax related to the income or loss generated by PHH Home Loans. Other . For the three and nine months ended September 30, 2015, the amount was primarily driven by adjustments to deferred tax items related to the sale of the Fleet business. For the three and nine months ended September 30, 2014, the amounts reflect the difference between the application of the statutory rate and the projected effective income tax rate to pre-tax income or loss from continuing operations.

Credit Risk

Credit Risk	9 Months Ended
	Sep. 30, 2015
Credit Risk
Credit Risk	10. Credit Risk The Company is subject to the following forms of credit risk: ▪ Consumer credit risk —through mortgage banking activities as a result of originating and servicing residential mortgage loans ▪ Counterparty credit risk —through derivative transactions, sales agreements and various mortgage loan origination and servicing agreements Consumer Credit Risk The Company is not subject to the majority of the risks inherent in maintaining a mortgage loan portfolio because loans are not held for investment purposes and are generally sold to investors within 30 days of origination. The majority of mortgage loan sales are on a non-recourse basis; however, the Company has exposure in certain circumstances in its capacity as a loan originator and servicer to loan repurchases and indemnifications through representation and warranty provisions and government servicing contracts. The following tables summarize certain information regarding the total loan servicing portfolio, which includes loans associated with the capitalized mortgage servicing rights as well as loans subserviced for others: September 30, December 31, (In millions) Loan Servicing Portfolio Composition Owned $ 102,945 $ 113,849 Subserviced 124,004 113,423 Total $ 226,949 $ 227,272 Conventional loans $ 198,608 $ 195,184 Government loans 24,116 27,720 Home equity lines of credit 4,225 4,368 Total $ 226,949 $ 227,272 Weighted-average interest rate 3.8 % 3.9 % September 30, 2015 December 31, 2014 Number of Loans Unpaid Balance Number of Loans Unpaid Balance Portfolio Delinquency (1) 30 days 2.28 % 1.62 % 2.43 % 1.75 % 60 days 0.43 0.30 0.58 0.41 90 or more days 0.87 0.64 1.13 0.85 Total 3.58 % 2.56 % 4.14 % 3.01 % Foreclosure/real estate owned (2) 1.97 % 1.73 % 2.22 % 2.04 % ______________ (1) Represents portfolio delinquencies as a percentage of the total number of loans and the total unpaid balance of the portfolio. (2) As of September 30, 2015 and December 31, 2014 , the total servicing portfolio included 18,137 and 21,456 of loans in foreclosure with an unpaid principal balance of $3.5 billion and $4.1 billion , respectively. Repurchase and Foreclosure-Related Reserves Representations and warranties are provided to investors and insurers on a significant portion of loans sold, and are also assumed on purchased mortgage servicing rights for loans that are owned by the Agencies or included in Agency-guaranteed securities. In limited circumstances, the full risk of loss on loans sold is retained to the extent the liquidation of the underlying collateral is insufficient. In some instances where the Company has purchased loans from third parties, it may have the ability to recover the loss from the third party originator. Repurchase and foreclosure-related reserves are maintained for probable losses related to repurchase and indemnification obligations and for on-balance sheet loans in foreclosure and real estate owned. A summary of the activity in repurchase and foreclosure-related reserves is as follows: Nine Months Ended 2015 2014 (In millions) Balance, beginning of period $ 93 $ 142 Realized losses (15 ) (46 ) Increase (decrease) in reserves due to: Changes in assumptions 5 2 New loan sales 10 5 Balance, end of period $ 93 $ 103 Repurchase and foreclosure-related reserves consist of the following: Loan Repurchases and Indemnifications The maximum amount of losses cannot be estimated because the Company does not service all of the loans for which it has provided representations or warranties. As of September 30, 2015 , $171 million of loans have been identified in which the Company has full risk of loss or has identified a breach of representation and warranty provisions; 10% of which were at least 90 days delinquent (calculated based upon the unpaid principal balance of the loans). During the third quarter of 2015, the Company updated the analysis used to calculate probable losses to include more predictive assumptions in response to changes in the repurchase criteria of the Agencies. There was not a material impact to the required reserve resulting from this update. As of September 30, 2015 and December 31, 2014 , liabilities for probable losses related to repurchase and indemnification obligations of $66 million and $ 63 million , respectively are presented in the Condensed Consolidated Balance Sheets . Given the inherent uncertainties involved in estimating losses associated with future repurchase and indemnification requests, there is a reasonable possibility that future losses may be in excess of the recorded liability. As of September 30, 2015 , the estimated amount of reasonably possible losses in excess of the recorded liability was $30 million which primarily relates to the Company’s estimate of repurchase and foreclosure-related charges that may not be reimbursed pursuant to government mortgage insurance programs in the event we do not file insurance claims. The estimate is based on an expectation of future defaults and the historical defect rate for government insured loans and is based upon significant judgments and assumptions which can be influenced by many factors, including: (i) home prices and the levels of home equity; (ii) the quality of underwriting procedures; (iii) borrower delinquency and default patterns; and (iv) general economic conditions. The Company’s estimate of reasonably possible losses does not represent probable losses and does not include an estimate for any losses related to loans from origination years where the Agencies have substantially completed or resolved their file reviews or related to loans with defects that were excluded from the resolution agreement entered into with Fannie Mae related to loans originated and delivered prior to July 1, 2012. Excluded defects include, but are not limited to, loans with certain title defects or with violations of law. Mortgage Loans in Foreclosure and Real Estate Owned The carrying values of the mortgage loans in foreclosure and real estate owned were recorded within Other assets in the Condensed Consolidated Balance Sheets as follows: September 30, December 31, (In millions) Mortgage loans in foreclosure and related advances $ 37 $ 46 Allowance for probable foreclosure losses (11 ) (14 ) Mortgage loans in foreclosure, net $ 26 $ 32 Real estate owned and related advances $ 38 $ 37 Adjustment to value for real estate owned (16 ) (16 ) Real estate owned, net $ 22 $ 21

