PHH 10-Q 9 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 03, 2016
Document and Entity Information
Entity Registrant Name	PHH CORP
Entity Central Index Key	77,776
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding (in shares)		53,599,433

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
REVENUES
Origination and other loan fees	$ 75	$ 75	$ 215	$ 220
Gain on loans held for sale, net	87	69	212	237
Net loan servicing income:
Loan servicing income	89	94	271	298
Change in fair value of mortgage servicing rights	(46)	(115)	(272)	(123)
Net derivative (loss) gain related to mortgage servicing rights	(4)	50	139	54
Net loan servicing income	39	29	138	229
Net interest expense:
Interest income	11	13	32	35
Secured interest expense	(8)	(9)	(24)	(27)
Unsecured interest expense	(10)	(11)	(31)	(44)
Net interest expense	(7)	(7)	(23)	(36)
Other income	3	3	8	17
Net revenues	197	169	550	667
EXPENSES
Salaries and related expenses	86	79	268	251
Commissions	19	19	49	65
Loan origination expenses	18	23	52	72
Foreclosure and repossession expenses	10	11	26	41
Professional and third-party service fees	35	39	111	126
Technology equipment and software expenses	10	9	30	28
Occupancy and other office expenses	11	15	35	39
Depreciation and amortization	4	4	13	13
Other operating expenses	33	57	64	162
Total expenses	226	256	648	797
Loss before income taxes	(29)	(87)	(98)	(130)
Income tax benefit	(8)	(40)	(38)	(50)
Net loss	(21)	(47)	(60)	(80)
Less: net income attributable to noncontrolling interest	6	3	9	11
Net loss attributable to PHH Corporation	$ (27)	$ (50)	$ (69)	$ (91)
Basic and Diluted loss per share attributable to PHH Corporation (in usd per share)	$ (0.50)	$ (0.84)	$ (1.28)	$ (1.68)

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (21)	$ (47)	$ (60)	$ (80)
Other comprehensive income, net of tax:
Change in unfunded pension liability, net	1	0	1	1
Total other comprehensive income, net of tax	1	0	1	1
Total comprehensive loss	(20)	(47)	(59)	(79)
Less: comprehensive income attributable to noncontrolling interest	6	3	9	11
Comprehensive loss attributable to PHH Corporation	$ (26)	$ (50)	$ (68)	$ (90)

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions		Sep. 30, 2016	Dec. 31, 2015
ASSETS
Cash and cash equivalents		$ 996	$ 906
Restricted cash		50	47
Mortgage loans held for sale		761	743
Accounts receivable, net		89	81
Servicing advances, net		668	691
Mortgage servicing rights		645	880
Property and equipment, net		50	47
Other assets		187	247
Total assets	[1]	3,446	3,642
LIABILITIES
Accounts payable and accrued expenses		200	251
Subservicing advance liabilities		318	314
Debt		1,332	1,348
Deferred taxes		117	182
Loan repurchase and indemnification liability		65	62
Other liabilities		154	137
Total liabilities	[1]	2,186	2,294
Commitments and contingencies (Note 10)
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; 53,585,565 shares issued and outstanding at September 30, 2016; 55,007,983 shares issued and outstanding at December 31, 2015		1	1
Additional paid-in capital		885	911
Retained earnings		347	416
Accumulated other comprehensive loss	[2]	(9)	(10)
Total PHH Corporation stockholders’ equity		1,224	1,318
Noncontrolling interest		36	30
Total equity		1,260	1,348
Total liabilities and equity		3,446	3,642
Variable Interest Entity
ASSETS
Cash and cash equivalents		61	80
Restricted cash		20	18
Mortgage loans held for sale		436	389
Accounts receivable, net		26	5
Servicing advances, net		153	157
Property and equipment, net		1	1
Other assets		19	12
Total assets		716	662
LIABILITIES
Accounts payable and accrued expenses		15	14
Debt		486	456
Other liabilities		6	6
Total liabilities		$ 507	$ 476
[1]	The Condensed Consolidated Balance Sheets include assets and liabilities of variable interest entities. The assets can be used only to settle the obligations of the variable interest entities, and the liabilities have creditors or beneficial interest holders that do not have recourse to PHH Corporation and subsidiaries. These assets and liabilities are as follows: September 30, 2016 December 31, 2015ASSETS Cash and cash equivalents$61 $80Restricted cash20 18Mortgage loans held for sale436 389Accounts receivable, net26 5Servicing advances, net153 157Property and equipment, net1 1Other assets19 12Total assets$716 $662 LIABILITIES Accounts payable and accrued expenses$15 $14Debt486 456Other liabilities6 6Total liabilities$507 $476
[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, 2016 and December 31, 2015. During both the three and nine months ended September 30, 2016 and September 30, 2015, there were no amounts reclassified out of Accumulated other comprehensive loss.

CONDENSED CONSOLIDATED BALANCE5

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
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)	53,585,565		53,585,565		55,007,983
Common stock, shares outstanding (in shares)	53,585,565		53,585,565		55,007,983
Pension adjustment, income tax benefit	$ 6,000,000		$ 6,000,000		$ 6,000,000
Amounts reclassified out of accumulated other comprehensive loss	$ 0	$ 0	$ 0	$ 0

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Millions	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interest
Beginning Balance at Dec. 31, 2014	$ 1,571	$ 1	$ 989	$ 566	$ (11)	$ 26
Beginning Balance (in shares) at Dec. 31, 2014		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	(18)	$ 1	(19)
Conversion of Convertible Notes (in shares)		10,075,653
Recognition of deferred taxes related to Convertible notes	2		2
Ending Balance at Sep. 30, 2015	1,479	$ 1	986	470	(10)	32
Ending Balance (in shares) at Sep. 30, 2015		59,848,025
Beginning Balance at Dec. 31, 2015	$ 1,348	$ 1	911	416	(10)	30
Beginning Balance (in shares) at Dec. 31, 2015	55,007,983	55,007,983
Increase (Decrease) in Stockholders' Equity
Total comprehensive (loss) income	$ (59)			(69)	1	9
Distributions to noncontrolling interest	(3)					(3)
Stock compensation expense	6		6
Stock issued under share-based payment plans	(9)		(9)
Stock issued under share-based payment plans (in shares)		86,354
Repurchase of Common stock	(23)	$ 0	(23)	0
Repurchase of Common stock (in shares)		(1,508,772)
Ending Balance at Sep. 30, 2016	$ 1,260	$ 1	$ 885	$ 347	$ (9)	$ 36
Ending Balance (in shares) at Sep. 30, 2016	53,585,565	53,585,565

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Parenthetical) $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)
Statement of Stockholders' Equity [Abstract]
Excess tax shortfall from Deficiency from share-based compensation	$ 9

CONDENSED CONSOLIDATED STATEME8

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net loss	$ (60)	$ (80)
Adjustments to reconcile Net loss to net cash used in operating activities:
Capitalization of originated mortgage servicing rights	(45)	(80)
Net loss on mortgage servicing rights and related derivatives	133	69
Loss on early extinguishment of debt	0	30
Origination of mortgage loans held for sale	(7,848)	(10,910)
Proceeds on sale of and payments from mortgage loans held for sale	8,029	11,245
Net gain on interest rate lock commitments, mortgage loans held for sale and related derivatives	(219)	(218)
Depreciation and amortization	13	13
Deferred income tax benefit	(75)	(54)
Other adjustments and changes in other assets and liabilities, net	92	44
Net cash provided by operating activities	20	59
Cash flows from investing activities:
Net cash received on derivatives related to mortgage servicing rights	121	49
Proceeds on sale of mortgage servicing rights	7	45
Purchases of property and equipment	(13)	(25)
(Increase) decrease in restricted cash	(3)	13
Other, net	5	2
Net cash provided by investing activities	117	84
Cash flows from financing activities:
Proceeds from secured borrowings	9,301	13,845
Principal payments on secured borrowings	(9,319)	(13,978)
Principal payments on unsecured borrowings	0	(245)
Cash tender premiums for convertible debt	0	(30)
Repurchase of Common stock	(23)	0
Cash paid for debt issuance costs	(3)	(6)
Distributions to noncontrolling interest	(3)	(5)
Issuances of Common stock	0	2
Other, net	0	(3)
Net cash used in financing activities	(47)	(420)
Net increase (decrease) in Cash and cash equivalents	90	(277)
Cash and cash equivalents at beginning of period	906	1,259
Cash and cash equivalents at end of period	$ 996	$ 982