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	11. Commitments and Contingencies The Company and its subsidiaries are defendants in various legal proceedings, which include private and civil litigation as well as government and regulatory examinations, investigations and inquiries or other requests for information. These matters are at varying procedural stages and the resolution of these various matters may result in adverse judgments, fines, penalties, injunctions and other relief against the Company as well as monetary payments or other agreements and obligations. Alternatively, the Company may engage in settlement discussions on certain matters in order to avoid the additional costs of engaging in litigation. Reserves are established for pending or threatened litigation, claims or assessments when it is probable that a loss has been incurred and the amount of such loss can be reasonably estimated. In light of the inherent uncertainties involved in litigation and other legal proceedings, it is not always possible to determine a reasonable estimate of the amount of a probable loss, and the Company may estimate a range of possible loss for consideration in its estimates. The estimates are based upon currently available information and involve significant judgment taking into account the varying stages and inherent uncertainties of such matters. Accordingly, the Company’s estimates may change from time to time and such changes may be material to the consolidated financial results. As of September 30, 2015 , the Company’s recorded reserves associated with legal and regulatory contingencies were $106 million and are presented in Other liabilities in the Condensed Consolidated Balance Sheets . Given the inherent uncertainties and status of the Company’s outstanding legal proceedings, the range of reasonably possible losses cannot be estimated for all matters. For matters where the Company can estimate the range, the Company believes reasonably possible losses in excess of recorded reserves may be up to $150 million in aggregate as of September 30, 2015 . There can be no assurance that the ultimate resolution of the Company’s pending or threatened litigation, claims, examinations, investigations or assessments will not result in losses in excess of the Company’s recorded reserves, or in excess of our estimate of reasonably possible losses. As a result, the ultimate resolution of any particular legal matter, or matters, could be material to the Company’s results of operations or cash flows for the period in which such matter is resolved. The following are descriptions of the Company’s significant legal and regulatory matters, which may involve loss contingencies. CFPB Enforcement Action. In January 2014, the Bureau of Consumer Financial Protection (the “CFPB”) initiated an administrative proceeding alleging that the Company’s reinsurance activities, including its mortgage insurance premium ceding practices, have violated certain provisions of the Real Estate Settlement Procedures Act (“RESPA”) and other laws enforced by the CFPB. Through its reinsurance subsidiaries, the Company assumed risk in exchange for premiums ceded from primary mortgage insurance companies. In November 2014, the Company received a recommended decision from the administrative law judge for the payment of $6.4 million to the CFPB. Both the Company and the CFPB’s enforcement counsel subsequently appealed the recommended decision to the Director of the CFPB. In June 2015, the Director of the CFPB issued a final order upholding in part, and reversing in part, the recommended decision. The final order requires the Company to pay $109 million , which is based upon the gross reinsurance premiums the Company received on or after July 21, 2008. The Company continues to believe that it has complied with RESPA and other laws applicable to its former mortgage reinsurance activities, and has filed an appeal to the United States Court of Appeals. In August 2015, the United States Court of Appeals stayed the CFPB's order pending the appeal, and as a result, the Company was not required to post the judgment amount in escrow or comply with injunctive relief provided for in the order. The Company continues to vigorously defend against the CFPB’s allegations and the Director’s judgment through the appellate process, although there can be no assurances as to the final outcome of any such appeal. As of September 30, 2015 , the Company’s recorded estimate for probable losses in connection with this matter is not material, and is substantially less than the amount reflected in the final order. MMC and NYDFS Examinations. The Company has undergone a regulatory examination by a multistate coalition of certain mortgage banking regulators (the “MMC”) and such regulators have alleged various violations of federal and state laws related to the Company’s legacy mortgage servicing practices. In July 2015, the Company received a settlement proposal from the MMC, proposing payments to certain borrowers nationwide where foreclosure proceedings were either referred or completed during 2009 through 2012, as well as other consumer relief and administrative penalties. In addition, the proposal would require that the Company comply with national servicing standards, submit its servicing activities to monitoring for compliance, and other injunctive relief. In October 2015, the Company met with the MMC and engaged in substantive discussions regarding the proposal. The Company believes it has meritorious explanations and defenses to the findings. In the second quarter of 2015, the New York Department of Financial Services ("NYDFS") clarified that it intends to propose that the Company enter into a consent order to close out pending examination report findings, including New York findings stemming from the MMC examination and in October 2015 the Company continued its discussions with NYDFS. While the Company believes it has meritorious explanations and defenses to the findings and has provided responses to these findings, any consent order may include fines and penalties, as well as other consumer relief or injunctive relief. As of September 30, 2015 , the Company included an estimate of probable losses in connection with the MMC and NYDFS matters in the recorded reserve. HUD Subpoenas. The Company has received document subpoenas from the Office of Inspector General of the U.S. Department of Housing and Urban Development (“HUD”) requesting production of certain documents related to, among other things, the Company’s origination and underwriting process for loans insured by the Federal Housing Administration (“FHA”). The Company has been cooperating in this investigation since its receipt of the subpoenas in 2013, and certain current and former employees of the Company have been deposed in connection with this matter. In October 2015, the Company met with HUD and discussed the ongoing investigation. As of September 30, 2015 , the Company included an estimate of probable losses in connection with this matter in the recorded reserve. Lender-Placed Insurance. The Company is currently subject to pending litigation alleging that its servicing practices around lender-placed insurance were not in compliance with applicable laws. Through its mortgage subsidiary, the Company did have certain outsourcing arrangements for the purchase of lender-placed hazard insurance for borrowers whose coverage had lapsed. The Company believes that it has meritorious defenses to these allegations; however, the resolution of such matter may result in adverse judgments, other relief against the Company, as well as monetary payments or other agreements and obligations. Given the nature of this matter and the related allegations, the Company cannot estimate the amount of loss or a range of possible losses, if any, associated with this matter. Other Subpoenas and Investigations. The Company has received document subpoenas from the U.S. Attorney’s Offices for the Southern and Eastern Districts of New York. The subpoenas requested production of certain documents related to, among other things, foreclosure expenses that we incurred in connection with the foreclosure of loans insured or guaranteed by FHA, Fannie Mae or Freddie Mac and loans sold pursuant to programs sponsored by Fannie Mae, Freddie Mac or Ginnie Mae. There can be no assurance that claims or litigation will not arise from this inquiry, or that fines, penalties or increased legal costs will not be incurred in connection with any of these matters. In addition, in October 2014 the Company received a document subpoena from the Office of the Inspector General of the Federal Housing Financing Agency (the “FHFA”) requesting production of certain documents related to, among other things, our origination, underwriting and quality control processes for loans sold to Fannie Mae and Freddie Mac. While the FHFA, as regulatory and conservator for Fannie Mae and Freddie Mac, does not have regulatory authority over the Company or its subsidiaries, there can be no assurance that Fannie Mae and/or Freddie Mac will not assert additional claims as a result of this inquiry. In addition to the increased regulatory focus on origination and servicing practices described above, Fannie Mae and Freddie Mac have also had a continued focus on foreclosure practices. They have assessed compensatory fees against the Company for failing to meet certain foreclosure timelines specified in their respective servicing guides. Although such compensatory fees have not been material to date, there can be no assurance that the assessment of any such compensatory fees will not be material to the Company’s results in the future.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	12. Fair Value Measurements The Company updates the valuation of each instrument recorded at fair value on a quarterly basis, evaluating all available observable information, which may include current market prices or bids, recent trade activity, changes in the levels of market activity and benchmarking of industry data. The assessment also includes consideration of identifying the valuation approach that would be used currently by market participants. If it is determined that a change in valuation technique or its application is appropriate, or if there are other changes in availability of observable data or market activity, the current methodology will be analyzed to determine if a transfer between levels of the valuation hierarchy is appropriate. Such reclassifications are reported as transfers into or out of a level as of the beginning of the quarter that the change occurs. There has been no change in the valuation methodologies and classification pursuant to the valuation hierarchy during the nine months ended September 30, 2015 . The incorporation of counterparty credit risk did not have a significant impact on the valuation of assets and liabilities recorded at fair value as of September 30, 2015 or December 31, 2014 . Recurring Fair Value Measurements The following summarizes the fair value hierarchy for instruments measured at fair value on a recurring basis: September 30, 2015 Level One Level Two Level Three Cash Collateral and Netting Total (In millions) ASSETS Mortgage loans held for sale $ — $ 744 $ 39 $ — $ 783 Mortgage servicing rights — — 927 — 927 Other assets—Derivative assets: Interest rate lock commitments — — 29 — 29 Forward delivery commitments — 5 — (4 ) 1 MSR-related agreements — 55 — (43 ) 12 LIABILITIES Other liabilities—Derivative liabilities: Interest rate lock commitments $ — $ — $ — $ — $ — Forward delivery commitments — 16 — (11 ) 5 December 31, 2014 Level One Level Two Level Three Cash Collateral and Netting Total (In millions) ASSETS Mortgage loans held for sale $ — $ 873 $ 42 $ — $ 915 Mortgage servicing rights — — 1,005 — 1,005 Other assets—Derivative assets: Interest rate lock commitments — — 22 — 22 Forward delivery commitments — 5 — (2 ) 3 MSR-related agreements — 66 — (58 ) 8 LIABILITIES Other liabilities—Derivative liabilities: Forward delivery commitments $ — $ 14 $ — $ (7 ) $ 7 Significant inputs to the measurement of fair value and further information on the assets and liabilities measured at fair value are as follows: Mortgage Loans Held for Sale (“MLHS”). The Company elected to record MLHS at fair value which is intended to better reflect the underlying economics and eliminate the operational complexities of risk management activities and hedge accounting requirements. The following table reflects the difference between the carrying amounts of MLHS measured at fair value, and the aggregate unpaid principal amount that the Company is contractually entitled to receive at maturity: September 30, 2015 December 31, 2014 Total Loans 90 days or more past due and on non-accrual status Total Loans 90 days or more past due and on non-accrual status (In millions) Carrying amount $ 783 $ 8 $ 915 $ 13 Aggregate unpaid principal balance 773 11 903 17 Difference $ 10 $ (3 ) $ 12 $ (4 ) The following table summarizes the components of mortgage loans held for sale: September 30, December 31, (In millions) First mortgages: Conforming $ 675 $ 761 Non-conforming 68 111 Total first mortgages 743 872 Second lien 5 5 Scratch and Dent 34 37 Other 1 1 Total $ 783 $ 915 Mortgage Servicing Rights. The following tables summarize certain information regarding the initial and ending capitalization rate of MSRs: Nine Months Ended 2015 2014 Initial capitalization rate of additions to MSRs 1.13 % 1.09 % September 30, December 31, Capitalization servicing rate 0.91 % 0.89 % Capitalization servicing multiple 3.2 3.1 Weighted-average servicing fee (in basis points) 29 29 The significant assumptions used in estimating the fair value of MSRs were as follows (in annual rates): September 30, December 31, Weighted-average prepayment speed (CPR) 9.2 % 11.5 % Option adjusted spread, in basis points (OAS) 934 865 Weighted-average delinquency rate 4.6 % 5.0 % In the first quarter of 2015, the Company integrated an updated prepayment model used in the valuation of MSRs which is more closely aligned with the slower actual prepayment speeds of the capitalized servicing portfolio and made further updates to the cash flow model based on a market data calibration. These updates to the valuation model resulted in a $46 million positive change in fair value of MSRs during the nine months ended September 30, 2015 . The following table summarizes the estimated change in the fair value of MSRs from adverse changes in the significant assumptions: September 30, 2015 Weighted- Average Prepayment Speed Option Adjusted Spread Weighted- Average Delinquency Rate (In millions) Impact on fair value of 10% adverse change $ (36 ) $ (44 ) $ (23 ) Impact on fair value of 20% adverse change (70 ) (84 ) (46 ) These sensitivities are hypothetical and presented for illustrative purposes only. Changes in fair value based on a 10% variation in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, this analysis does not assume any impact resulting from management’s intervention to mitigate these variations. The effect of a variation in a particular assumption is calculated without changing any other assumption and the assumptions used in valuing the MSRs are independently aggregated. Although there are certain inter-relationships among the various key assumptions noted above, changes in one of the significant assumptions would not independently drive changes in the others. The modeled prepayment speed assumptions are highly dependent upon interest rates, which drive borrowers’ propensity to refinance; however, there are other factors that can influence borrower refinance activity. These factors include housing prices, the levels of home equity, underwriting standards and loan product characteristics. The OAS is a component of the discount rate used to present value the cash flows of the MSR asset and represents the spread over a base interest rate that equates the present value of cash flows of an asset to the market price of that asset. The weighted average delinquency rate is based on the current and projected credit characteristics of the capitalized servicing portfolio and is dependent on economic conditions, home equity and delinquency and default patterns. Derivative Instruments . Derivative instruments are classified within Level Two and Level Three of the valuation hierarchy. The average pullthrough percentage used in measuring the fair value of interest rate lock commitments (IRLCs) as of September 30, 2015 and December 31, 2014 was 72% and 74% , respectively. The pullthrough percentage is considered a significant unobservable input and is estimated based on changes in pricing and actual borrower behavior using a historical analysis of loan closing and fallout data. Actual loan pullthrough is compared to the modeled estimates in order to evaluate this assumption each period based on current trends. Generally, a change in interest rates is accompanied by a directionally opposite change in the assumption used for the pullthrough percentage, and the impact to fair value of a change in pullthrough would be partially offset by the related change in price. Level Three Measurements Activity of assets and liabilities classified within Level Three of the valuation hierarchy consisted of: Three Months Ended Three Months Ended MLHS MSRs IRLCs, net MLHS MSRs IRLCs, net (In millions) Balance, beginning of period $ 48 $ 1,020 $ 22 $ 57 $ 1,187 $ 35 Realized and unrealized gains (losses) 1 (115 ) 81 (2 ) (84 ) 63 Purchases 7 — — 9 — — Issuances 2 32 — 1 30 — Settlements (18 ) (10 ) (74 ) (14 ) (19 ) (77 ) Transfers into Level Three 8 — — 12 — — Transfers out of Level Three (9 ) — — (9 ) — — Balance, end of period $ 39 $ 927 $ 29 $ 54 $ 1,114 $ 21 Nine Months Ended Nine Months Ended MLHS MSRs IRLCs, net MLHS MSRs IRLCs, net (In millions) Balance, beginning of period $ 42 $ 1,005 $ 22 $ 49 $ 1,279 $ 22 Realized and unrealized gains (losses) 5 (123 ) 216 (5 ) (215 ) 232 Purchases 24 — — 39 — — Issuances 4 80 — 3 76 — Settlements (31 ) (35 ) (209 ) (32 ) (26 ) (233 ) Transfers into Level Three 23 — — 26 — — Transfers out of Level Three (28 ) — — (26 ) — — Balance, end of period $ 39 $ 927 $ 29 $ 54 $ 1,114 $ 21 Transfers into Level Three generally represent mortgage loans held for sale with performance issues, origination flaws, or other characteristics that impact their salability in active secondary market transactions. Transfers out of Level Three represent Scratch and Dent loans that were foreclosed upon and loans that have been cured. Realized and unrealized gains (losses) related to assets and liabilities classified within Level Three of the valuation hierarchy were included in the Condensed Consolidated Statements of Operations as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Gain on loans held for sale, net: Mortgage loans held for sale $ — $ (3 ) $ 1 $ (8 ) Interest rate lock commitments 81 63 216 232 Change in fair value of mortgage servicing rights: Mortgage servicing rights (115 ) (84 ) (123 ) (215 ) Interest income: Mortgage loans held for sale 1 1 4 3 Unrealized gains (losses) included in the Condensed Consolidated Statements of Operations related to assets and liabilities classified within Level Three of the valuation hierarchy that are included in the Condensed Consolidated Balance Sheets were as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Gain on loans held for sale, net $ 27 $ 16 $ 26 $ 12 Change in fair value of mortgage servicing rights (72 ) (40 ) 9 (97 ) Fair Value of Other Financial Instruments As of September 30, 2015 and December 31, 2014 , all financial instruments were either recorded at fair value or the carrying value approximated fair value, with the exception of Debt. For financial instruments that were not recorded at fair value, such as Cash and cash equivalents, Restricted cash, Accounts receivable and Servicing advance receivables, the carrying value approximates fair value due to the short-term nature of such instruments. Debt. As of September 30, 2015 and December 31, 2014 , the total fair value of Debt was $1.4 billion and $2.0 billion , respectively, and is measured using Level Two inputs. As of September 30, 2015 , the fair value of Level Two Debt was estimated using the following valuation techniques: (i) $0.6 billion was measured using a market based approach, considering the current market pricing of recent trades for similar instruments or the current expected ask price for the Company’s debt instruments; and (ii) $0.8 billion was measured using observable spreads and terms for recent pricing of similar instruments.

Variable Interest Entities

Variable Interest Entities	9 Months Ended
	Sep. 30, 2015
Variable Interest Entities
Variable Interest Entities	13. Variable Interest Entities Assets and liabilities of significant variable interest entities are included in the Condensed Consolidated Balance Sheets as follows: September 30, 2015 December 31, 2014 PHH Home Loans Servicing Advance Receivables Trust PHH Home Loans Servicing Advance Receivables Trust (In millions) ASSETS Cash and cash equivalents $ 101 $ — $ 82 $ — Restricted cash 4 8 3 20 Mortgage loans held for sale 379 — 378 — Accounts receivable, net 11 — 8 — Servicing advances, net — 159 — 155 Property and equipment, net 1 — 1 — Other assets 7 1 8 — Total assets $ 503 $ 168 $ 480 $ 175 Assets held as collateral $ 360 $ 167 $ 353 $ 175 LIABILITIES Accounts payable and accrued expenses $ 19 $ — $ 16 $ — Debt 344 112 335 108 Other liabilities 11 — 10 — Total liabilities (1) $ 374 $ 112 $ 361 $ 108 ——————— (1) Excludes intercompany payables.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Segment Information	14. Segment Information Operations are conducted through the following two reportable segments: ■ Mortgage Production — provides mortgage loan origination services and sells mortgage loans. ■ Mortgage Servicing — performs servicing activities for loans originated by PHH Mortgage and mortgage servicing rights purchased from others, and acts as a subservicer for certain clients that own the underlying mortgage servicing rights. The Company’s continuing operations are located in the U.S. The results of the Fleet business have been excluded from continuing operations and segment results for all periods presented. See Note 2, 'Discontinued Operations' for additional information. The heading Other includes expenses that are not allocated back to the reportable segments and, for 2014, includes certain general corporate overhead expenses that were previously allocated to the Fleet business. Management evaluates the operating results of each of the reportable segments based upon Net revenues and Segment profit or loss, which is presented as the Income or loss from continuing operations before income tax expense or benefit and after Net income or loss attributable to noncontrolling interest. The Mortgage Production segment profit or loss excludes Realogy Group LLC’s noncontrolling interest in the profit or loss of PHH Home Loans. Segment results were as follows: Total Assets September 30, December 31, 2014 (In millions) Mortgage Production segment $ 1,120 $ 1,209 Mortgage Servicing segment 1,882 1,924 Other 863 1,163 Total $ 3,865 $ 4,296 Net Revenues Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Mortgage Production segment $ 149 $ 132 $ 460 $ 343 Mortgage Servicing segment 20 14 201 110 Other — 6 6 6 Total $ 169 $ 152 $ 667 $ 459 Segment Loss (2) Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Mortgage Production segment $ (10 ) $ (28 ) $ (26 ) $ (115 ) Mortgage Servicing segment (77 ) (71 ) (66 ) (90 ) Other (1) (3 ) (33 ) (49 ) (43 ) Total $ (90 ) $ (132 ) $ (141 ) $ (248 ) ——————— (1) For the nine months ended September 30, 2015 , the net results for Other include a $30 million pre-tax loss on the exchange of the Convertible notes due in 2017. For the three and nine months ended September 30, 2014, the net results for Other include a $24 million pre-tax loss related to the early repayment of the Senior Notes due in 2016. (2) The following is a reconciliation of Loss from continuing operations before income taxes to Segment loss: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Loss from continuing operations before income taxes $ (87 ) $ (129 ) $ (130 ) $ (243 ) Less: net income attributable to noncontrolling interest 3 3 11 5 Segment loss $ (90 ) $ (132 ) $ (141 ) $ (248 )

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Use of Estimates	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions include, but are not limited to, those related to the valuation of mortgage servicing rights, mortgage loans held for sale and other financial instruments, the estimation of liabilities for commitments and contingencies, mortgage loan repurchases and indemnifications and the determination of certain income tax assets and liabilities and associated valuation allowances. Actual results could differ from those estimates.
Discontinued Operations	Effective on July 1, 2014, the Company sold its Fleet Management Services business and related fleet entities (collectively, the “Fleet business”) to certain wholly-owned subsidiaries of Element Financial Corporation. The results of the Fleet business are presented as discontinued operations in the Condensed Consolidated Statements of Operations, and have been excluded from continuing operations and segment results for all periods presented. The cash flows and comprehensive income related to the Fleet business have not been segregated and are included in the Condensed Consolidated Statements of Cash Flows and Condensed Consolidated Statements of Comprehensive Income, respectively, for all periods presented. Amounts related to the Fleet business are excluded from the Notes to Condensed Consolidated Financial Statements unless otherwise noted. See Note 2, 'Discontinued Operations' for additional information.
Changes in Accounting Pronouncements and Recently Issued Accounting Pronouncements	Changes in Accounting Pronouncements Presentation of Financial Statements. In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” Under the new guidance, only disposals of a component of an entity that represent a major strategic shift on an entity’s operations and financial results shall be reported in discontinued operations. The guidance also requires the presentation as discontinued operations for an entity that, on acquisition, meets the criteria to be classified as held for sale. In addition, the update expands disclosures for discontinued operations, requires new disclosures regarding disposals of an individually significant component of an entity that does not qualify for discontinued operations presentation and expands disclosures about an entity’s significant continuing involvement with a discontinued operation. Due to the change in requirements for reporting discontinued operations described above, presentation and disclosures of future disposal transactions after adoption may be different than under current standards. The Company adopted this guidance as of January 1, 2015, and there was no impact to the Company’s financial statements or disclosures. Transfers of Financial Assets. In June 2014, the FASB issued limited amendments to ASC 860, “Transfers and Servicing” through the issuance of ASU 2014-11, “Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” The update requires entities to account for repurchase-to-maturity transactions as secured borrowings, and eliminates the accounting guidance on linked repurchase financing transactions. In addition, the update expands disclosure requirements related to certain transfers of financial assets accounted for as financings and accounted for as sales. The Company adopted this guidance as of January 1, 2015 and there was no impact to the Company’s financial statements. Recently Issued Accounting Pronouncements Consolidation. In February 2015, the FASB issued ASU 2015-02, “Amendments to the Consolidation Analysis.” The update impacts an entity’s consolidation analysis of its variable interest entities, particularly those that have fee arrangements and related party relationships. The update eliminates certain conditions for evaluating whether a fee paid to a decision maker or a service provider represents a variable interest, and places more emphasis in the evaluation of variable interests other than fee arrangements. Additionally, the amendments reduce the extent to which related party arrangements cause an entity to be considered a primary beneficiary. The amendments in this update are effective for the first interim and annual periods beginning after December 15, 2015 with early adoption permitted. A reporting entity may apply this update retrospectively or by using a modified retrospective approach. The Company is currently evaluating the impact of adopting this new standard. Interest. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” which requires that debt issuance costs related to a recognized debt liability be presented in the Balance Sheets as a direct deduction from the carrying amount of that debt liability, consistent with the presentation of debt discounts. In August 2015, the FASB issued ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issue Costs Associated with Line-of-Credit Arrangements” which states due to the lack of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The amendments in these updates are to be applied retrospectively, and are effective for the first interim and annual periods beginning after December 15, 2015, with early adoption permitted. The adoption will impact the Company's balance sheet presentation, and will result in a reclassification of an insignificant balance of deferred costs from Other assets to Debt, but will not impact the Company’s results of operations or cash flows. Intangibles—Goodwill and Other—Internal-Use Software. In April 2015, the FASB issued ASU 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This update clarifies whether a cloud computing arrangement should be accounted for as a software license or as a service contract by the customer, depending on the terms of the arrangement. In addition, the guidance requires all software licenses within the scope of the internal use software subtopic to be accounted for consistent with other licenses of intangible assets. The amendments in this update are effective for the first interim and annual periods beginning after December 15, 2015, with early adoption permitted. An entity can elect to adopt this update either: (i) prospectively to all arrangements entered into or materially modified after the effective date; or (ii) retrospectively. The Company is currently evaluating the impact of adopting this new standard. Revenue Recognition. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers - Deferral of the Effective Date,” which defers the effective date for ASU 2014-09, “Revenue from Contracts with Customers.” The update defers the effective date of the new revenue recognition guidance for one year, therefore the guidance is to be applied retrospectively to all prior periods presented or through a cumulative adjustment in the year of adoption, for interim and annual periods beginning after December 15, 2017. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that period. The Company is currently evaluating the impact of adopting this new standard.

Discontinued Operations (Tables

Discontinued Operations (Tables)	9 Months Ended
	Sep. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]
Schedule of results of discontinued operations	The results of discontinued operations are summarized below: September 30, 2014 Three Months Ended Nine Months Ended (In millions) Net revenues (1) $ — $ 820 Total expenses (1) — 774 Income before income taxes (1) — 46 Income tax expense — 16 Gain from sale of discontinued operations, net of tax 303 243 Income from discontinued operations, net of tax $ 303 $ 273 ______________ (1) Represents the results of the Fleet business.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Schedule of calculations of basic and diluted earnings or loss per share attributable to the entity	The following table summarizes the calculations of basic and diluted earnings or loss per share attributable to PHH Corporation for the periods indicated: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions, except share and per share data) Loss from continuing operations, net of tax $ (47 ) $ (85 ) $ (80 ) $ (154 ) Less: net income attributable to noncontrolling interest 3 3 11 5 Net loss from continuing operations attributable to PHH Corporation (50 ) (88 ) (91 ) (159 ) Income from discontinued operations, net of tax — 303 — 273 Net (loss) income attributable to PHH Corporation $ (50 ) $ 215 $ (91 ) $ 114 Weighted-average common shares outstanding—basic & diluted (1) 59,830,544 53,781,049 54,078,072 56,307,165 Basic (loss) earnings per share: From continuing operations $ (0.84 ) $ (1.64 ) $ (1.68 ) $ (2.83 ) From discontinued operations — 5.64 — 4.86 Total attributable to PHH Corporation $ (0.84 ) $ 4.00 $ (1.68 ) $ 2.03 Diluted (loss) earnings per share: From continuing operations $ (0.84 ) $ (1.64 ) $ (1.68 ) $ (2.83 ) From discontinued operations — 5.64 — 4.86 Total attributable to PHH Corporation $ (0.84 ) $ 4.00 $ (1.68 ) $ 2.03 ——————— (1) For all periods presented, the Company had a net loss from continuing operations attributable to PHH Corporation and, as a result, there were no potentially dilutive securities included in the denominator for computing dilutive earnings per share.
Summary of anti-dilutive securities excluded from the computation of dilutive shares	The following table summarizes anti-dilutive securities excluded from the computation of diluted shares: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Outstanding stock-based compensation awards (1) 1,386,775 1,575,780 1,386,775 1,575,780 Assumed conversion of debt securities 7,001 8,794,619 5,804,349 9,124,934 ——————— (1) For the three and nine months ended September 30, 2015 , excludes 589,897 shares that are contingently issuable for which the contingency has not been met.

Transfers and Servicing of Mo25

Transfers and Servicing of Mortgage Loans (Tables)	9 Months Ended
	Sep. 30, 2015
Transfers and Servicing [Abstract]
Schedule of activity in loan servicing portfolio associated with capitalized servicing rights	The activity in the loan servicing portfolio associated with capitalized mortgage servicing rights consisted of: Nine Months Ended 2015 2014 (In millions) Balance, beginning of period $ 112,686 $ 129,145 Additions 7,086 6,986 Payoffs and curtailments (14,854 ) (13,859 ) Sales (3,080 ) (2,471 ) Balance, end of period $ 101,838 $ 119,801
Schedule of activity in capitalized MSRs	The activity in capitalized MSRs consisted of: Nine Months Ended 2015 2014 (In millions) Balance, beginning of period $ 1,005 $ 1,279 Additions 80 76 Sales (35 ) (26 ) Changes in fair value due to: Realization of expected cash flows (132 ) (118 ) Changes in market inputs or assumptions used in the valuation model 9 (97 ) Balance, end of period $ 927 $ 1,114
Schedule of contractually specified servicing fees, late fees and other ancillary servicing revenue	The value of MSRs is driven by the net positive cash flows associated with servicing activities. These cash flows include contractually specified servicing fees, late fees and other ancillary servicing revenue and were recorded within Loan servicing income as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Servicing fees from capitalized portfolio $ 72 $ 88 $ 228 $ 270 Late fees 4 5 11 13 Other ancillary servicing revenue 4 6 19 22
Schedule of cash flows relating to loan sales in which the Company has continuing involvement	The following table sets forth information regarding cash flows relating to loan sales in which the Company has continuing involvement: Nine Months Ended 2015 2014 (In millions) Proceeds from new loan sales or securitizations $ 7,267 $ 7,205 Servicing fees from capitalized portfolio (1) 228 270 Purchases of delinquent or foreclosed loans (2) (112 ) (24 ) Servicing advances (3) (1,576 ) (1,507 ) Repayment of servicing advances (3) 1,527 1,487 ____________________ (1) Excludes late fees and other ancillary servicing revenue. (2) Includes purchases of repurchase eligible loans and excludes indemnification payments to investors and insurers of the related mortgage loans. (3) Outstanding servicing advance receivables are presented in Servicing advances, net in the Condensed Consolidated Balance Sheets , except for advances related to loans in foreclosure or real estate owned, which are included in Other assets.