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
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 originated and purchased loans, and acts as a subservicer. 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 the ownership interest of Realogy Services Venture Partner LLC, a subsidiary of Realogy Holdings Corp. ("Realogy") 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 2015 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. 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 Share-Based Payments. In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition, rather than being reflected in estimating the grant-date fair value of the award. The Company adopted this guidance prospectively as of January 1, 2016, and there was no impact to the Company's financial statements. 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. This guidance was adopted retrospectively as of January 1, 2016, and the Company updated its consolidation analyses for relevant entities. The adoption of this update did not change any consolidation conclusions, and there was no impact to the Company's financial statements or disclosures. 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 that 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 Company adopted this guidance retrospectively as of January 1, 2016 which resulted in a $10 million decrease to both Other assets and Debt in the Condensed Consolidated Balance Sheets as of December 31, 2015 . The Company elected not to reclass debt issuance costs related to line-of-credit and mortgage warehouse arrangements, which continue to be presented in Other assets for all periods. The adoption of this standard did 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 Company adopted this guidance prospectively to all arrangements entered into or materially modified after January 1, 2016. The adoption of this standard did not have an impact to the Company's financial statements. Recently Issued Accounting Pronouncements Financial Instruments. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” This update revises an entity's accounting related to the classification and measurement of investments in equity securities (except those accounted for under the equity method of accounting or those that result in consolidation of the investee), changes the presentation of certain fair value changes relating to instrument specific credit risk for financial liabilities and amends certain disclosure requirements associated with the fair value of financial instruments. This update is effective for the first interim and annual periods beginning after December 15, 2017 with early adoption permitted for certain provisions of the update. The Company is currently evaluating the impact of adopting this new standard. In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This standard is applicable to financial instruments not accounted for at fair value, including but not limited to, trade receivables and off-balance sheet credit exposures. This update is effective for the first interim and annual periods beginning after December 15, 2019, with early adoption permitted for fiscal years beginning after December 15, 2018. At adoption, this update will be applied using a modified retrospective approach. The Company is currently evaluating the impact of adopting this new standard. Leases. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This update revises an entity’s accounting for operating leases by a lessee, among other changes, and requires a lessee to recognize a liability to make lease payments and an asset representing its right to use the underlying asset for the lease term in the statement of financial position. The distinction between finance and operating leases has not changed and the update does not significantly change the effect of finance and operating leases on the statement of comprehensive income and the statement of cash flows. Additionally, this update requires both qualitative and specific quantitative disclosures. This update is effective for the first interim and annual periods beginning after December 15, 2018, with early adoption permitted. At adoption, this update will be applied using a modified retrospective approach. The Company is currently evaluating the impact of adopting this new standard. Derivatives and Hedging. In March 2016, the FASB issued ASU 2016-06, “Contingent Put and Call Options in Debt Instruments.” This update clarifies that in assessing whether an embedded contingent put or call option is clearly and closely related to the debt host, an entity is required to perform only a specific four-step decision sequence. An entity is no longer required to assess whether the contingency for exercising the option is indexed to interest rate or credit risk. This update is effective for the first interim and annual periods beginning after December 15, 2016, with early adoption permitted. At adoption, this update will be applied using a modified retrospective approach. The Company is currently evaluating the impact of adopting this new standard. Revenue Recognition. The FASB has issued several amendments to the new revenue standard ASU 2014-09 (as amended by ASU 2015-14), including: • ASU 2016-08, “Principal Versus Agent Considerations (Reporting Revenue Gross versus Net).” The amendments to this update were issued in March 2016 and are intended to improve the implementation guidance on principal versus agent considerations in ASU 2014-09 by clarifying how an entity should identify the unit of accounting (i.e. the specified good or service) and how an entity should apply the control principle to certain types of arrangements. • ASU 2016-10, “Identifying Performance Obligations and Licensing.” The amendments to this update were issued in April 2016 and are intended to improve the implementation guidance on identifying performance obligations by reducing the cost and complexity of identifying promised goods or services and improving the guidance for determining whether promises are separately identifiable. The amendments also provide implementation guidance on accounting for licenses of intellectual property. • ASU 2016-12, "Narrow-Scope Improvements and Practical Expedients." The amendments to this update were issued in May 2016 and clarify certain core recognition principles and provide practical expedients available at transition. The improvements address collectability, sales tax presentation, noncash consideration, contract modifications and completed contracts at transition. Consistent with ASU 2014-09 (as amended by ASU 2015-14), these updates are to be applied retrospectively to all prior periods presented or through a cumulative adjustment in the year of adoption, and are effective 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 does not expect to early adopt the revenue standard amendments and is currently evaluating the impact of adoption. Share-Based Payments. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting." This update is intended to simplify several aspects of the accounting for share-based payment transactions, including accounting for income taxes, the classification of awards as either equity or liabilities and the classification of excess tax benefits and payments for tax withholdings on the statement of cash flows. This update is effective for the first interim and annual periods beginning after December 15, 2016, with early adoption permitted. At adoption, this update will be applied either prospectively, retrospectively or by using a modified retrospective approach, depending on the area of change. The Company is currently evaluating the impact of adopting this new standard. Statement of Cash Flows. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments." This update addresses eight specific cash flow issues and is intended to reduce diversity in practice in how entities present and classify certain cash receipts and cash payments in the statement of cash flows. This update is effective for the first interim and annual periods beginning after December 15, 2017, with early adoption permitted. At adoption, this update will be applied retrospectively. For issues that are impracticable to apply retrospectively, the amendments may be applied prospectively from the earliest date practicable. The Company is currently evaluating the impact of adopting this new standard. Consolidation. In October 2016, the FASB issued ASU 2016-17, "Interests Held through Related Parties That Are under Common Control." This update requires an entity to include indirect interest held through related parties that are under common control on a proportionate basis when evaluating if a reporting entity is the primary beneficiary of a variable interest entity. This update is effective for the first interim and annual periods beginning after December 15, 2016, with early adoption permitted. At adoption, this update will be applied retrospectively. The Company is currently evaluating the impact of adopting this new standard.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Earnings Per Share	2. 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 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 by the weighted-average number of shares outstanding during the period, assuming all potentially dilutive common shares were issued. Share repurchases or issuances are included in the outstanding shares as of each settlement date. 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: (i) outstanding stock-based compensation awards representing shares from restricted stock units and stock options; and (ii) stock assumed to be issued related to convertible notes. Weighted-average common shares outstanding includes the following activity: • the repurchase of 1,508,772 shares during January 2016 under an open market repurchase program; • the issuance of 10,075,653 shares during June 2015 which represented the amount by which the conversion value exceeded the note principal under an exchange offer of certain convertible debt; and • the receipt and retirement of 1,574,252 shares during March 2015 which represented the final delivery of shares under accelerated repurchase programs. 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 2016 2015 2016 2015 (In millions, except share and per share data) Net loss attributable to PHH Corporation $ (27 ) $ (50 ) $ (69 ) $ (91 ) Weighted-average common shares outstanding — basic & diluted 53,578,044 59,830,544 53,616,403 54,078,072 Basic and Diluted loss per share attributable to PHH Corporation $ (0.50 ) $ (0.84 ) $ (1.28 ) $ (1.68 ) The following table summarizes anti-dilutive securities excluded from the computation of diluted shares: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Outstanding stock-based compensation awards (1) 1,971,055 1,386,775 1,971,055 1,386,775 Assumed conversion of debt securities — 7,001 — 5,804,349 ——————— (1) For the three and nine months ended September 30, 2016 , excludes 383,400 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, 2016
Transfers and Servicing [Abstract]
Transfers and Servicing of Mortgage Loans	3. 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 mortgage servicing rights ("MSRs") and/or recourse obligations, as discussed further in Note 9, 'Credit Risk' . 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 $227.9 billion and $226.3 billion , as of September 30, 2016 and December 31, 2015 , respectively. MSRs recorded in the Condensed Consolidated Balance Sheets are related to the capitalized servicing portfolio and are created primarily through sales of originated loans on a servicing-retained basis or through the direct purchase of servicing from a third party. The approval or consents of the Agencies may be required prior to the Company completing sales of MSRs. In addition, as of September 30, 2016 , 27% of the capitalized MSRs were specifically restricted from sale without prior approval from private label clients or private investors. The Company has agreements to sell a portion of its newly-created MSRs to third parties and will have continuing involvement as a subservicer. As of September 30, 2016 , the Company had commitments to sell MSRs related to $109 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 $329 million of the unpaid principal balance of loans, with a fair value of MSRs of $4 million , that were included in the capitalized servicing portfolio. In November 2016, the Company entered into a commitment to sell an additional population of its MSRs, as discussed further in Note 14, 'Subsequent Events' . The activity in the loan servicing portfolio associated with capitalized mortgage servicing rights consisted of: Nine Months Ended 2016 2015 (In millions) Balance, beginning of period $ 98,990 $ 112,686 Additions 4,476 7,086 Payoffs and curtailments (14,102 ) (14,854 ) Sales (742 ) (3,080 ) Balance, end of period $ 88,622 $ 101,838 The activity in capitalized MSRs consisted of: Nine Months Ended 2016 2015 (In millions) Balance, beginning of period $ 880 $ 1,005 Additions 45 80 Sales (8 ) (35 ) Changes in fair value due to: Realization of expected cash flows (98 ) (132 ) Changes in market inputs or assumptions used in the valuation model (174 ) 9 Balance, end of period $ 645 $ 927 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 2016 2015 2016 2015 (In millions) Servicing fees from capitalized portfolio $ 67 $ 72 $ 204 $ 228 Late fees 3 4 11 11 Other ancillary servicing revenue 6 4 14 19 As of September 30, 2016 and December 31, 2015 , the MSRs had a weighted-average life of 5.3 years and 6.4 years , respectively. See Note 11, '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 2016 2015 (In millions) Proceeds from new loan sales or securitizations $ 4,647 $ 7,267 Servicing fees from capitalized portfolio (1) 204 228 Purchases of previously sold loans (2) (232 ) (124 ) Servicing advances (3) (1,217 ) (1,576 ) Repayment of servicing advances (3) 1,241 1,527 ____________________ (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, 2016 , pre-tax gains of $77 million and $185 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, 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 .

Derivatives

Derivatives	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	4. 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 $ 1,591 $ 1,048 Forward delivery commitments 2,987 2,468 Option contracts 70 125 MSR-related agreements 4,867 3,945 The following tables present the balances of outstanding derivative instruments on a gross basis and the application of counterparty and collateral netting: September 30, 2016 Gross Assets Offsetting Payables Cash Collateral Paid Net Amount (In millions) ASSETS Subject to master netting arrangements: Forward delivery commitments $ 2 $ (2 ) $ 1 $ 1 MSR-related agreements 44 (41 ) 19 22 Derivative assets subject to netting 46 (43 ) 20 23 Not subject to master netting arrangements: Interest rate lock commitments 47 — — 47 Total derivative assets $ 93 $ (43 ) $ 20 $ 70 Gross Liabilities Offsetting Receivables Cash Collateral Received Net Amount LIABILITIES Subject to master netting arrangements: Forward delivery commitments $ 7 $ (7 ) $ 1 $ 1 MSR-related agreements 1 (36 ) 39 4 Total derivative liabilities $ 8 $ (43 ) $ 40 $ 5 December 31, 2015 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 27 — (23 ) 4 Derivative assets subject to netting 29 (2 ) (23 ) 4 Not subject to master netting arrangements: Interest rate lock commitments 21 — — 21 Forward delivery commitments 1 — — 1 Derivative assets not subject to netting 22 — — 22 Total derivative assets $ 51 $ (2 ) $ (23 ) $ 26 Gross Liabilities Offsetting Cash Collateral Net Amount LIABILITIES Subject to master netting arrangements: Forward delivery commitments $ 2 $ (2 ) $ 2 $ 2 Total derivative liabilities $ 2 $ (2 ) $ 2 $ 2 The following table summarizes the gains (losses) recorded in the Condensed Consolidated Statements of Operations for derivative instruments: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Gain on loans held for sale, net: Interest rate lock commitments $ 100 $ 81 $ 278 $ 216 Forward delivery commitments (6 ) (25 ) (41 ) (14 ) Option contracts — — (1 ) (1 ) Net derivative (loss) gain related to mortgage servicing rights: MSR-related agreements (4 ) 50 139 54

Other Assets

Other Assets	9 Months Ended
	Sep. 30, 2016
Other Assets [Abstract]
Other Assets	5. Other Assets Other assets consisted of: September 30, December 31, (In millions) Derivatives $ 70 $ 26 Repurchase eligible loans (1) 34 104 Equity method investments 32 32 Mortgage loans in foreclosure, net 21 24 Real estate owned, net 15 21 Income taxes receivable — 23 Other 15 17 Total $ 187 $ 247 ______________ (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, 2016
Other Liabilities Disclosure [Abstract]
Other Liabilities	6. Other Liabilities Other liabilities consisted of: September 30, December 31, (In millions) Legal and regulatory matters (Note 10) $ 121 $ 105 Pension and other post-employment benefits 10 11 Income tax contingencies 10 9 Derivatives 5 2 Other 8 10 Total $ 154 $ 137

Debt and Borrowing Arrangements

Debt and Borrowing Arrangements	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Debt and Borrowing Arrangements	7. Debt and Borrowing Arrangements The following table summarizes the components of Debt: September 30, 2016 December 31, Balance Interest (1) Available Capacity (2) Balance (In millions) Committed warehouse facilities $ 628 2.7 % $ 622 $ 632 Uncommitted warehouse facilities — — % 2,800 — Servicing advance facility 97 2.5 % 58 111 Term notes due in 2019 (3) 272 7.375 % n/a 271 Term notes due in 2021 (3) 335 6.375 % n/a 334 Unsecured debt 607 605 Total $ 1,332 $ 1,348 ______________ (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) Deferred issuance costs were reclassified from the prior year presentation in Other assets to a reduction in Unsecured debt. Assets held as collateral that are not available to pay the Company’s general obligations as of September 30, 2016 consisted of: Warehouse Facilities Servicing Advance Facility (In millions) Restricted cash $ 7 $ 15 Servicing advances — 153 Mortgage loans held for sale (unpaid principal balance) 657 — Total $ 664 $ 168 The following table provides the contractual debt maturities as of September 30, 2016 : Warehouse Facilities Servicing Advance Facility (1) Unsecured Debt Total (In millions) Within one year $ 628 $ 97 $ — $ 725 Between one and two years — — — — Between two and three years — — 275 275 Between three and four years — — — — Between four and five years — — 340 340 Thereafter — — — — $ 628 $ 97 $ 615 $ 1,340 _____________ (1) Maturities of the servicing advance facility represent estimated payments based on the expected cash inflows of the receivables. See Note 11, 'Fair Value Measurements' for the measurement of the fair value of Debt. Mortgage Warehouse Facilities On March 29, 2016, the Company entered into a new committed mortgage repurchase facility of $100 million and an uncommitted mortgage repurchase facility of $100 million with Barclays Bank PLC. The expiration date of the committed facility is March 28, 2017. On March 31, 2016, the committed mortgage repurchase facilities with Wells Fargo Bank were extended to April 2, 2017. On June 22, 2016, the facilities were returned to a $450 million capacity, after having been downsized in the March amendment. On June 13, 2016, the committed mortgage repurchase facilities with Fannie Mae were reduced by $200 million to $300 million at the Company's request. The total combined committed and uncommitted mortgage repurchase facilities with Fannie Mae remains unchanged at $3 billion . On June 17, 2016, the $250 million committed and $325 million uncommitted mortgage repurchase facilities with Credit Suisse expired and were not renewed. Servicing Advance Facility On June 15, 2016, PHH Service Advance Receivables Trust 2013-1, an indirect, wholly-owned subsidiary of the Company, extended the revolving period of the note purchase agreement with Wells Fargo Bank for the Series 2015-1 variable funding notes with an aggregate maximum principal amount of $155 million , by one year through June 15, 2017 and also extended the final maturity of the notes by one year to June 15, 2018. The notes bear interest, payable monthly, based on LIBOR plus an agreed-upon margin. Debt Covenants During 2016, profitability conditions precedent to borrowing in certain of the Company's mortgage repurchase facility agreements have been modified to exclude legal and regulatory provisions, while liquidity covenants have been enhanced to require that the Company maintain $150 million of cash and cash equivalents in excess of its liability for legal and regulatory matters. In addition, the mortgage repurchase facilities were amended to reduce the minimum tangible net worth covenants to $750 million from $1 billion and to introduce a covenant requiring the Company to maintain a ratio of unsecured indebtedness to tangible net worth of not more than 1.25 to 1.00. There were no other significant amendments to the terms of the debt covenants during the nine months ended September 30, 2016 . As of September 30, 2016 , the Company was in compliance with all financial covenants related to its debt arrangements.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes For the three and nine months ended September 30, 2016 , interim income tax benefits were recorded using the discrete effective tax rate method. Management believes the use of the discrete method for this period is more appropriate than applying the full-year effective tax rate method due to the actual results for the nine months ended September 30, 2016 compared to the expected results for the full year and the sensitivity of the effective tax rate to small changes in forecasted annual pre-tax income or loss. Under the discrete method, the Company determines the tax provision based upon actual results as if the interim period were a full year period. The resulting effective tax rates for the three and nine months ended September 30, 2016 were (27.5)% and (39.1)% , respectively. The difference between the Company’s effective tax rate and the statutory 35% rate was primarily due to: (i) state and local income taxes determined by the mix of income or loss from the operations by entity and state income tax jurisdiction; (ii) a decrease in the valuation allowance driven by the utilization of state tax losses; (iii) an increase in nondeductible expenses related to legal and regulatory matters; and (iv) tax benefits related to income attributable to noncontrolling interests for which no taxes are provided. For the three and nine months ended September 30, 2015 , interim income tax benefits were recorded by applying a projected full-year effective income tax rate to the quarterly Loss before income taxes for results that are deemed to be reliably estimable. Certain results dependent on fair value adjustments are considered not to be reliably estimable, and therefore, discrete year-to-date income tax provisions are recorded on those results. The resulting effective tax rates for the three and nine months ended September 30, 2015 were (46.2)% and (38.8)% , respectively. The difference between the Company’s effective tax rate and the statutory 35% rate was primarily due to: (i) state and local income taxes determined by the mix of income or loss from the operations by entity and state income tax jurisdiction; (ii) an increase in nondeductible expenses related to legal and regulatory matters, premiums paid to exchange the Convertible notes due in 2017 and certain amounts of officer's compensation; (iii) an increase in the valuation allowance driven by state tax losses generated and an increase in the non net operating loss deferred tax assets; (iv) tax benefits related to income attributable to noncontrolling interests for which no taxes are provided; and (v) adjustments to deferred tax items related to the sale of the Fleet business.

Credit Risk

Credit Risk	9 Months Ended
	Sep. 30, 2016
Credit Risk
Credit Risk	9. 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 and if the loans were originated in accordance with applicable underwriting standards, the Company may not have exposure to future risk of loss; however, in its capacity as a loan originator and servicer, the Company has exposure 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 $ 89,598 $ 99,869 Subserviced 138,285 126,390 Total $ 227,883 $ 226,259 Conventional loans $ 200,592 $ 197,971 Government loans 23,415 24,087 Home equity lines of credit 3,876 4,201 Total $ 227,883 $ 226,259 Weighted-average interest rate 3.8 % 3.8 % September 30, 2016 December 31, 2015 Number of Loans Unpaid Balance Number of Loans Unpaid Balance Portfolio Delinquency (1) 30 days 2.13 % 1.47 % 2.22 % 1.55 % 60 days 0.42 0.28 0.44 0.30 90 or more days 0.67 0.49 0.82 0.62 Total 3.22 % 2.24 % 3.48 % 2.47 % Foreclosure/real estate owned (2) 1.62 % 1.35 % 1.74 % 1.51 % ______________ (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, 2016 and December 31, 2015 , the total servicing portfolio included 13,710 and 15,487 of loans in foreclosure with an unpaid principal balance of $2.7 billion and $3.0 billion , respectively. Repurchase and Foreclosure-Related Reserves 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 2016 2015 (In millions) Balance, beginning of period $ 89 $ 93 Realized losses (17 ) (15 ) Increase in reserves due to: Changes in assumptions 10 5 New loan sales 5 10 Balance, end of period $ 87 $ 93 Repurchase and foreclosure-related reserves consist of the following: Loan Repurchases and Indemnifications Liabilities for probable losses related to repurchase and indemnification obligations of $65 million and $ 62 million as of September 30, 2016 and December 31, 2015 , respectively, are presented in the Condensed Consolidated Balance Sheets . The liability for loan repurchases and indemnifications represents management’s estimate of probable losses based on the best information available and requires the application of a significant level of judgment and the use of a number of assumptions. 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, 2016 , the estimated amount of reasonably possible losses in excess of the recorded liability was $35 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 liability from loan repurchases and indemnification requests does not reflect losses from litigation or governmental and regulatory examinations, investigations or inquiries. The maximum liability for future repurchase and indemnification requests, or the ranges of reasonably possible losses, cannot be estimated for the entire exposure for reasons including, but not limited to, the following: • the Company does not service all of the loans for which it has provided representations and warranties; • uncertainty related to loss exposure to loans from origination years where the Agencies have substantially completed or resolved their file reviews; and • uncertainty related to losses associated with loans with defects that were excluded from the resolution agreement with Fannie Mae (which excludes loans with certain title defects or violations of law that were originated and delivered prior to July 1, 2012). As of September 30, 2016 , $172 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; 12% of which were at least 90 days delinquent (calculated based upon the unpaid principal balance of the loans). 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 $ 30 $ 34 Allowance for probable foreclosure losses (9 ) (10 ) Mortgage loans in foreclosure, net $ 21 $ 24 Real estate owned and related advances $ 28 $ 38 Adjustment to value for real estate owned (13 ) (17 ) Real estate owned, net $ 15 $ 21