Derivatives (Tables)

Derivatives (Tables)	9 Months Ended
	Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Summary of gross notional amount of derivatives	The following table summarizes the gross notional amount of derivatives: September 30, December 31, (In millions) Interest rate lock commitments $ 1,470 $ 1,185 Forward delivery commitments 3,555 3,893 Option contracts 60 213 MSR-related agreements 3,945 4,013
Schedule of outstanding derivative instruments on a gross basis and the application of counterparty and collateral netting	The following tables present the balances of outstanding derivative instruments on a gross basis and the application of counterparty and collateral netting: September 30, 2015 Gross Assets Offsetting Payables Cash Collateral Received Net Amount (In millions) ASSETS Subject to master netting arrangements: Forward delivery commitments $ 4 $ (5 ) $ 1 $ — MSR-related agreements 55 (3 ) (40 ) 12 Derivative assets subject to netting 59 (8 ) (39 ) 12 Not subject to master netting arrangements: Interest rate lock commitments 29 — — 29 Forward delivery commitments 1 — — 1 Derivative assets not subject to netting 30 — — 30 Total derivative assets $ 89 $ (8 ) $ (39 ) $ 42 Gross Liabilities Offsetting Receivables Cash Collateral Paid Net Amount LIABILITIES Subject to master netting arrangements: Forward delivery commitments $ 14 $ (8 ) $ (3 ) $ 3 Not subject to master netting arrangements: Forward delivery commitments 2 — — 2 Total derivative liabilities $ 16 $ (8 ) $ (3 ) $ 5 December 31, 2014 Gross Assets Offsetting Payables Cash Collateral Received Net Amount (In millions) ASSETS Subject to master netting arrangements: Forward delivery commitments $ 2 $ (2 ) $ — $ — MSR-related agreements 66 (2 ) (56 ) 8 Derivative assets subject to netting 68 (4 ) (56 ) 8 Not subject to master netting arrangements: Interest rate lock commitments 22 — — 22 Forward delivery commitments 3 — — 3 Derivative assets not subject to netting 25 — — 25 Total derivative assets $ 93 $ (4 ) $ (56 ) $ 33 Gross Liabilities Offsetting Cash Collateral Net Amount LIABILITIES Subject to master netting arrangements: Forward delivery commitments $ 9 $ (4 ) $ (3 ) $ 2 Not subject to master netting arrangements: Forward delivery commitments 5 — — 5 Total derivative liabilities $ 14 $ (4 ) $ (3 ) $ 7
Schedule of gains (losses) recorded in the Consolidated Statements of Operations	The following table summarizes the gains (losses) recorded in the Condensed Consolidated Statements of Operations for derivative instruments: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Gain on loans held for sale, net: Interest rate lock commitments $ 81 $ 63 $ 216 $ 232 Forward delivery commitments (25 ) — (14 ) (59 ) Option contracts — — (1 ) (3 ) Net derivative gain related to mortgage servicing rights: MSR-related agreements 50 — 54 26

Other Assets (Tables)

Other Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Other Assets [Abstract]
Schedule of other assets	Other assets consisted of: September 30, December 31, (In millions) Repurchase eligible loans (1) $ 72 $ 53 Derivatives 42 33 Equity method investments 32 34 Income taxes receivable 28 2 Mortgage loans in foreclosure, net 26 32 Real estate owned, net 22 21 Deferred financing costs 15 19 Other 16 14 Total $ 253 $ 208 ______________ (1) Repurchase eligible loans represent certain mortgage loans sold pursuant to Government National Mortgage Association programs where the Company, as servicer, has the unilateral option to repurchase the loan if certain criteria are met, including if a loan is greater than 90 days delinquent and where it has been determined that there is more than a trivial benefit from exercising the repurchase option. Regardless of whether the repurchase option has been exercised, the Company must recognize eligible loans within Other assets and a corresponding repurchase liability within Accounts payable and accrued expenses in the Condensed Consolidated Balance Sheets .

Other Liabilities (Tables)

Other Liabilities (Tables)	9 Months Ended
	Sep. 30, 2015
Other Liabilities Disclosure [Abstract]
Schedule of other liabilities	Other liabilities consisted of: September 30, December 31, (In millions) Litigation and regulatory reserves (Note 11) $ 106 $ 29 Pension and other post employment benefits liability 11 11 Liability for income tax contingencies 8 9 Derivatives 5 7 Other 12 14 Total $ 142 $ 70

Debt and Borrowing Arrangemen29

Debt and Borrowing Arrangements (Tables)	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Summary of the components of Debt	The following table summarizes the components of Debt: September 30, 2015 December 31, Balance Interest Rate (1) Available Capacity (2) Balance (In millions) Committed warehouse facilities $ 663 2.2 % $ 1,262 $ 800 Uncommitted warehouse facilities — — 2,500 — Servicing advance facility 112 2.2 % 43 108 Convertible notes due in 2017 (3) — 6.0 % n/a 216 Term notes due in 2019 275 7.375 % n/a 275 Term notes due in 2021 340 6.375 % n/a 340 Unsecured debt 615 831 Total $ 1,390 $ 1,739 ______________ (1) Interest rate shown represents the stated interest rate of outstanding borrowings, which may differ from the effective rate due to the amortization of premiums, discounts and issuance costs. Warehouse facilities and the servicing advance facility are variable-rate. Rate shown for warehouse facilities represents the weighted-average rate of current outstanding borrowings. (2) Capacity is dependent upon maintaining compliance with, or obtaining waivers of, the terms, conditions and covenants of the respective agreements, including asset-eligibility requirements. (3) After the completion of the exchange offers described below, an insignificant amount of notes remain as of September 30, 2015 . Amount is net of unamortized discount of $29 million as of December 31, 2014 . The effective interest rate of the Convertible notes due in 2017 is 13% , including the accretion of the discount and issuance costs.
Schedule of assets held as collateral that are not available to pay the Company's general obligations	Assets held as collateral that are not available to pay the Company’s general obligations as of September 30, 2015 consisted of: Warehouse Facilities Servicing Advance Facility (In millions) Restricted cash $ 7 $ 8 Servicing advances — 159 Mortgage loans held for sale (unpaid principal balance) 697 — Total $ 704 $ 167
Schedule of contractual debt maturities	The following table provides the contractual debt maturities as of September 30, 2015 : Warehouse Facilities Servicing Advance Facility (1) Unsecured Debt Total (In millions) Within one year $ 663 $ 112 $ — $ 775 Between one and two years — — — — Between two and three years — — — — Between three and four years — — 275 275 Between four and five years — — — — Thereafter — — 340 340 $ 663 $ 112 $ 615 $ 1,390 _____________ (1) Maturities of the servicing advance facility represent estimated payments based on the expected cash inflows of the receivables.

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Schedule of items that significantly impacted Income tax expense or benefit from continuing operations and increased (decreased) the effective tax rate:	The following table and discussion summarizes items that significantly impacted Income tax expense or benefit from continuing operations and increased (decreased) the effective tax rate: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) State and local income taxes, net of federal tax benefits $ (7 ) $ (2 ) $ (8 ) $ (7 ) Liabilities for income tax contingencies — 3 — 3 Changes in rate and apportionment factors — (5 ) — (4 ) Changes in valuation allowance 2 8 5 7 Nondeductible expenses — 1 6 1 Noncontrolling interest (1 ) (1 ) (4 ) (2 ) Other (4 ) (3 ) (4 ) (2 )

Credit Risk (Tables)

Credit Risk (Tables)	9 Months Ended
	Sep. 30, 2015
Credit Risk
Schedule of information regarding the total loan servicing portfolio	The following tables summarize certain information regarding the total loan servicing portfolio, which includes loans associated with the capitalized mortgage servicing rights as well as loans subserviced for others: September 30, December 31, (In millions) Loan Servicing Portfolio Composition Owned $ 102,945 $ 113,849 Subserviced 124,004 113,423 Total $ 226,949 $ 227,272 Conventional loans $ 198,608 $ 195,184 Government loans 24,116 27,720 Home equity lines of credit 4,225 4,368 Total $ 226,949 $ 227,272 Weighted-average interest rate 3.8 % 3.9 %
Schedule of portfolio delinquency	September 30, 2015 December 31, 2014 Number of Loans Unpaid Balance Number of Loans Unpaid Balance Portfolio Delinquency (1) 30 days 2.28 % 1.62 % 2.43 % 1.75 % 60 days 0.43 0.30 0.58 0.41 90 or more days 0.87 0.64 1.13 0.85 Total 3.58 % 2.56 % 4.14 % 3.01 % Foreclosure/real estate owned (2) 1.97 % 1.73 % 2.22 % 2.04 % ______________ (1) Represents portfolio delinquencies as a percentage of the total number of loans and the total unpaid balance of the portfolio. (2) As of September 30, 2015 and December 31, 2014 , the total servicing portfolio included 18,137 and 21,456 of loans in foreclosure with an unpaid principal balance of $3.5 billion and $4.1 billion , respectively.
Summary of the activity in repurchase and foreclosure-related reserves	A summary of the activity in repurchase and foreclosure-related reserves is as follows: Nine Months Ended 2015 2014 (In millions) Balance, beginning of period $ 93 $ 142 Realized losses (15 ) (46 ) Increase (decrease) in reserves due to: Changes in assumptions 5 2 New loan sales 10 5 Balance, end of period $ 93 $ 103
Schedule of carrying values of the mortgage loans in foreclosure and real estate owned	The carrying values of the mortgage loans in foreclosure and real estate owned were recorded within Other assets in the Condensed Consolidated Balance Sheets as follows: September 30, December 31, (In millions) Mortgage loans in foreclosure and related advances $ 37 $ 46 Allowance for probable foreclosure losses (11 ) (14 ) Mortgage loans in foreclosure, net $ 26 $ 32 Real estate owned and related advances $ 38 $ 37 Adjustment to value for real estate owned (16 ) (16 ) Real estate owned, net $ 22 $ 21