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	10. Commitments and Contingencies The Company and its subsidiaries are routinely, and currently, defendants in various legal proceedings that arise in the ordinary course of business, including class actions and other private and civil litigation. These proceedings are generally based on alleged violations of consumer protection laws (including the Real Estate Settlement Procedures Act ("RESPA")), employment laws and contractual obligations. Similar to other mortgage loan originators and servicers, the Company and its subsidiaries are also routinely, and currently, subject to government and regulatory examinations, investigations and inquiries or other requests for information. The resolution of these various legal and regulatory 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. In particular, legal proceedings brought under RESPA and other federal or state consumer protection laws that are ongoing, or may arise from time to time, may include the award of treble and other damages substantially in excess of actual losses, attorneys' fees, costs and disbursements, and other consumer and injunctive relief. These proceedings and matters are at varying procedural stages and the Company may engage in settlement discussions on certain matters in order to avoid the additional costs of engaging in litigation. The outcome of legal and regulatory matters is difficult to predict or estimate and the ultimate time to resolve these matters may be protracted. In addition, the outcome of any legal proceeding or governmental and regulatory matter may affect the outcome of other pending legal proceedings or governmental and regulatory matters. A liability is established for legal and regulatory contingencies 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, legal proceedings and other governmental and regulatory matters, 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, 2016 , the Company’s recorded liability associated with legal and regulatory contingencies was $121 million and is 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 liability may be up to $130 million in aggregate as of September 30, 2016 . There can be no assurance that the ultimate resolution of these matters will not result in losses in excess of the Company’s recorded liability, or in excess of the 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. 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 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 June 2015, the Director of the CFPB issued a final order requiring the Company to pay $109 million , based upon the gross reinsurance premiums the Company received on or after July 21, 2008. Subsequently, the Company filed an appeal to the United States Court of Appeals for the District of Columbia Circuit (the “Court of Appeals”). In October 2016, the Court of Appeals issued its decision, vacating the decision of the Director of the CFPB, and finding in favor of the Company’s arguments, among others, around the correct interpretations of Section 8 of RESPA, the applicability of prior HUD interpretations around captive re-insurance and the applicability of statute of limitations to administrative enforcement proceedings at the CFPB. The Court of Appeals remanded the case to the CFPB to determine the Company's compliance with provisions of RESPA specific to whether any mortgage insurers paid more than reasonable market value to the Company for reinsurance. The Company continues to believe that it has complied with RESPA and other laws applicable to its former mortgage reinsurance activities. Given the nature of this matter and the current status, the Company cannot estimate the amount of loss, or a range of possible losses, if any, in connection with this matter. 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 consumer protection and other 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 to a foreclosure attorney 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. The Company continues to engage in substantive discussions with the MMC regarding the proposal. The Company believes it has meritorious explanations and defenses to the findings. In the second quarter of 2016, the New York Department of Financial Services (the "NYDFS") proposed terms for a consent order to close out pending examination report findings, including New York findings stemming from the MMC examination. The Company has reached an agreement in principle with the NYDFS on the terms of the consent order; however, the final consent order has not been executed by the NYDFS. As of September 30, 2016 , the Company included an estimate of probable losses in connection with the MMC and NYDFS matters in the recorded liability. 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”) during the period between January 1, 2006 and December 31, 2011. As part of the investigation, HUD has also requested documents related to a small sample of loans originated during this period. This investigation could lead to a demand or claim under the False Claims Act, which allows for civil penalties and treble damages substantially in excess of actual losses. Several large mortgage originators that participate in FHA lending programs have been subject to similar investigations, which have resulted in settlement agreements that included the payment of substantial fines and penalties. 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. The Company is continuing its discussions with HUD about the ongoing investigation. As of September 30, 2016 , the Company included an estimate of probable losses in connection with this matter in the recorded liability. 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, in November 2016, the Company reached agreement on all material terms to settle outstanding litigation relating to this matter. The settlement is subject to definitive documentation and court approval. The Company’s recorded estimate of probable losses as of September 30, 2016 for this matter was not materially different than the losses we expect to incur in connection with the resolution. 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: (i) foreclosure expenses that we incurred in connection with the foreclosure of loans insured or guaranteed by FHA, Fannie Mae or Freddie Mac and (ii) the origination and underwriting of loans sold pursuant to programs sponsored by Fannie Mae, Freddie Mac or Ginnie Mae. In July 2016, the U.S. Attorney’s Office for the Eastern District of New York requested production of additional documents responsive to the subpoenas. There can be no assurance that claims or litigation will not arise from these inquiries, or that fines and penalties, as well as other consumer or injunctive relief, 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 regulator 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.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	11. 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, 2016 . 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, 2016 or December 31, 2015 . Recurring Fair Value Measurements The following summarizes the fair value hierarchy for instruments measured at fair value on a recurring basis: September 30, 2016 Level One Level Two Level Three Cash Collateral and Netting Total (In millions) ASSETS Mortgage loans held for sale $ — $ 716 $ 45 $ — $ 761 Mortgage servicing rights — — 645 — 645 Other assets—Derivative assets: Interest rate lock commitments — — 47 — 47 Forward delivery commitments — 2 — (1 ) 1 MSR-related agreements — 44 — (22 ) 22 LIABILITIES Other liabilities—Derivative liabilities: Forward delivery commitments $ — $ 7 $ — $ (6 ) $ 1 MSR-related agreements — 1 — 3 4 December 31, 2015 Level One Level Two Level Three Cash Collateral and Netting Total (In millions) ASSETS Mortgage loans held for sale $ — $ 704 $ 39 $ — $ 743 Mortgage servicing rights — — 880 — 880 Other assets—Derivative assets: Interest rate lock commitments — — 21 — 21 Forward delivery commitments — 3 — (2 ) 1 MSR-related agreements — 27 — (23 ) 4 LIABILITIES Other liabilities—Derivative liabilities: Forward delivery commitments $ — $ 2 $ — $ — $ 2 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 has 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, 2016 December 31, 2015 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 $ 761 $ 8 $ 743 $ 9 Aggregate unpaid principal balance 753 11 738 11 Difference $ 8 $ (3 ) $ 5 $ (2 ) The following table summarizes the components of mortgage loans held for sale: September 30, December 31, (In millions) First mortgages: Conforming $ 611 $ 616 Non-conforming 104 88 Total first mortgages 715 704 Second lien 3 4 Scratch and Dent 42 35 Other 1 — Total $ 761 $ 743 Mortgage Servicing Rights. The following tables summarize certain information regarding the initial and ending capitalization rate of MSRs: Nine Months Ended 2016 2015 Initial capitalization rate of additions to MSRs 1.00 % 1.13 % September 30, December 31, Capitalization servicing rate 0.73 % 0.89 % Capitalization servicing multiple 2.6 3.1 Weighted-average servicing fee (in basis points) 28 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) 12.6 % 9.1 % Option adjusted spread, in basis points (OAS) 987 977 Weighted-average delinquency rate 5.5 % 5.3 % The following table summarizes the estimated change in the fair value of MSRs from adverse changes in the significant assumptions: September 30, 2016 Weighted- Average Prepayment Speed Option Adjusted Spread Weighted- Average Delinquency Rate (In millions) Impact on fair value of 10% adverse change $ (32 ) $ (26 ) $ (18 ) Impact on fair value of 20% adverse change (62 ) (50 ) (35 ) 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, 2016 and December 31, 2015 was 76% 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 $ 42 $ 679 $ 39 $ 48 $ 1,020 $ 22 Purchases, Issuances, Sales and Settlements: Purchases 3 — — 7 — — Issuances 2 15 — 2 32 — Sales (6 ) (3 ) — (15 ) (10 ) — Settlements (4 ) — (92 ) (3 ) — (74 ) (5 ) 12 (92 ) (9 ) 22 (74 ) Realized and unrealized gains (losses) included in: Gain on loans held for sale, net — — 100 — — 81 Change in fair value of MSRs — (46 ) — — (115 ) — Interest income — — — 1 — — — (46 ) 100 1 (115 ) 81 Transfers into Level Three 13 — — 8 — — Transfers out of Level Three (5 ) — — (9 ) — — Balance, end of period $ 45 $ 645 $ 47 $ 39 $ 927 $ 29 Nine Months Ended Nine Months Ended MLHS MSRs IRLCs, net MLHS MSRs IRLCs, net (In millions) Balance, beginning of period $ 39 $ 880 $ 21 $ 42 $ 1,005 $ 22 Purchases, Issuances, Sales and Settlements: Purchases 11 — — 24 — — Issuances 5 45 — 4 80 — Sales (20 ) (8 ) — (23 ) (35 ) — Settlements (9 ) — (252 ) (8 ) — (209 ) (13 ) 37 (252 ) (3 ) 45 (209 ) Realized and unrealized gains (losses) included in: Gain on loans held for sale, net — — 278 1 — 216 Change in fair value of MSRs — (272 ) — — (123 ) — Interest income 2 — — 4 — — 2 (272 ) 278 5 (123 ) 216 Transfers into Level Three 33 — — 23 — — Transfers out of Level Three (16 ) — — (28 ) — — Balance, end of period $ 45 $ 645 $ 47 $ 39 $ 927 $ 29 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. 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 2016 2015 2016 2015 (In millions) Gain on loans held for sale, net $ 42 $ 27 $ 43 $ 26 Change in fair value of mortgage servicing rights (9 ) (72 ) (174 ) 9 Fair Value of Other Financial Instruments As of September 30, 2016 and December 31, 2015 , 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 both September 30, 2016 and December 31, 2015 , the total fair value of Debt was $1.3 billion , and is measured using Level Two inputs. As of September 30, 2016 , the fair value of Level Two Debt was estimated using the following valuation techniques: (i) $609 million 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) $725 million was measured using observable spreads and terms for recent pricing of similar instruments.

Variable Interest Entities

Variable Interest Entities	9 Months Ended
	Sep. 30, 2016
Variable Interest Entities
Variable Interest Entities	12. Variable Interest Entities Assets and liabilities of significant variable interest entities are included in the Condensed Consolidated Balance Sheets as follows: September 30, 2016 December 31, 2015 PHH Home Loans Servicing Advance Receivables Trust PHH Home Loans Servicing Advance Receivables Trust (In millions) ASSETS Cash $ 61 $ — $ 80 $ — Restricted cash 5 15 5 13 Mortgage loans held for sale 436 — 389 — Accounts receivable, net 26 — 5 — Servicing advances, net — 153 — 157 Property and equipment, net 1 — 1 — Other assets 18 1 11 1 Total assets $ 547 $ 169 $ 491 $ 171 Assets held as collateral $ 411 $ 168 $ 361 $ 170 LIABILITIES Accounts payable and accrued expenses $ 15 $ — $ 14 $ — Debt 388 98 345 111 Other liabilities 6 — 6 — Total liabilities (1) $ 409 $ 98 $ 365 $ 111 ——————— (1) Excludes intercompany payables.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Segment Information	13. 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 the Company 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 operations are located in the U.S. The heading Other includes expenses that are not allocated back to the two reportable segments. 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 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’s noncontrolling interest in the profit or loss of PHH Home Loans. Segment results were as follows: Total Assets September 30, December 31, 2015 (In millions) Mortgage Production segment $ 1,062 $ 1,036 Mortgage Servicing segment 1,476 1,802 Other 908 804 Total $ 3,446 $ 3,642 Net Revenues Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Mortgage Production segment $ 168 $ 149 $ 443 $ 460 Mortgage Servicing segment 29 20 107 201 Other — — — 6 Total $ 197 $ 169 $ 550 $ 667 Segment Profit (Loss) (2) Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Mortgage Production segment $ 22 $ (10 ) $ 9 $ (26 ) Mortgage Servicing segment (52 ) (77 ) (106 ) (66 ) Other (1) (5 ) (3 ) (10 ) (49 ) Total $ (35 ) $ (90 ) $ (107 ) $ (141 ) ——————— (1) For the nine months ended September 30, 2015 , the net results for Other include a $30 million loss on the exchange of the Convertible notes due in 2017. (2) The following is a reconciliation of Income or loss before income taxes to Segment profit or loss: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Loss before income taxes $ (29 ) $ (87 ) $ (98 ) $ (130 ) Less: net income attributable to noncontrolling interest 6 3 9 11 Segment loss $ (35 ) $ (90 ) $ (107 ) $ (141 )

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	14. Subsequent Events GNMA MSR Portfolio Sale On November 8, 2016, the Company entered into an agreement to sell substantially all of our Ginnie Mae ("GNMA") Mortgage servicing rights and related advances to Lakeview Loan Servicing. As of September 30, 2016, the unpaid principal balance of the GNMA MSR portfolio totaled $14.8 billion , and the fair value was $104 million , representing a 70 bps capitalized servicing rate. Servicing advance receivables that will be transferred under the sale agreement were $16 million as of September 30, 2016. This MSR sale agreement is subject to GNMA approval as well as approvals of certain loan origination sources. Approximately 30% of the GNMA MSR subject to this sale agreement requires the consent of an origination source prior to sale. Based on the portfolio composition as of September 30, 2016, current market conditions and assuming the receipt of all required approvals, the expected proceeds from this sale are $122 million , excluding transaction and other related costs. The final proceeds received from this transaction are dependent on the portfolio composition and market conditions at each respective sale date and the aggregate amount of origination source consents received. Upon sale, the subservicing responsibilities with respect to the related mortgage loans will transfer to a successor subservicer appointed by the purchaser. Exit of Private Label Services Channel On November 8, 2016, the Company announced its plan to exit its private label solutions business channel. This business channel involves providing end-to-end origination services to financial institution clients, and represented 78% of the Company’s total mortgage production volume (based on dollars) for the nine months ended September 30, 2016. The Company expects it will be in a position to substantially exit this channel by the first quarter of 2018, subject to transition support requirements, and estimates that it will incur pre-tax costs of $75 million to $105 million in connection with the exit, which includes severance and retention programs, facility-related exit costs, and other expected payments. The Company did not recognize any amounts in the September 30, 2016 financial statements related to the plans to exit this business, as exit decisions were not completed until the fourth quarter of 2016.

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
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.
Changes in Accounting Pronouncements and Recently Issued Accounting Pronouncements	Changes in Accounting Pronouncements Share-Based Payments. In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition, rather than being reflected in estimating the grant-date fair value of the award. The Company adopted this guidance prospectively as of January 1, 2016, and there was no impact to the Company's financial statements. 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. This guidance was adopted retrospectively as of January 1, 2016, and the Company updated its consolidation analyses for relevant entities. The adoption of this update did not change any consolidation conclusions, and there was no impact to the Company's financial statements or disclosures. 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 that 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 Company adopted this guidance retrospectively as of January 1, 2016 which resulted in a $10 million decrease to both Other assets and Debt in the Condensed Consolidated Balance Sheets as of December 31, 2015 . The Company elected not to reclass debt issuance costs related to line-of-credit and mortgage warehouse arrangements, which continue to be presented in Other assets for all periods. The adoption of this standard did 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 Company adopted this guidance prospectively to all arrangements entered into or materially modified after January 1, 2016. The adoption of this standard did not have an impact to the Company's financial statements. Recently Issued Accounting Pronouncements Financial Instruments. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” This update revises an entity's accounting related to the classification and measurement of investments in equity securities (except those accounted for under the equity method of accounting or those that result in consolidation of the investee), changes the presentation of certain fair value changes relating to instrument specific credit risk for financial liabilities and amends certain disclosure requirements associated with the fair value of financial instruments. This update is effective for the first interim and annual periods beginning after December 15, 2017 with early adoption permitted for certain provisions of the update. The Company is currently evaluating the impact of adopting this new standard. In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This standard is applicable to financial instruments not accounted for at fair value, including but not limited to, trade receivables and off-balance sheet credit exposures. This update is effective for the first interim and annual periods beginning after December 15, 2019, with early adoption permitted for fiscal years beginning after December 15, 2018. At adoption, this update will be applied using a modified retrospective approach. The Company is currently evaluating the impact of adopting this new standard. Leases. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This update revises an entity’s accounting for operating leases by a lessee, among other changes, and requires a lessee to recognize a liability to make lease payments and an asset representing its right to use the underlying asset for the lease term in the statement of financial position. The distinction between finance and operating leases has not changed and the update does not significantly change the effect of finance and operating leases on the statement of comprehensive income and the statement of cash flows. Additionally, this update requires both qualitative and specific quantitative disclosures. This update is effective for the first interim and annual periods beginning after December 15, 2018, with early adoption permitted. At adoption, this update will be applied using a modified retrospective approach. The Company is currently evaluating the impact of adopting this new standard. Derivatives and Hedging. In March 2016, the FASB issued ASU 2016-06, “Contingent Put and Call Options in Debt Instruments.” This update clarifies that in assessing whether an embedded contingent put or call option is clearly and closely related to the debt host, an entity is required to perform only a specific four-step decision sequence. An entity is no longer required to assess whether the contingency for exercising the option is indexed to interest rate or credit risk. This update is effective for the first interim and annual periods beginning after December 15, 2016, with early adoption permitted. At adoption, this update will be applied using a modified retrospective approach. The Company is currently evaluating the impact of adopting this new standard. Revenue Recognition. The FASB has issued several amendments to the new revenue standard ASU 2014-09 (as amended by ASU 2015-14), including: • ASU 2016-08, “Principal Versus Agent Considerations (Reporting Revenue Gross versus Net).” The amendments to this update were issued in March 2016 and are intended to improve the implementation guidance on principal versus agent considerations in ASU 2014-09 by clarifying how an entity should identify the unit of accounting (i.e. the specified good or service) and how an entity should apply the control principle to certain types of arrangements. • ASU 2016-10, “Identifying Performance Obligations and Licensing.” The amendments to this update were issued in April 2016 and are intended to improve the implementation guidance on identifying performance obligations by reducing the cost and complexity of identifying promised goods or services and improving the guidance for determining whether promises are separately identifiable. The amendments also provide implementation guidance on accounting for licenses of intellectual property. • ASU 2016-12, "Narrow-Scope Improvements and Practical Expedients." The amendments to this update were issued in May 2016 and clarify certain core recognition principles and provide practical expedients available at transition. The improvements address collectability, sales tax presentation, noncash consideration, contract modifications and completed contracts at transition. Consistent with ASU 2014-09 (as amended by ASU 2015-14), these updates are to be applied retrospectively to all prior periods presented or through a cumulative adjustment in the year of adoption, and are effective 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 does not expect to early adopt the revenue standard amendments and is currently evaluating the impact of adoption. Share-Based Payments. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting." This update is intended to simplify several aspects of the accounting for share-based payment transactions, including accounting for income taxes, the classification of awards as either equity or liabilities and the classification of excess tax benefits and payments for tax withholdings on the statement of cash flows. This update is effective for the first interim and annual periods beginning after December 15, 2016, with early adoption permitted. At adoption, this update will be applied either prospectively, retrospectively or by using a modified retrospective approach, depending on the area of change. The Company is currently evaluating the impact of adopting this new standard. Statement of Cash Flows. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments." This update addresses eight specific cash flow issues and is intended to reduce diversity in practice in how entities present and classify certain cash receipts and cash payments in the statement of cash flows. This update is effective for the first interim and annual periods beginning after December 15, 2017, with early adoption permitted. At adoption, this update will be applied retrospectively. For issues that are impracticable to apply retrospectively, the amendments may be applied prospectively from the earliest date practicable. The Company is currently evaluating the impact of adopting this new standard. Consolidation. In October 2016, the FASB issued ASU 2016-17, "Interests Held through Related Parties That Are under Common Control." This update requires an entity to include indirect interest held through related parties that are under common control on a proportionate basis when evaluating if a reporting entity is the primary beneficiary of a variable interest entity. This update is effective for the first interim and annual periods beginning after December 15, 2016, with early adoption permitted. At adoption, this update will be applied retrospectively. The Company is currently evaluating the impact of adopting this new standard.
Commitments and Contingencies	A liability is established for legal and regulatory contingencies 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, legal proceedings and other governmental and regulatory matters, 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.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
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 2016 2015 2016 2015 (In millions, except share and per share data) Net loss attributable to PHH Corporation $ (27 ) $ (50 ) $ (69 ) $ (91 ) Weighted-average common shares outstanding — basic & diluted 53,578,044 59,830,544 53,616,403 54,078,072 Basic and Diluted loss per share attributable to PHH Corporation $ (0.50 ) $ (0.84 ) $ (1.28 ) $ (1.68 )
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 2016 2015 2016 2015 Outstanding stock-based compensation awards (1) 1,971,055 1,386,775 1,971,055 1,386,775 Assumed conversion of debt securities — 7,001 — 5,804,349 ——————— (1) For the three and nine months ended September 30, 2016 , excludes 383,400 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, 2016
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 2016 2015 (In millions) Balance, beginning of period $ 98,990 $ 112,686 Additions 4,476 7,086 Payoffs and curtailments (14,102 ) (14,854 ) Sales (742 ) (3,080 ) Balance, end of period $ 88,622 $ 101,838
Schedule of activity in capitalized MSRs	The activity in capitalized MSRs consisted of: Nine Months Ended 2016 2015 (In millions) Balance, beginning of period $ 880 $ 1,005 Additions 45 80 Sales (8 ) (35 ) Changes in fair value due to: Realization of expected cash flows (98 ) (132 ) Changes in market inputs or assumptions used in the valuation model (174 ) 9 Balance, end of period $ 645 $ 927
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 2016 2015 2016 2015 (In millions) Servicing fees from capitalized portfolio $ 67 $ 72 $ 204 $ 228 Late fees 3 4 11 11 Other ancillary servicing revenue 6 4 14 19
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 2016 2015 (In millions) Proceeds from new loan sales or securitizations $ 4,647 $ 7,267 Servicing fees from capitalized portfolio (1) 204 228 Purchases of previously sold loans (2) (232 ) (124 ) Servicing advances (3) (1,217 ) (1,576 ) Repayment of servicing advances (3) 1,241 1,527 ____________________ (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, 2016
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 $ 1,591 $ 1,048 Forward delivery commitments 2,987 2,468 Option contracts 70 125 MSR-related agreements 4,867 3,945
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, 2016 Gross Assets Offsetting Payables Cash Collateral Paid Net Amount (In millions) ASSETS Subject to master netting arrangements: Forward delivery commitments $ 2 $ (2 ) $ 1 $ 1 MSR-related agreements 44 (41 ) 19 22 Derivative assets subject to netting 46 (43 ) 20 23 Not subject to master netting arrangements: Interest rate lock commitments 47 — — 47 Total derivative assets $ 93 $ (43 ) $ 20 $ 70 Gross Liabilities Offsetting Receivables Cash Collateral Received Net Amount LIABILITIES Subject to master netting arrangements: Forward delivery commitments $ 7 $ (7 ) $ 1 $ 1 MSR-related agreements 1 (36 ) 39 4 Total derivative liabilities $ 8 $ (43 ) $ 40 $ 5 December 31, 2015 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 27 — (23 ) 4 Derivative assets subject to netting 29 (2 ) (23 ) 4 Not subject to master netting arrangements: Interest rate lock commitments 21 — — 21 Forward delivery commitments 1 — — 1 Derivative assets not subject to netting 22 — — 22 Total derivative assets $ 51 $ (2 ) $ (23 ) $ 26 Gross Liabilities Offsetting Cash Collateral Net Amount LIABILITIES Subject to master netting arrangements: Forward delivery commitments $ 2 $ (2 ) $ 2 $ 2 Total derivative liabilities $ 2 $ (2 ) $ 2 $ 2
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 2016 2015 2016 2015 (In millions) Gain on loans held for sale, net: Interest rate lock commitments $ 100 $ 81 $ 278 $ 216 Forward delivery commitments (6 ) (25 ) (41 ) (14 ) Option contracts — — (1 ) (1 ) Net derivative (loss) gain related to mortgage servicing rights: MSR-related agreements (4 ) 50 139 54