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Schedule of assets and liabilities measured at fair value on a recurring basis	The following summarizes the fair value hierarchy for instruments measured at fair value on a recurring basis: September 30, 2015 Level One Level Two Level Three Cash Collateral and Netting Total (In millions) ASSETS Mortgage loans held for sale $ — $ 744 $ 39 $ — $ 783 Mortgage servicing rights — — 927 — 927 Other assets—Derivative assets: Interest rate lock commitments — — 29 — 29 Forward delivery commitments — 5 — (4 ) 1 MSR-related agreements — 55 — (43 ) 12 LIABILITIES Other liabilities—Derivative liabilities: Interest rate lock commitments $ — $ — $ — $ — $ — Forward delivery commitments — 16 — (11 ) 5 December 31, 2014 Level One Level Two Level Three Cash Collateral and Netting Total (In millions) ASSETS Mortgage loans held for sale $ — $ 873 $ 42 $ — $ 915 Mortgage servicing rights — — 1,005 — 1,005 Other assets—Derivative assets: Interest rate lock commitments — — 22 — 22 Forward delivery commitments — 5 — (2 ) 3 MSR-related agreements — 66 — (58 ) 8 LIABILITIES Other liabilities—Derivative liabilities: Forward delivery commitments $ — $ 14 $ — $ (7 ) $ 7
Schedule of difference between the carrying amounts of Mortgage loans held for sale measured at fair value, and the aggregate unpaid principal amount that the Company is contractually entitled to receive at maturity	The following table reflects the difference between the carrying amounts of MLHS measured at fair value, and the aggregate unpaid principal amount that the Company is contractually entitled to receive at maturity: September 30, 2015 December 31, 2014 Total Loans 90 days or more past due and on non-accrual status Total Loans 90 days or more past due and on non-accrual status (In millions) Carrying amount $ 783 $ 8 $ 915 $ 13 Aggregate unpaid principal balance 773 11 903 17 Difference $ 10 $ (3 ) $ 12 $ (4 )
Schedule of components of Mortgage loans held for sale	The following table summarizes the components of mortgage loans held for sale: September 30, December 31, (In millions) First mortgages: Conforming $ 675 $ 761 Non-conforming 68 111 Total first mortgages 743 872 Second lien 5 5 Scratch and Dent 34 37 Other 1 1 Total $ 783 $ 915
Schedule of initial and ending capitalization rate of Mortgage Servicing Rights (MSRs)	The following tables summarize certain information regarding the initial and ending capitalization rate of MSRs: Nine Months Ended 2015 2014 Initial capitalization rate of additions to MSRs 1.13 % 1.09 % September 30, December 31, Capitalization servicing rate 0.91 % 0.89 % Capitalization servicing multiple 3.2 3.1 Weighted-average servicing fee (in basis points) 29 29
Schedule of significant assumptions used in estimating the fair value of Mortgage servicing rights (MSRs)	The significant assumptions used in estimating the fair value of MSRs were as follows (in annual rates): September 30, December 31, Weighted-average prepayment speed (CPR) 9.2 % 11.5 % Option adjusted spread, in basis points (OAS) 934 865 Weighted-average delinquency rate 4.6 % 5.0 %
Schedule of estimated change in the fair value of MSRs from adverse changes in the significant assumptions	The following table summarizes the estimated change in the fair value of MSRs from adverse changes in the significant assumptions: September 30, 2015 Weighted- Average Prepayment Speed Option Adjusted Spread Weighted- Average Delinquency Rate (In millions) Impact on fair value of 10% adverse change $ (36 ) $ (44 ) $ (23 ) Impact on fair value of 20% adverse change (70 ) (84 ) (46 )
Schedule of activity in assets and liabilities classified within Level Three of the valuation hierarchy	Activity of assets and liabilities classified within Level Three of the valuation hierarchy consisted of: Three Months Ended Three Months Ended MLHS MSRs IRLCs, net MLHS MSRs IRLCs, net (In millions) Balance, beginning of period $ 48 $ 1,020 $ 22 $ 57 $ 1,187 $ 35 Realized and unrealized gains (losses) 1 (115 ) 81 (2 ) (84 ) 63 Purchases 7 — — 9 — — Issuances 2 32 — 1 30 — Settlements (18 ) (10 ) (74 ) (14 ) (19 ) (77 ) Transfers into Level Three 8 — — 12 — — Transfers out of Level Three (9 ) — — (9 ) — — Balance, end of period $ 39 $ 927 $ 29 $ 54 $ 1,114 $ 21 Nine Months Ended Nine Months Ended MLHS MSRs IRLCs, net MLHS MSRs IRLCs, net (In millions) Balance, beginning of period $ 42 $ 1,005 $ 22 $ 49 $ 1,279 $ 22 Realized and unrealized gains (losses) 5 (123 ) 216 (5 ) (215 ) 232 Purchases 24 — — 39 — — Issuances 4 80 — 3 76 — Settlements (31 ) (35 ) (209 ) (32 ) (26 ) (233 ) Transfers into Level Three 23 — — 26 — — Transfers out of Level Three (28 ) — — (26 ) — — Balance, end of period $ 39 $ 927 $ 29 $ 54 $ 1,114 $ 21
Schedule of realized and unrealized gains (losses) related to assets and liabilities classified within Level Three of the valuation hierarchy	Realized and unrealized gains (losses) related to assets and liabilities classified within Level Three of the valuation hierarchy were included in the Condensed Consolidated Statements of Operations as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Gain on loans held for sale, net: Mortgage loans held for sale $ — $ (3 ) $ 1 $ (8 ) Interest rate lock commitments 81 63 216 232 Change in fair value of mortgage servicing rights: Mortgage servicing rights (115 ) (84 ) (123 ) (215 ) Interest income: Mortgage loans held for sale 1 1 4 3
Schedule of unrealized gains (losses) related to assets and liabilities classified within Level Three of the valuation hierarchy	Unrealized gains (losses) included in the Condensed Consolidated Statements of Operations related to assets and liabilities classified within Level Three of the valuation hierarchy that are included in the Condensed Consolidated Balance Sheets were as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Gain on loans held for sale, net $ 27 $ 16 $ 26 $ 12 Change in fair value of mortgage servicing rights (72 ) (40 ) 9 (97 )

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	9 Months Ended
	Sep. 30, 2015
Variable Interest Entities
Schedule of Variable Interest Entities	Assets and liabilities of significant variable interest entities are included in the Condensed Consolidated Balance Sheets as follows: September 30, 2015 December 31, 2014 PHH Home Loans Servicing Advance Receivables Trust PHH Home Loans Servicing Advance Receivables Trust (In millions) ASSETS Cash and cash equivalents $ 101 $ — $ 82 $ — Restricted cash 4 8 3 20 Mortgage loans held for sale 379 — 378 — Accounts receivable, net 11 — 8 — Servicing advances, net — 159 — 155 Property and equipment, net 1 — 1 — Other assets 7 1 8 — Total assets $ 503 $ 168 $ 480 $ 175 Assets held as collateral $ 360 $ 167 $ 353 $ 175 LIABILITIES Accounts payable and accrued expenses $ 19 $ — $ 16 $ — Debt 344 112 335 108 Other liabilities 11 — 10 — Total liabilities (1) $ 374 $ 112 $ 361 $ 108 ——————— (1) Excludes intercompany payables.

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Schedule of segment results	Segment results were as follows: Total Assets September 30, December 31, 2014 (In millions) Mortgage Production segment $ 1,120 $ 1,209 Mortgage Servicing segment 1,882 1,924 Other 863 1,163 Total $ 3,865 $ 4,296 Net Revenues Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Mortgage Production segment $ 149 $ 132 $ 460 $ 343 Mortgage Servicing segment 20 14 201 110 Other — 6 6 6 Total $ 169 $ 152 $ 667 $ 459 Segment Loss (2) Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Mortgage Production segment $ (10 ) $ (28 ) $ (26 ) $ (115 ) Mortgage Servicing segment (77 ) (71 ) (66 ) (90 ) Other (1) (3 ) (33 ) (49 ) (43 ) Total $ (90 ) $ (132 ) $ (141 ) $ (248 ) ——————— (1) For the nine months ended September 30, 2015 , the net results for Other include a $30 million pre-tax loss on the exchange of the Convertible notes due in 2017. For the three and nine months ended September 30, 2014, the net results for Other include a $24 million pre-tax loss related to the early repayment of the Senior Notes due in 2016. (2) The following is a reconciliation of Loss from continuing operations before income taxes to Segment loss: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Loss from continuing operations before income taxes $ (87 ) $ (129 ) $ (130 ) $ (243 ) Less: net income attributable to noncontrolling interest 3 3 11 5 Segment loss $ (90 ) $ (132 ) $ (141 ) $ (248 )
Schedule of reconciliation of Income (loss) before income taxes to Segment profit (loss)	The following is a reconciliation of Loss from continuing operations before income taxes to Segment loss: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (In millions) Loss from continuing operations before income taxes $ (87 ) $ (129 ) $ (130 ) $ (243 ) Less: net income attributable to noncontrolling interest 3 3 11 5 Segment loss $ (90 ) $ (132 ) $ (141 ) $ (248 )

Summary of Significant Accoun35

Summary of Significant Accounting Policies (Details)	9 Months Ended
	Sep. 30, 2015segment
Accounting Policies [Abstract]
Number of reportable segments	2

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Results of discontinued operations
Gain from sale of discontinued operations, net of tax				$ 0	$ 243
Income from discontinued operations, net of tax		$ 0	$ 303	$ 0	273
Gain from reclassification of currency translation adjustments			22		22
Income tax expense related to gain on sale of discontinued operations			183		228
Fleet business
Results of discontinued operations
Net revenues	[1]		0		820
Total expenses	[1]		0		774
Income before income taxes	[1]		0		46
Income tax expense			0		16
Gain from sale of discontinued operations, net of tax			303		243
Income from discontinued operations, net of tax			$ 303		273
Repatriation Of Foreign Earnings
Results of discontinued operations
Income tax expense from discontinued operations					$ 52
[1]	Represents the results of the Fleet business.

Earnings Per Share (Details)

Earnings Per Share (Details) $ in Millions		Jun. 30, 2015shares	Jun. 30, 2015shares	Mar. 31, 2015shares	Sep. 30, 2015	Jul. 30, 2015	Dec. 31, 2014USD ($)agreement
Convertible Debt [Abstract]
Number of shares issued from conversion of notes (in shares)		10,075,653
Accelerated Stock Repurchase Programs
Share repurchase agreements
Number of separate ASR agreements to repurchase PHH's common stock | agreement							2
Aggregate amount of PHH's common stock repurchase | $							$ 200
Repurchase of common stock (in shares)				1,574,252
6.0% Convertible Notes due 2017
Convertible Debt [Abstract]
Convertible note percentage	[1],[2]				6.00%
Unsecured debt | 6.0% Convertible Notes due 2017
Convertible Debt [Abstract]
Convertible note percentage		6.00%	6.00%			6.00%
Number of shares issued from conversion of notes (in shares)			10,076,000
[1]	After the completion of the exchange offers described below, an insignificant amount of notes remain as of September 30, 2015. Amount is net of unamortized discount of $29 million as of December 31, 2014. The effective interest rate of the Convertible notes due in 2017 is 13%, including the accretion of the discount and issuance costs.
[2]	Interest rate shown represents the stated interest rate of outstanding borrowings, which may differ from the effective rate due to the amortization of premiums, discounts and issuance costs. Warehouse facilities and the servicing advance facility are variable-rate. Rate shown for warehouse facilities represents the weighted-average rate of current outstanding borrowings.

Earnings Per Share (Details 2)

Earnings Per Share (Details 2) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Loss from continuing operations, net of tax		$ (47)	$ (85)	$ (80)	$ (154)
Less: net income attributable to noncontrolling interest		3	3	11	5
Net loss from continuing operations attributable to PHH Corporation		(50)	(88)	(91)	(159)
Income from discontinued operations, net of tax		0	303	0	273
Net (loss) income attributable to PHH Corporation		$ (50)	$ 215	$ (91)	$ 114
Weighted-average common shares outstanding—basic & diluted (in shares)	[1]	59,830,544	53,781,049	54,078,072	56,307,165
Basic (loss) earnings per share:
From continuing operations (in usd per share)		$ (0.84)	$ (1.64)	$ (1.68)	$ (2.83)
From discontinued operations (in usd per share)		0	5.64	0	4.86
Total attributable to PHH Corporation (in usd per share)		(0.84)	4	(1.68)	2.03
Diluted (loss) earnings per share:
From continuing operations (in usd per share)		(0.84)	(1.64)	(1.68)	(2.83)
From discontinued operations (in usd per share)		0	5.64	0	4.86
Total attributable to PHH Corporation (in usd per share)		$ (0.84)	$ 4	$ (1.68)	$ 2.03
Contingently issuable shares
Contingently issuable shares for which the contingency has not been met		589,897		589,897
Outstanding stock-based compensation awards
Anti-dilutive securities
Anti-dilutive securities excluded from the computation of dilutive securities (in shares)	[2]	1,386,775	1,575,780	1,386,775	1,575,780
Debt securities
Anti-dilutive securities
Anti-dilutive securities excluded from the computation of dilutive securities (in shares)		7,001	8,794,619	5,804,349	9,124,934
[1]	For all periods presented, the Company had a net loss from continuing operations attributable to PHH Corporation and, as a result, there were no potentially dilutive securities included in the denominator for computing dilutive earnings per share.
[2]	For the three and nine months ended September 30, 2015, excludes 589,897 shares that are contingently issuable for which the contingency has not been met.

Transfers and Servicing of Mo39

Transfers and Servicing of Mortgage Loans (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015
Transfers and Servicing [Abstract]
Servicing portfolio	$ 227,272		$ 226,949
Activity in the loan servicing portfolio associated with capitalized servicing rights
Balance, beginning of period	227,272
Balance, end of period	226,949
Capitalized servicing rights
Transfers and Servicing [Abstract]
Servicing portfolio	112,686	$ 129,145	101,838
Activity in the loan servicing portfolio associated with capitalized servicing rights
Balance, beginning of period	112,686	129,145
Additions	7,086	6,986
Payoffs and curtailments	(14,854)	(13,859)
Sales	(3,080)	(2,471)
Balance, end of period	$ 101,838	$ 119,801
Commitment to sell Mortgage Servicing Rights			284
Commitment to sell Mortgage servicing rights, fair value			3
Interest rate lock commitments and mortgage loans held for sale
Activity in the loan servicing portfolio associated with capitalized servicing rights
Commitment to sell Mortgage Servicing Rights			$ 168

Transfers and Servicing of Mo40

Transfers and Servicing of Mortgage Loans (Details 2) - USD ($) $ in Millions		3 Months Ended		9 Months Ended				12 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015		Sep. 30, 2014		Dec. 31, 2014
Activity in capitalized MSRs
Balance, beginning of period				$ 1,005		$ 1,279		$ 1,279
Additions				80		76
Sales				(35)		(26)
Changes in fair value due to:
Realization of expected cash flows				(132)		(118)
Changes in market inputs or assumptions used in the valuation model				9		(97)
Balance, end of period		$ 927	$ 1,114	927		1,114		$ 1,005
Contractually specified servicing fees, late fees and other ancillary servicing revenue were recorded within Loan servicing income as follows:
Servicing fees from capitalized portfolio		72	88	228	[1]	270	[1]
Late fees		4	5	11		13
Other ancillary servicing revenue		4	6	$ 19		22
Weighted average life of MSRs				6 years 4 months 24 days				5 years 8 months 12 days
Cash flows relating to loan sales in which the Company has continuing involvement
Proceeds from new loan sales or securitizations				$ 7,267		7,205
Servicing fees from capitalized portfolio		72	88	228	[1]	270	[1]
Purchases of delinquent or foreclosed loans	[2]			(112)		(24)
Servicing advances	[3]			(1,576)		(1,507)
Repayment of servicing advances	[3]			1,527		1,487
Realized Gain Loss on Sale
Pre-tax gains related to sale or securitization of residential mortgage loans		$ 82	$ 73	$ 231		$ 218
[1]	Excludes late fees and other ancillary servicing revenue.
[2]	Includes purchases of repurchase eligible loans and excludes indemnification payments to investors and insurers of the related mortgage loans.
[3]	Outstanding servicing advance receivables are presented in Servicing advances, net in the Condensed Consolidated Balance Sheets, except for advances related to loans in foreclosure or real estate owned, which are included in Other assets.

Derivatives (Details)

Derivatives (Details) - Not designated as hedging instruments - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Interest rate lock commitments
Notional amount of derivatives
Notional	$ 1,470	$ 1,185
Forward delivery commitments
Notional amount of derivatives
Notional	3,555	3,893
Option contracts
Notional amount of derivatives
Notional	60	213
MSR-related agreements
Notional amount of derivatives
Notional	$ 3,945	$ 4,013

Derivatives (Details 2)

Derivatives (Details 2) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
ASSETS
Net Amount, asset	$ 42	$ 33
LIABILITIES
Gross Liabilities, Not subject to master netting agreements, total	5	7
Not designated as hedging instruments
ASSETS
Gross Assets, subject to master netting agreements	59	68
Gross Assets, Not subject to master netting agreements	30	25
Gross Assets, Total	89	93
Offsetting Payables	(8)	(4)
Cash Collateral Received (paid)	(39)	(56)
Derivative Asset, Fair Value, Amount Offset Against Collateral	12	8
Net Amount, asset	42	33
LIABILITIES
Gross Liabilities, Total	16	14
Offsetting Receivables	(8)	(4)
Cash Collateral Received (paid)	(3)	(3)
Gross Liabilities, Not subject to master netting agreements, total	5	7
Not designated as hedging instruments | Forward delivery commitments
ASSETS
Gross Assets, subject to master netting agreements	4	2
Gross Assets, Not subject to master netting agreements	1	3
Offsetting Payables	(5)	(2)
Cash Collateral Received (paid)	1	0
Derivative Asset, Fair Value, Amount Offset Against Collateral	0	0
LIABILITIES
Gross Liabilities, Subject to master netting agreements	14	9
Gross Liabilities, Not subject to master netting agreements	2	5
Offsetting Receivables	(8)	(4)
Cash Collateral Received (paid)	(3)	(3)
Derivative Liability, Fair Value, Amount Offset Against Collateral	3	2
Not designated as hedging instruments | Interest rate lock commitments
ASSETS
Gross Assets, Not subject to master netting agreements	29	22
Not designated as hedging instruments | MSR-related agreements
ASSETS
Gross Assets, subject to master netting agreements	55	66
Offsetting Payables	(3)	(2)
Cash Collateral Received (paid)	(40)	(56)
Derivative Asset, Fair Value, Amount Offset Against Collateral	$ 12	$ 8

Derivatives (Details 3)

Derivatives (Details 3) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Derivatives
Net derivative gain related to mortgage servicing rights	$ 50	$ 0	$ 54	$ 26
Interest rate lock commitments | Gain on loans held for sale, net
Derivatives
Gains (losses) on derivative instruments	81	63	216	232
Forward delivery commitments | Gain on loans held for sale, net
Derivatives
Gains (losses) on derivative instruments	(25)	0	(14)	(59)
Option contracts | Gain on loans held for sale, net
Derivatives
Gains (losses) on derivative instruments	0	0	(1)	(3)
MSR-related agreements | Net derivative gain related to mortgage servicing rights
Derivatives
Net derivative gain related to mortgage servicing rights	$ 50	$ 0	$ 54	$ 26

Other Assets (Details)

Other Assets (Details) - USD ($) $ in Millions		9 Months Ended
		Sep. 30, 2015	Dec. 31, 2014
Other Assets [Abstract]
Repurchase eligible loans	[1]	$ 72	$ 53
Derivatives		42	33
Equity method investments		32	34
Income taxes receivable		28	2
Mortgage loans in foreclosure, net		26	32
Real estate owned, net		22	21
Deferred financing costs		15	19
Other		16	14
Total		$ 253	$ 208
Repurchase eligibility, prior number of days delinquent		90 days
[1]	Repurchase eligible loans represent certain mortgage loans sold pursuant to Government National Mortgage Association programs where the Company, as servicer, has the unilateral option to repurchase the loan if certain criteria are met, including if a loan is greater than 90 days delinquent and where it has been determined that there is more than a trivial benefit from exercising the repurchase option. Regardless of whether the repurchase option has been exercised, the Company must recognize eligible loans within Other assets and a corresponding repurchase liability within Accounts payable and accrued expenses in the Condensed Consolidated Balance Sheets.

Other Liabilities (Details)

Other Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Other Liabilities Disclosure [Abstract]
Litigation and regulatory reserves (Note 11)	$ 106	$ 29
Pension and other post employment benefits liability	11	11
Liability for income tax contingencies	8	9
Derivatives	5	7
Other	12	14
Total	$ 142	$ 70

Debt and Borrowing Arrangemen46

Debt and Borrowing Arrangements (Details) $ in Millions		1 Months Ended
		Jun. 30, 2015	Sep. 30, 2015USD ($)	Jul. 30, 2015	Dec. 31, 2014USD ($)
Debt and Borrowing Arrangements
Total Debt			$ 1,390		$ 1,739
Committed warehouse facilities
Debt and Borrowing Arrangements
Total Debt			$ 663		800
Weighted Avg-Interest Rate (as a percent)	[1]		2.20%
Available Capacity	[2]		$ 1,262
Uncommitted warehouse facilities
Debt and Borrowing Arrangements
Total Debt			$ 0		0
Weighted Avg-Interest Rate (as a percent)	[1]		0.00%
Available Capacity	[2]		$ 2,500
Asset-backed Securities
Debt and Borrowing Arrangements
Total Debt			$ 112		108
Weighted Avg-Interest Rate (as a percent)	[1]		2.20%
Available Capacity	[2]		$ 43
6.0% Convertible Notes due 2017
Debt and Borrowing Arrangements
Total Debt	[3]		$ 0		216
Stated interest rate (as a percentage)	[1],[3]		6.00%
Unamortized discount					$ 29
Effective interest rate (as a percent)			13.00%		13.00%
7.375% Senior notes due 2019
Debt and Borrowing Arrangements
Total Debt			$ 275		$ 275
Stated interest rate (as a percentage)	[1]		7.375%
6.375% Senior notes due 2021
Debt and Borrowing Arrangements
Total Debt			$ 340		340
Stated interest rate (as a percentage)	[1]		6.375%
Unsecured debt
Debt and Borrowing Arrangements
Total Debt			$ 615		$ 831
Unsecured debt | 6.0% Convertible Notes due 2017
Debt and Borrowing Arrangements
Stated interest rate (as a percentage)		6.00%		6.00%
Convertible instrument exchange ratio		0.0414611
[1]	Interest rate shown represents the stated interest rate of outstanding borrowings, which may differ from the effective rate due to the amortization of premiums, discounts and issuance costs. Warehouse facilities and the servicing advance facility are variable-rate. Rate shown for warehouse facilities represents the weighted-average rate of current outstanding borrowings.
[2]	Capacity is dependent upon maintaining compliance with, or obtaining waivers of, the terms, conditions and covenants of the respective agreements, including asset-eligibility requirements.
[3]	After the completion of the exchange offers described below, an insignificant amount of notes remain as of September 30, 2015. Amount is net of unamortized discount of $29 million as of December 31, 2014. The effective interest rate of the Convertible notes due in 2017 is 13%, including the accretion of the discount and issuance costs.