Other Assets (Tables)

Other Assets (Tables)	9 Months Ended
	Sep. 30, 2016
Other Assets [Abstract]
Schedule of other assets	Other assets consisted of: September 30, December 31, (In millions) Derivatives $ 70 $ 26 Repurchase eligible loans (1) 34 104 Equity method investments 32 32 Mortgage loans in foreclosure, net 21 24 Real estate owned, net 15 21 Income taxes receivable — 23 Other 15 17 Total $ 187 $ 247 ______________ (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, 2016
Other Liabilities Disclosure [Abstract]
Schedule of other liabilities	Other liabilities consisted of: September 30, December 31, (In millions) Legal and regulatory matters (Note 10) $ 121 $ 105 Pension and other post-employment benefits 10 11 Income tax contingencies 10 9 Derivatives 5 2 Other 8 10 Total $ 154 $ 137

Debt and Borrowing Arrangemen29

Debt and Borrowing Arrangements (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Summary of the components of Debt	The following table summarizes the components of Debt: September 30, 2016 December 31, Balance Interest (1) Available Capacity (2) Balance (In millions) Committed warehouse facilities $ 628 2.7 % $ 622 $ 632 Uncommitted warehouse facilities — — % 2,800 — Servicing advance facility 97 2.5 % 58 111 Term notes due in 2019 (3) 272 7.375 % n/a 271 Term notes due in 2021 (3) 335 6.375 % n/a 334 Unsecured debt 607 605 Total $ 1,332 $ 1,348 ______________ (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) Deferred issuance costs were reclassified from the prior year presentation in Other assets to a reduction in Unsecured debt.
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, 2016 consisted of: Warehouse Facilities Servicing Advance Facility (In millions) Restricted cash $ 7 $ 15 Servicing advances — 153 Mortgage loans held for sale (unpaid principal balance) 657 — Total $ 664 $ 168
Schedule of contractual debt maturities	The following table provides the contractual debt maturities as of September 30, 2016 : Warehouse Facilities Servicing Advance Facility (1) Unsecured Debt Total (In millions) Within one year $ 628 $ 97 $ — $ 725 Between one and two years — — — — Between two and three years — — 275 275 Between three and four years — — — — Between four and five years — — 340 340 Thereafter — — — — $ 628 $ 97 $ 615 $ 1,340 _____________ (1) Maturities of the servicing advance facility represent estimated payments based on the expected cash inflows of the receivables.

Credit Risk (Tables)

Credit Risk (Tables)	9 Months Ended
	Sep. 30, 2016
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 $ 89,598 $ 99,869 Subserviced 138,285 126,390 Total $ 227,883 $ 226,259 Conventional loans $ 200,592 $ 197,971 Government loans 23,415 24,087 Home equity lines of credit 3,876 4,201 Total $ 227,883 $ 226,259 Weighted-average interest rate 3.8 % 3.8 %
Schedule of portfolio delinquency	September 30, 2016 December 31, 2015 Number of Loans Unpaid Balance Number of Loans Unpaid Balance Portfolio Delinquency (1) 30 days 2.13 % 1.47 % 2.22 % 1.55 % 60 days 0.42 0.28 0.44 0.30 90 or more days 0.67 0.49 0.82 0.62 Total 3.22 % 2.24 % 3.48 % 2.47 % Foreclosure/real estate owned (2) 1.62 % 1.35 % 1.74 % 1.51 % ______________ (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, 2016 and December 31, 2015 , the total servicing portfolio included 13,710 and 15,487 of loans in foreclosure with an unpaid principal balance of $2.7 billion and $3.0 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 2016 2015 (In millions) Balance, beginning of period $ 89 $ 93 Realized losses (17 ) (15 ) Increase in reserves due to: Changes in assumptions 10 5 New loan sales 5 10 Balance, end of period $ 87 $ 93
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 $ 30 $ 34 Allowance for probable foreclosure losses (9 ) (10 ) Mortgage loans in foreclosure, net $ 21 $ 24 Real estate owned and related advances $ 28 $ 38 Adjustment to value for real estate owned (13 ) (17 ) Real estate owned, net $ 15 $ 21

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
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, 2016 Level One Level Two Level Three Cash Collateral and Netting Total (In millions) ASSETS Mortgage loans held for sale $ — $ 716 $ 45 $ — $ 761 Mortgage servicing rights — — 645 — 645 Other assets—Derivative assets: Interest rate lock commitments — — 47 — 47 Forward delivery commitments — 2 — (1 ) 1 MSR-related agreements — 44 — (22 ) 22 LIABILITIES Other liabilities—Derivative liabilities: Forward delivery commitments $ — $ 7 $ — $ (6 ) $ 1 MSR-related agreements — 1 — 3 4 December 31, 2015 Level One Level Two Level Three Cash Collateral and Netting Total (In millions) ASSETS Mortgage loans held for sale $ — $ 704 $ 39 $ — $ 743 Mortgage servicing rights — — 880 — 880 Other assets—Derivative assets: Interest rate lock commitments — — 21 — 21 Forward delivery commitments — 3 — (2 ) 1 MSR-related agreements — 27 — (23 ) 4 LIABILITIES Other liabilities—Derivative liabilities: Forward delivery commitments $ — $ 2 $ — $ — $ 2
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, 2016 December 31, 2015 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 $ 761 $ 8 $ 743 $ 9 Aggregate unpaid principal balance 753 11 738 11 Difference $ 8 $ (3 ) $ 5 $ (2 )
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 $ 611 $ 616 Non-conforming 104 88 Total first mortgages 715 704 Second lien 3 4 Scratch and Dent 42 35 Other 1 — Total $ 761 $ 743
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 2016 2015 Initial capitalization rate of additions to MSRs 1.00 % 1.13 % September 30, December 31, Capitalization servicing rate 0.73 % 0.89 % Capitalization servicing multiple 2.6 3.1 Weighted-average servicing fee (in basis points) 28 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) 12.6 % 9.1 % Option adjusted spread, in basis points (OAS) 987 977 Weighted-average delinquency rate 5.5 % 5.3 %
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, 2016 Weighted- Average Prepayment Speed Option Adjusted Spread Weighted- Average Delinquency Rate (In millions) Impact on fair value of 10% adverse change $ (32 ) $ (26 ) $ (18 ) Impact on fair value of 20% adverse change (62 ) (50 ) (35 )
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 $ 42 $ 679 $ 39 $ 48 $ 1,020 $ 22 Purchases, Issuances, Sales and Settlements: Purchases 3 — — 7 — — Issuances 2 15 — 2 32 — Sales (6 ) (3 ) — (15 ) (10 ) — Settlements (4 ) — (92 ) (3 ) — (74 ) (5 ) 12 (92 ) (9 ) 22 (74 ) Realized and unrealized gains (losses) included in: Gain on loans held for sale, net — — 100 — — 81 Change in fair value of MSRs — (46 ) — — (115 ) — Interest income — — — 1 — — — (46 ) 100 1 (115 ) 81 Transfers into Level Three 13 — — 8 — — Transfers out of Level Three (5 ) — — (9 ) — — Balance, end of period $ 45 $ 645 $ 47 $ 39 $ 927 $ 29 Nine Months Ended Nine Months Ended MLHS MSRs IRLCs, net MLHS MSRs IRLCs, net (In millions) Balance, beginning of period $ 39 $ 880 $ 21 $ 42 $ 1,005 $ 22 Purchases, Issuances, Sales and Settlements: Purchases 11 — — 24 — — Issuances 5 45 — 4 80 — Sales (20 ) (8 ) — (23 ) (35 ) — Settlements (9 ) — (252 ) (8 ) — (209 ) (13 ) 37 (252 ) (3 ) 45 (209 ) Realized and unrealized gains (losses) included in: Gain on loans held for sale, net — — 278 1 — 216 Change in fair value of MSRs — (272 ) — — (123 ) — Interest income 2 — — 4 — — 2 (272 ) 278 5 (123 ) 216 Transfers into Level Three 33 — — 23 — — Transfers out of Level Three (16 ) — — (28 ) — — Balance, end of period $ 45 $ 645 $ 47 $ 39 $ 927 $ 29
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 2016 2015 2016 2015 (In millions) Gain on loans held for sale, net $ 42 $ 27 $ 43 $ 26 Change in fair value of mortgage servicing rights (9 ) (72 ) (174 ) 9