Debt and Borrowing Arrangemen47

Debt and Borrowing Arrangements (Details 2) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Debt and Borrowing Arrangements
Restricted cash	$ 43	$ 56
Servicing Advances Net	743	694
Mortgage loans held for sale (unpaid principal balance)	783	$ 915
Collateral Pledged | Warehouse Agreement Borrowings
Debt and Borrowing Arrangements
Restricted cash	7
Servicing Advances Net	0
Mortgage loans held for sale (unpaid principal balance)	697
Total	704
Collateral Pledged | Asset-backed Securities
Debt and Borrowing Arrangements
Restricted cash	8
Servicing Advances Net	159
Mortgage loans held for sale (unpaid principal balance)	0
Total	$ 167

Debt and Borrowing Arrangemen48

Debt and Borrowing Arrangements (Details 3) $ in Millions	Sep. 30, 2015USD ($)
Contractual debt maturities
Within one year	$ 775
Between one and two years	0
Between two and three years	0
Between three and four years	275
Between four and five years	0
Thereafter	340
Total	1,390
Warehouse Agreement Borrowings
Contractual debt maturities
Within one year	663
Between one and two years	0
Between two and three years	0
Between three and four years	0
Between four and five years	0
Thereafter	0
Total	663
Asset-backed Securities
Contractual debt maturities
Within one year	112	[1]
Between one and two years	0	[1]
Between two and three years	0	[1]
Between three and four years	0	[1]
Between four and five years	0	[1]
Thereafter	0	[1]
Total	112	[1]
Unsecured debt
Contractual debt maturities
Within one year	0
Between one and two years	0
Between two and three years	0
Between three and four years	275
Between four and five years	0
Thereafter	340
Total	$ 615
[1]	Maturities of the servicing advance facility represent estimated payments based on the expected cash inflows of the receivables.

Debt and Borrowing Arrangemen49

Debt and Borrowing Arrangements (Details 4)		Jun. 30, 2015USD ($)shares	Jul. 31, 2015USD ($)	Jun. 30, 2015USD ($)shares	Mar. 31, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Jul. 30, 2015	Jun. 11, 2015USD ($)	Apr. 07, 2015USD ($)
Debt and Borrowing Arrangements
Amount of shares issued from conversion (in shares) | shares		10,075,653
Loss on early extinguishment of debt						$ 24,000,000	$ 30,000,000	$ 24,000,000
Committed warehouse facilities | Wells Fargo Bank
Debt and Borrowing Arrangements
Increase in aggregate maximum principal					$ 100,000,000
Borrowing capacity					$ 450,000,000
Committed warehouse facilities | The Royal Bank of Scotland plc
Debt and Borrowing Arrangements
Terminated amount of debt instrument											$ 150,000,000
Wells Fargo Servicing Advance Facility | Asset-backed Securities
Debt and Borrowing Arrangements
Borrowing capacity										$ 155,000,000
6.0% Convertible Notes due 2017
Debt and Borrowing Arrangements
Convertible note percentage	[1],[2]						6.00%
6.0% Convertible Notes due 2017 | Unsecured debt
Debt and Borrowing Arrangements
Outstanding aggregate principal amount of convertible notes		$ 243,000,000		$ 243,000,000
Convertible note percentage		6.00%		6.00%					6.00%
Cash consideration for exchange of convertible instrument				$ 1,125
Convertible instrument exchange ratio				0.0414611
Repayments of Convertible Debt			$ 4,000,000	$ 274,000,000
Amount of shares issued from conversion (in shares) | shares				10,076,000
Loss on early extinguishment of debt							$ 30,000,000
[1]	After the completion of the exchange offers described below, an insignificant amount of notes remain as of September 30, 2015. Amount is net of unamortized discount of $29 million as of December 31, 2014. The effective interest rate of the Convertible notes due in 2017 is 13%, including the accretion of the discount and issuance costs.
[2]	Interest rate shown represents the stated interest rate of outstanding borrowings, which may differ from the effective rate due to the amortization of premiums, discounts and issuance costs. Warehouse facilities and the servicing advance facility are variable-rate. Rate shown for warehouse facilities represents the weighted-average rate of current outstanding borrowings.

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
State and local income taxes, net of federal tax benefits	$ (7)	$ (2)	$ (8)	$ (7)
Liabilities for income tax contingencies	0	3	0	3
Changes in rate and apportionment factors	0	(5)	0	(4)
Changes in valuation allowance	2	8	5	7
Nondeductible expenses	0	1	6	1
Noncontrolling interest	(1)	(1)	(4)	(2)
Other	$ (4)	$ (3)	$ (4)	$ (2)

Credit Risk (Details)

Credit Risk (Details) $ in Millions		9 Months Ended
		Sep. 30, 2015USD ($)loan	Dec. 31, 2014USD ($)loan
Credit Risk
Period of origination of loans within which they are sold to investors		30 days
Loan Servicing Portfolio Composition
Total servicing portfolio		$ 226,949	$ 227,272
Weighted-average interest rate (as a percent)		3.80%	3.90%
Portfolio Delinquency
Number of Loans (as a percent)	[1]	3.58%	4.14%
Unpaid Balance (as a percent)	[1]	2.56%	3.01%
Foreclosure/real estate owned
Number of Loans (as a percent)	[1],[2]	1.97%	2.22%
Unpaid Balance (as a percent)	[1],[2]	1.73%	2.04%
Number of loans in foreclosure | loan		18,137	21,456
Unpaid principal balance of loans in foreclosure		$ 3,500	$ 4,100
30 days
Portfolio Delinquency
Number of Loans (as a percent)	[1]	2.28%	2.43%
Unpaid Balance (as a percent)	[1]	1.62%	1.75%
60 days
Portfolio Delinquency
Number of Loans (as a percent)	[1]	0.43%	0.58%
Unpaid Balance (as a percent)	[1]	0.30%	0.41%
90 or more days
Portfolio Delinquency
Number of Loans (as a percent)	[1]	0.87%	1.13%
Unpaid Balance (as a percent)	[1]	0.64%	0.85%
Conventional loans
Loan Servicing Portfolio Composition
Total servicing portfolio		$ 198,608	$ 195,184
Government loans
Loan Servicing Portfolio Composition
Total servicing portfolio		24,116	27,720
Home equity lines of credit
Loan Servicing Portfolio Composition
Total servicing portfolio		4,225	4,368
Owned
Loan Servicing Portfolio Composition
Total servicing portfolio		102,945	113,849
Subserviced
Loan Servicing Portfolio Composition
Total servicing portfolio		$ 124,004	$ 113,423
[1]	Represents portfolio delinquencies as a percentage of the total number of loans and the total unpaid balance of the portfolio.
[2]	As of September 30, 2015 and December 31, 2014, the total servicing portfolio included 18,137 and 21,456 of loans in foreclosure with an unpaid principal balance of $3.5 billion and $4.1 billion, respectively.

Credit Risk (Details 2)

Credit Risk (Details 2) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Loss contingencies
Estimated amount of reasonably possible losses in excess of the recorded liability	$ 150
Changes in repurchase and foreclosure-related reserves
Balance, beginning of period	93	$ 142
Realized losses	(15)	(46)
Increase (Decrease) in reserves due to:
Changes in assumptions	5	2
New loan sales	10	5
Balance, end of period	93	$ 103
Loans with full risk of loss or with respect to which the company has identified a breach of representation and warranty provisions	$ 171
Percentage of loans with full risk of loss or with respect to which the company has identified a breach of representation and warranty provisions and are at least 90 days delinquent	10.00%
Loan repurchase and indemnification liability	$ 66		$ 63
Recourse obligations
Loss contingencies
Estimated amount of reasonably possible losses in excess of the recorded liability	$ 30

Credit Risk (Details 3)

Credit Risk (Details 3) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Carrying values of the mortgage loans in foreclosure and real estate owned
Mortgage loans in foreclosure and related advances	$ 37	$ 46
Allowance for probable foreclosure losses	(11)	(14)
Mortgage loans in foreclosure, net	26	32
Real estate owned and related advances	38	37
Adjustment to value for real estate owned	(16)	(16)
Real estate owned, net	$ 22	$ 21

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	Jun. 30, 2015	Sep. 30, 2015	Dec. 31, 2014	Nov. 30, 2014
Loss Contingencies [Line Items]
Reserves amount associated with legal and regulatory contingencies		$ 106	$ 29
Estimated amount of reasonably possible losses in excess of the recorded liability		$ 150
Unfavorable Regulatory Action
Loss Contingencies [Line Items]
Received recommended decision from administrative law judge				$ 6.4
Final order amount company must pay	$ 109

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Fair Value Measurements
Mortgage servicing rights	$ 927	$ 1,005	$ 1,114	$ 1,279
Other assets—Derivative assets, Total	42	33
Other liabilities-derivative liabilities, Total	5	7
Recurring basis | Interest rate lock commitments
Fair Value Measurements
Other assets—Derivative assets, Cash Collateral and Netting	0	0
Other liabilities-derivative liabilities, Cash Collateral and Netting	0
Recurring basis | Forward delivery commitments
Fair Value Measurements
Other assets—Derivative assets, Cash Collateral and Netting	(4)	(2)
Other liabilities-derivative liabilities, Cash Collateral and Netting	(11)	(7)
Recurring basis | MSR-related agreements
Fair Value Measurements
Other assets—Derivative assets, Cash Collateral and Netting	(43)	(58)
Recurring basis | Level One
Fair Value Measurements
Mortgage loans held for sale	0	0
Mortgage servicing rights	0	0
Recurring basis | Level One | Interest rate lock commitments
Fair Value Measurements
Other assets—Derivative assets	0	0
Other liabilities-derivative liabilities	0
Recurring basis | Level One | Forward delivery commitments
Fair Value Measurements
Other assets—Derivative assets	0	0
Other liabilities-derivative liabilities	0	0
Recurring basis | Level One | MSR-related agreements
Fair Value Measurements
Other assets—Derivative assets	0	0
Recurring basis | Level Two
Fair Value Measurements
Mortgage loans held for sale	744	873
Mortgage servicing rights	0	0
Recurring basis | Level Two | Interest rate lock commitments
Fair Value Measurements
Other assets—Derivative assets	0	0
Other liabilities-derivative liabilities	0
Recurring basis | Level Two | Forward delivery commitments
Fair Value Measurements
Other assets—Derivative assets	5	5
Other liabilities-derivative liabilities	16	14
Recurring basis | Level Two | MSR-related agreements
Fair Value Measurements
Other assets—Derivative assets	55	66
Recurring basis | Level Three
Fair Value Measurements
Mortgage loans held for sale	39	42
Mortgage servicing rights	927	1,005
Recurring basis | Level Three | Interest rate lock commitments
Fair Value Measurements
Other assets—Derivative assets	29	22
Other liabilities-derivative liabilities	0
Recurring basis | Level Three | Forward delivery commitments
Fair Value Measurements
Other assets—Derivative assets	0	0
Other liabilities-derivative liabilities	0	0
Recurring basis | Level Three | MSR-related agreements
Fair Value Measurements
Other assets—Derivative assets	0	0
Total | Recurring basis
Fair Value Measurements
Mortgage loans held for sale	783	915
Mortgage servicing rights	927	1,005
Total | Recurring basis | Interest rate lock commitments
Fair Value Measurements
Other assets—Derivative assets, Total	29	22
Other liabilities-derivative liabilities, Total	0
Total | Recurring basis | Forward delivery commitments
Fair Value Measurements
Other assets—Derivative assets, Total	1	3
Other liabilities-derivative liabilities, Total	5	7
Total | Recurring basis | MSR-related agreements
Fair Value Measurements
Other assets—Derivative assets, Total	$ 12	$ 8

Fair Value Measurements (Deta56

Fair Value Measurements (Details 2) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Difference between carrying amounts measured at fair value and aggregate unpaid principal amount
Carrying amount, Total	$ 783	$ 915
Mortgage loans held for sale
Difference between carrying amounts measured at fair value and aggregate unpaid principal amount
Carrying amount, Total	783	915
Carrying amount, Loans 90 days or more past due and on non-accrual status	8	13
Aggregate unpaid principal balance, Total	773	903
Aggregate unpaid principal balance, Loans 90 days or more past due and on non-accrual status	11	17
Difference, Total	10	12
Difference, Loans 90 days or more past due and on non-accrual status	$ (3)	$ (4)