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	9 Months Ended
	Sep. 30, 2016
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, 2016 December 31, 2015 PHH Home Loans Servicing Advance Receivables Trust PHH Home Loans Servicing Advance Receivables Trust (In millions) ASSETS Cash $ 61 $ — $ 80 $ — Restricted cash 5 15 5 13 Mortgage loans held for sale 436 — 389 — Accounts receivable, net 26 — 5 — Servicing advances, net — 153 — 157 Property and equipment, net 1 — 1 — Other assets 18 1 11 1 Total assets $ 547 $ 169 $ 491 $ 171 Assets held as collateral $ 411 $ 168 $ 361 $ 170 LIABILITIES Accounts payable and accrued expenses $ 15 $ — $ 14 $ — Debt 388 98 345 111 Other liabilities 6 — 6 — Total liabilities (1) $ 409 $ 98 $ 365 $ 111 ——————— (1) Excludes intercompany payables.

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Schedule of segment results	Segment results were as follows: Total Assets September 30, December 31, 2015 (In millions) Mortgage Production segment $ 1,062 $ 1,036 Mortgage Servicing segment 1,476 1,802 Other 908 804 Total $ 3,446 $ 3,642 Net Revenues Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Mortgage Production segment $ 168 $ 149 $ 443 $ 460 Mortgage Servicing segment 29 20 107 201 Other — — — 6 Total $ 197 $ 169 $ 550 $ 667 Segment Profit (Loss) (2) Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Mortgage Production segment $ 22 $ (10 ) $ 9 $ (26 ) Mortgage Servicing segment (52 ) (77 ) (106 ) (66 ) Other (1) (5 ) (3 ) (10 ) (49 ) Total $ (35 ) $ (90 ) $ (107 ) $ (141 ) ——————— (1) For the nine months ended September 30, 2015 , the net results for Other include a $30 million loss on the exchange of the Convertible notes due in 2017. (2) The following is a reconciliation of Income or loss before income taxes to Segment profit or loss: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Loss before income taxes $ (29 ) $ (87 ) $ (98 ) $ (130 ) Less: net income attributable to noncontrolling interest 6 3 9 11 Segment loss $ (35 ) $ (90 ) $ (107 ) $ (141 )
Schedule of reconciliation of Income (loss) before income taxes to Segment profit (loss)	The following is a reconciliation of Income or loss before income taxes to Segment profit or loss: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In millions) Loss before income taxes $ (29 ) $ (87 ) $ (98 ) $ (130 ) Less: net income attributable to noncontrolling interest 6 3 9 11 Segment loss $ (35 ) $ (90 ) $ (107 ) $ (141 )

Summary of Significant Accoun34

Summary of Significant Accounting Policies (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016segment	Dec. 31, 2015USD ($)
Accounting Policies [Abstract]
Number of reportable segments | segment	2
Adjustments for New Accounting Pronouncement | Debt
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs		$ 10
Adjustments for New Accounting Pronouncement | Other Assets
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs		$ (10)

Earnings Per Share (Details)

Earnings Per Share (Details) - shares	1 Months Ended
	Jan. 31, 2016	Jun. 30, 2015	Mar. 31, 2015
Earnings Per Share [Abstract]
Number of shares issued from conversion of notes (in shares)		10,075,653
Open Market Share Repurchase Program
Share Repurchases [Line Items]
Repurchase of common stock (in shares)	1,508,772
Accelerated Stock Repurchase Programs
Share Repurchases [Line Items]
Repurchase of common stock (in shares)			1,574,252

Earnings Per Share (Details 2)

Earnings Per Share (Details 2) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net loss attributable to PHH Corporation	$ (27)	$ (50)	$ (69)	$ (91)
Weighted-average common shares outstanding — basic	53,578,044	59,830,544	53,616,403	54,078,072
Weighted-average common shares outstanding — diluted	53,578,044	59,830,544	53,616,403	54,078,072
Basic and Diluted loss per share attributable to PHH Corporation (in usd per share)	$ (0.50)	$ (0.84)	$ (1.28)	$ (1.68)

Earnings Per Share (Details 3)

Earnings Per Share (Details 3) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Contingently issuable shares
Contingently issuable shares for which the contingency has not been met	383,400		383,400
Outstanding stock-based compensation awards
Anti-dilutive securities
Anti-dilutive securities excluded from the computation of dilutive securities (in shares)	1,971,055	1,386,775	1,971,055	1,386,775
Assumed conversion of debt securities
Anti-dilutive securities
Anti-dilutive securities excluded from the computation of dilutive securities (in shares)	0	7,001	0	5,804,349

Transfers and Servicing of Mo38

Transfers and Servicing of Mortgage Loans (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016
Transfers and Servicing [Abstract]
Servicing portfolio	$ 226,259		$ 227,883
Activity in the loan servicing portfolio associated with capitalized servicing rights
Balance, beginning of period	226,259
Balance, end of period	227,883
Percentage of mortgage servicing rights restricted from sale without prior approval			27.00%
Capitalized servicing rights
Transfers and Servicing [Abstract]
Servicing portfolio	98,990	$ 112,686	$ 88,622
Activity in the loan servicing portfolio associated with capitalized servicing rights
Balance, beginning of period	98,990	112,686
Additions	4,476	7,086
Payoffs and curtailments	(14,102)	(14,854)
Sales	(742)	(3,080)
Balance, end of period	$ 88,622	$ 101,838
Commitment to sell Mortgage Servicing Rights			329
Commitment to sell Mortgage servicing rights, fair value			4
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			$ 109

Transfers and Servicing of Mo39

Transfers and Servicing of Mortgage Loans (Details 2) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Activity in capitalized MSRs
Balance, beginning of period			$ 880	$ 1,005	$ 1,005
Additions			45	80
Sales			(8)	(35)
Changes in fair value due to:
Realization of expected cash flows			(98)	(132)
Changes in market inputs or assumptions used in the valuation model			(174)	9
Balance, end of period	$ 645	$ 927	645	927	$ 880
Contractually specified servicing fees, late fees and other ancillary servicing revenue were recorded within Loan servicing income as follows:
Servicing fees from capitalized portfolio	67	72	204	228
Late fees	3	4	11	11
Other ancillary servicing revenue	6	4	$ 14	19
Weighted average life of MSRs			5 years 3 months 18 days		6 years 4 months 24 days
Cash flows relating to loan sales in which the Company has continuing involvement
Proceeds from new loan sales or securitizations			$ 4,647	7,267
Servicing fees from capitalized portfolio	67	72	204	228
Purchases of previously sold loans			(232)	(124)
Servicing advances			(1,217)	(1,576)
Repayment of servicing advances			1,241	1,527
Realized Gain Loss on Sale
Pre-tax gains related to sale or securitization of residential mortgage loans	$ 77	$ 82	$ 185	$ 231

Derivatives (Details)

Derivatives (Details) - Not designated as hedging instruments - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Interest rate lock commitments
Notional amount of derivatives
Notional	$ 1,591	$ 1,048
Forward delivery commitments
Notional amount of derivatives
Notional	2,987	2,468
Option contracts
Notional amount of derivatives
Notional	70	125
MSR-related agreements
Notional amount of derivatives
Notional	$ 4,867	$ 3,945

Derivatives (Details 2)