Fair Value Measurements (Deta57

Fair Value Measurements (Details 3) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Components of Mortgage loans held for sale
Mortgage loans held for sale	$ 783	$ 915
First mortgages
Components of Mortgage loans held for sale
Mortgage loans held for sale	743	872
First mortgages, Conforming
Components of Mortgage loans held for sale
Mortgage loans held for sale	675	761
First mortgages, Non-conforming
Components of Mortgage loans held for sale
Mortgage loans held for sale	68	111
Second lien
Components of Mortgage loans held for sale
Mortgage loans held for sale	5	5
Scratch and Dent
Components of Mortgage loans held for sale
Mortgage loans held for sale	34	37
Other
Components of Mortgage loans held for sale
Mortgage loans held for sale	$ 1	$ 1

Fair Value Measurements (Deta58

Fair Value Measurements (Details 4) - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Information regarding the initial and ending capitalization rate of MSRs
Initial capitalization rate of additions to MSRs (as a percent)	1.13%	1.09%
Capitalization servicing rate (as a percent)	0.91%		0.89%
Capitalization servicing multiple	3.20%		3.10%
Weighted-average servicing fee, in basis points (as a percent)	0.29%		0.29%
Significant assumptions used in estimating fair value
Change in fair value of MSRs as a result of model update	$ 9	$ (97)
Mortgage servicing rights
Significant assumptions used in estimating fair value
Weighted-average prepayment speed (CPR) (as a percent)	9.20%		11.50%
Option adjusted spread, in basis points (as a percent)	9.34%		8.65%
Weighted-average delinquency rate (as a percent)	4.60%		5.00%
Mortgage servicing rights | Prepayment Risk and Market Data
Significant assumptions used in estimating fair value
Change in fair value of MSRs as a result of model update	$ 46

Fair Value Measurements (Deta59

Fair Value Measurements (Details 5) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Derivative Instruments
Average pull through percentage used in measuring fair value of interest rate lock commitments	72.00%	74.00%
Mortgage servicing rights
Estimated change in fair value from adverse changes in significant assumptions
Impact on fair value of 10% adverse change, Weighted-Average Prepayment Speed	$ (36)
Impact on fair value of 20% adverse change, Weighted-Average Prepayment Speed	(70)
Impact on fair value of 10% adverse change, Option Adjusted Spread	(44)
Impact on fair value of 20% adverse change, Option Adjusted Spread	(84)
Impact on fair value of 10% adverse change, Weighted Average Delinquency Rate	(23)
Impact on fair value of 20% adverse change, Weighted Average Delinquency Rate	$ (46)

Fair Value Measurements (Deta60

Fair Value Measurements (Details 6) - Level Three - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Interest rate lock commitments
Activity in assets classified within Level Three of the valuation hierarchy
Balance, beginning of period	$ 22	$ 35	$ 22	$ 22
Realized and unrealized gains (losses)	81	63	216	232
Purchases	0	0	0	0
Issuances	0	0	0	0
Settlements	(74)	(77)	(209)	(233)
Transfers into Level Three	0	0	0	0
Transfers out of Level Three	0	0	0	0
Balance, end of period	29	21	29	21
Mortgage loans held for sale
Activity in assets classified within Level Three of the valuation hierarchy
Balance, beginning of period	48	57	42	49
Realized and unrealized gains (losses)	1	(2)	5	(5)
Purchases	7	9	24	39
Issuances	2	1	4	3
Settlements	(18)	(14)	(31)	(32)
Transfers into Level Three	8	12	23	26
Transfers out of Level Three	(9)	(9)	(28)	(26)
Balance, end of period	39	54	39	54
Mortgage servicing rights
Activity in assets classified within Level Three of the valuation hierarchy
Balance, beginning of period	1,020	1,187	1,005	1,279
Realized and unrealized gains (losses)	(115)	(84)	(123)	(215)
Purchases	0	0	0	0
Issuances	32	30	80	76
Settlements	(10)	(19)	(35)	(26)
Transfers into Level Three	0	0	0	0
Transfers out of Level Three	0	0	0	0
Balance, end of period	$ 927	$ 1,114	$ 927	$ 1,114

Fair Value Measurements (Deta61

Fair Value Measurements (Details 7) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Gain on loans held for sale, net
Unrealized gains (losses) related to assets and liabilities included in Condensed Consolidated Balance Sheets
Unrealized Gain or Loss for Level 3 Fair Value instruments	$ 27	$ 16	$ 26	$ 12
Change in fair value of mortgage servicing rights
Unrealized gains (losses) related to assets and liabilities included in Condensed Consolidated Balance Sheets
Unrealized Gain or Loss for Level 3 Fair Value instruments	(72)	(40)	9	(97)
Interest rate lock commitments | Gain on loans held for sale, net
Realized and unrealized gains and losses related to assets and liabilities
Realized and Unrealized Gain or Loss from Level 3 Fair Value instruments	81	63	216	232
Mortgage loans held for sale | Gain on loans held for sale, net
Realized and unrealized gains and losses related to assets and liabilities
Realized and Unrealized Gain or Loss from Level 3 Fair Value instruments	0	(3)	1	(8)
Mortgage loans held for sale | Interest income
Realized and unrealized gains and losses related to assets and liabilities
Realized and Unrealized Gain or Loss from Level 3 Fair Value instruments	1	1	4	3
Mortgage servicing rights | Change in fair value of mortgage servicing rights
Realized and unrealized gains and losses related to assets and liabilities
Realized and Unrealized Gain or Loss from Level 3 Fair Value instruments	(115)	$ (84)	(123)	$ (215)
Level Two
Debt
Fair value of debt	1,400		1,400		$ 2,000
Level Two | Market based approach
Debt
Fair value of debt	600		600
Level Two | Observable spreads and terms for recent pricing of similar instruments
Debt
Fair value of debt	$ 800		$ 800

Variable Interest Entities (Det

Variable Interest Entities (Details) - USD ($) $ in Millions		Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
ASSETS
Cash and cash equivalents		$ 982	$ 1,259	$ 1,451
Restricted cash		43	56
Mortgage loans held for sale		783	915
Accounts receivable, net		88	123
Servicing advances, net		743	694
Property and equipment, net		46	36
Other assets		253	208
Total assets	[1]	3,865	4,296
LIABILITIES
Accounts payable and accrued expenses		228	244
Debt		1,390	1,739
Other liabilities		142	70
Total liabilities	[1]	2,386	2,725
Variable Interest Entity
ASSETS
Cash and cash equivalents		101	85
Restricted cash		12	23
Mortgage loans held for sale		379	378
Accounts receivable, net		11	8
Servicing advances, net		159	155
Property and equipment, net		1	1
Other assets		8	8
Total assets		671	658
LIABILITIES
Accounts payable and accrued expenses		19	16
Debt		456	443
Other liabilities		11	11
Total liabilities		486	470
PHH Home Loans | Variable Interest Entity
ASSETS
Cash and cash equivalents		101	82
Restricted cash		4	3
Mortgage loans held for sale		379	378
Accounts receivable, net		11	8
Servicing advances, net		0	0
Property and equipment, net		1	1
Other assets		7	8
Total assets		503	480
Assets held as collateral		360	353
LIABILITIES
Accounts payable and accrued expenses		19	16
Debt		344	335
Other liabilities		11	10
Total liabilities	[2]	374	361
Servicing Advance Receivables Trust | Variable Interest Entity
ASSETS
Cash and cash equivalents		0	0
Restricted cash		8	20
Mortgage loans held for sale		0	0
Accounts receivable, net		0	0
Servicing advances, net		159	155
Property and equipment, net		0	0
Other assets		1	0
Total assets		168	175
Assets held as collateral		167	175
LIABILITIES
Accounts payable and accrued expenses		0	0
Debt		112	108
Other liabilities		0	0
Total liabilities	[2]	$ 112	$ 108
[1]	The Condensed Consolidated Balance Sheets include assets of variable interest entities which can be used only to settle the obligations and liabilities of variable interest entities which creditors or beneficial interest holders do not have recourse to PHH Corporation and subsidiaries as follows: September 30, 2015 December 31, 2014ASSETS Cash and cash equivalents$101 $85Restricted cash12 23Mortgage loans held for sale379 378Accounts receivable, net11 8Servicing advances, net159 155Property and equipment, net1 1Other assets8 8Total assets$671 $658 LIABILITIES Accounts payable and accrued expenses$19 $16Debt456 443Other liabilities11 11Total liabilities$486 $470
[2]	Excludes intercompany payables.

Segment Information (Details)

Segment Information (Details) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)segment	Sep. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment				2
Segment Information
Assets	[1]	$ 3,865		$ 3,865		$ 4,296
Net Revenues		169	$ 152	667	$ 459
Segment Profit (Loss)	[2]	(90)	(132)	(141)	(248)
Loss on early extinguishment of debt			24	30	24
Other
Segment Information
Assets		863		863		1,163
Net Revenues		0	6	6	6
Segment Profit (Loss)	[2],[3]	(3)	(33)	(49)	(43)
Mortgage Production segment | Operating segment
Segment Information
Assets		1,120		1,120		1,209
Net Revenues		149	132	460	343
Segment Profit (Loss)	[2]	(10)	(28)	(26)	(115)
Mortgage Servicing segment | Operating segment
Segment Information
Assets		1,882		1,882		$ 1,924
Net Revenues		20	14	201	110
Segment Profit (Loss)	[2]	$ (77)	$ (71)	$ (66)	$ (90)
[1]	The Condensed Consolidated Balance Sheets include assets of variable interest entities which can be used only to settle the obligations and liabilities of variable interest entities which creditors or beneficial interest holders do not have recourse to PHH Corporation and subsidiaries as follows: September 30, 2015 December 31, 2014ASSETS Cash and cash equivalents$101 $85Restricted cash12 23Mortgage loans held for sale379 378Accounts receivable, net11 8Servicing advances, net159 155Property and equipment, net1 1Other assets8 8Total assets$671 $658 LIABILITIES Accounts payable and accrued expenses$19 $16Debt456 443Other liabilities11 11Total liabilities$486 $470
[2]	The following is a reconciliation of Loss from continuing operations before income taxes to Segment loss: Three Months EndedSeptember 30, Nine Months EndedSeptember 30, 2015 2014 2015 2014 (In millions)Loss from continuing operations before income taxes$(87) $(129) $(130) $(243)Less: net income attributable to noncontrolling interest3 3 11 5Segment loss$(90) $(132) $(141) $(248)
[3]	For the nine months ended September 30, 2015, the net results for Other include a $30 million pre-tax loss on the exchange of the Convertible notes due in 2017. For the three and nine months ended September 30, 2014, the net results for Other include a $24 million pre-tax loss related to the early repayment of the Senior Notes due in 2016.

Segment Information (Details 2)

Segment Information (Details 2) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Reconciliation of (Loss) income before income taxes to Segment (loss) profit
Loss from continuing operations before income taxes		$ (87)	$ (129)	$ (130)	$ (243)
Less: net income attributable to noncontrolling interest		3	3	11	5
Segment loss	[1]	$ (90)	$ (132)	$ (141)	$ (248)
[1]	The following is a reconciliation of Loss from continuing operations before income taxes to Segment loss: Three Months EndedSeptember 30, Nine Months EndedSeptember 30, 2015 2014 2015 2014 (In millions)Loss from continuing operations before income taxes$(87) $(129) $(130) $(243)Less: net income attributable to noncontrolling interest3 3 11 5Segment loss$(90) $(132) $(141) $(248)