Derivatives (Details 2) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
ASSETS
Other assets-Derivative assets, Total	$ 70	$ 26
LIABILITIES
Other liabilities-derivative liabilities, Total	5	2
Not designated as hedging instruments
ASSETS
Gross Assets, subject to master netting agreements	46	29
Gross Assets, Not subject to master netting agreements		22
Gross Assets, Total	93	51
Offsetting Payables	(43)	(2)
Cash Collateral (Received) Paid	20	(23)
Derivative Asset, Fair Value, Amount Offset Against Collateral	23	4
Other assets-Derivative assets, Total	70	26
LIABILITIES
Gross Liabilities, Total	8	2
Offsetting Receivables	(43)	(2)
Cash Collateral Received (Paid)	40	2
Other liabilities-derivative liabilities, Total	5	2
Not designated as hedging instruments | Forward delivery commitments
ASSETS
Gross Assets, subject to master netting agreements	2	2
Gross Assets, Not subject to master netting agreements		1
Offsetting Payables	(2)	(2)
Cash Collateral (Received) Paid	1
Derivative Asset, Fair Value, Amount Offset Against Collateral	1
LIABILITIES
Gross Liabilities, Subject to master netting agreements	7	2
Offsetting Receivables	(7)	(2)
Cash Collateral Received (Paid)	1	2
Derivative Liability, Fair Value, Amount Offset Against Collateral	1	2
Not designated as hedging instruments | MSR-related agreements
ASSETS
Gross Assets, subject to master netting agreements	44	27
Offsetting Payables	(41)
Cash Collateral (Received) Paid	19	(23)
Derivative Asset, Fair Value, Amount Offset Against Collateral	22	4
LIABILITIES
Gross Liabilities, Subject to master netting agreements	1
Offsetting Receivables	(36)
Cash Collateral Received (Paid)	39
Derivative Liability, Fair Value, Amount Offset Against Collateral	4
Not designated as hedging instruments | Interest rate lock commitments
ASSETS
Gross Assets, Not subject to master netting agreements	$ 47	$ 21

Derivatives (Details 3)

Derivatives (Details 3) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Derivatives
Net derivative (loss) gain related to mortgage servicing rights	$ (4)	$ 50	$ 139	$ 54
Interest rate lock commitments | Gain on loans held for sale, net
Derivatives
Gains (losses) on derivative instruments	100	81	278	216
Forward delivery commitments | Gain on loans held for sale, net
Derivatives
Gains (losses) on derivative instruments	(6)	(25)	(41)	(14)
Option contracts | Gain on loans held for sale, net
Derivatives
Gains (losses) on derivative instruments	0	0	(1)	(1)
MSR-related agreements | Net derivative gain related to mortgage servicing rights
Derivatives
Net derivative (loss) gain related to mortgage servicing rights	$ (4)	$ 50	$ 139	$ 54

Other Assets (Details)

Other Assets (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Other Assets [Abstract]
Derivatives	$ 70	$ 26
Repurchase eligible loans	34	104
Equity method investments	32	32
Mortgage loans in foreclosure, net	21	24
Real estate owned, net	15	21
Income taxes receivable	0	23
Other	15	17
Total	$ 187	$ 247
Repurchase eligibility, prior number of days delinquent	90 days

Other Liabilities (Details)

Other Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Other Liabilities Disclosure [Abstract]
Legal and regulatory matters (Note 10)	$ 121	$ 105
Pension and other post-employment benefits	10	11
Income tax contingencies	10	9
Derivatives	5	2
Other	8	10
Total	$ 154	$ 137

Debt and Borrowing Arrangemen45

Debt and Borrowing Arrangements (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Debt and Borrowing Arrangements
Total Debt	$ 1,332	$ 1,348
Committed warehouse facilities
Debt and Borrowing Arrangements
Total Debt	$ 628	632
Weighted Avg-Interest Rate (as a percent)	2.70%
Available Capacity	$ 622
Uncommitted warehouse facilities
Debt and Borrowing Arrangements
Total Debt	$ 0	0
Weighted Avg-Interest Rate (as a percent)	0.00%
Available Capacity	$ 2,800
Servicing advance facility
Debt and Borrowing Arrangements
Total Debt	$ 97	111
Weighted Avg-Interest Rate (as a percent)	2.50%
Available Capacity	$ 58
Term notes due in 2019
Debt and Borrowing Arrangements
Total Debt	$ 272	271
Stated interest rate (as a percentage)	7.375%
Term notes due in 2021
Debt and Borrowing Arrangements
Total Debt	$ 335	334
Stated interest rate (as a percentage)	6.375%
Unsecured debt
Debt and Borrowing Arrangements
Total Debt	$ 607	$ 605

Debt and Borrowing Arrangemen46

Debt and Borrowing Arrangements (Details 2) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Debt and Borrowing Arrangements
Restricted cash	$ 50	$ 47
Servicing advances	668	691
Mortgage loans held for sale (unpaid principal balance)	761	$ 743
Collateral Pledged | Warehouse Facilities
Debt and Borrowing Arrangements
Restricted cash	7
Servicing advances	0
Mortgage loans held for sale (unpaid principal balance)	657
Total	664
Collateral Pledged | Servicing Advance Facility
Debt and Borrowing Arrangements
Restricted cash	15
Servicing advances	153
Mortgage loans held for sale (unpaid principal balance)	0
Total	$ 168

Debt and Borrowing Arrangemen47

Debt and Borrowing Arrangements (Details 3) $ in Millions	Sep. 30, 2016USD ($)
Contractual debt maturities
Within one year	$ 725
Between one and two years	0
Between two and three years	275
Between three and four years	0
Between four and five years	340
Thereafter	0
Total	1,340
Warehouse Facilities
Contractual debt maturities
Within one year	628
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	628
Servicing Advance Facility
Contractual debt maturities
Within one year	97
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	97
Unsecured Debt
Contractual debt maturities
Within one year	0
Between one and two years	0
Between two and three years	275
Between three and four years	0
Between four and five years	340
Thereafter	0
Total	$ 615

Debt and Borrowing Arrangemen48

Debt and Borrowing Arrangements (Details 4)	Jun. 15, 2016USD ($)	Jun. 13, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 22, 2016USD ($)	Jun. 17, 2016USD ($)	Mar. 31, 2016USD ($)	Mar. 29, 2016USD ($)
Warehouse Facilities
Debt and Borrowing Arrangements
Debt covenant, cash and cash equivalents in excess of legal and regulatory liabilities			$ 150,000,000
Debt covenant minimum tangible net worth			$ 750,000,000			$ 1,000,000,000
Debt covenant, maximum unsecured indebtedness to tangible net worth ratio			1.25
Warehouse Facilities | Fannie Mae
Debt and Borrowing Arrangements
Debt instrument current borrowing capacity		$ 3,000,000,000
Committed warehouse facilities | Barclays Bank PLC
Debt and Borrowing Arrangements
Debt instrument current borrowing capacity							$ 100,000,000
Committed warehouse facilities | Wells Fargo Bank
Debt and Borrowing Arrangements
Debt instrument current borrowing capacity				$ 450,000,000
Committed warehouse facilities | Fannie Mae
Debt and Borrowing Arrangements
Debt instrument current borrowing capacity		300,000,000
Increase (decrease) of current borrowing capacity		$ (200,000,000)
Committed warehouse facilities | Credit Suisse
Debt and Borrowing Arrangements
Debt instrument current borrowing capacity					$ 250,000,000
Uncommitted warehouse facilities | Barclays Bank PLC
Debt and Borrowing Arrangements
Debt instrument current borrowing capacity							$ 100,000,000
Uncommitted warehouse facilities | Credit Suisse
Debt and Borrowing Arrangements
Debt instrument current borrowing capacity					$ 325,000,000
Variable Funding Notes
Debt and Borrowing Arrangements
Debt instrument, face amount	$ 155,000,000
Debt instrument, extension term	1 year

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	(27.50%)	(46.20%)	(39.10%)	(38.80%)
Statutory federal income tax rate (as a percent)	35.00%	35.00%	35.00%	35.00%

Credit Risk (Details)

Credit Risk (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)loan	Dec. 31, 2015USD ($)loan
Credit Risk
Period of origination of loans within which they are sold to investors	30 days
Loan Servicing Portfolio Composition
Total servicing portfolio	$ 227,883	$ 226,259
Weighted-average interest rate (as a percent)	3.80%	3.80%
Portfolio Delinquency
Number of Loans (as a percent)	3.22%	3.48%
Unpaid Balance (as a percent)	2.24%	2.47%
Foreclosure/real estate owned
Number of Loans (as a percent)	1.62%	1.74%
Unpaid Balance (as a percent)	1.35%	1.51%
Number of loans in foreclosure | loan	13,710	15,487
Unpaid principal balance of loans in foreclosure	$ 2,700	$ 3,000
30 days
Portfolio Delinquency
Number of Loans (as a percent)	2.13%	2.22%
Unpaid Balance (as a percent)	1.47%	1.55%
60 days
Portfolio Delinquency
Number of Loans (as a percent)	0.42%	0.44%
Unpaid Balance (as a percent)	0.28%	0.30%
90 or more days
Portfolio Delinquency
Number of Loans (as a percent)	0.67%	0.82%
Unpaid Balance (as a percent)	0.49%	0.62%
Conventional loans
Loan Servicing Portfolio Composition
Total servicing portfolio	$ 200,592	$ 197,971
Government loans
Loan Servicing Portfolio Composition
Total servicing portfolio	23,415	24,087
Home equity lines of credit
Loan Servicing Portfolio Composition
Total servicing portfolio	3,876	4,201
Owned
Loan Servicing Portfolio Composition
Total servicing portfolio	89,598	99,869
Subserviced
Loan Servicing Portfolio Composition
Total servicing portfolio	$ 138,285	$ 126,390

Credit Risk (Details 2)

Credit Risk (Details 2) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Changes in repurchase and foreclosure-related reserves
Balance, beginning of period	$ 89	$ 93
Realized losses	(17)	(15)
Increase in reserves due to:
Changes in assumptions	10	5
New loan sales	5	10
Balance, end of period	87	$ 93
Loan repurchase and indemnification liability	65		$ 62
Estimated amount of reasonably possible losses in excess of the recorded liability	130
Loans with full risk of loss or with respect to which the company has identified a breach of representation and warranty provisions	$ 172
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	12.00%
Recourse obligations
Increase in reserves due to:
Estimated amount of reasonably possible losses in excess of the recorded liability	$ 35

Credit Risk (Details 3)

Credit Risk (Details 3) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Credit Risk
Mortgage loans in foreclosure and related advances	$ 30	$ 34
Allowance for probable foreclosure losses	(9)	(10)
Mortgage loans in foreclosure, net	21	24
Real estate owned and related advances	28	38
Adjustment to value for real estate owned	(13)	(17)
Real estate owned, net	$ 15	$ 21

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	1 Months Ended
	Jun. 30, 2015	Sep. 30, 2016	Dec. 31, 2015
Loss Contingencies [Line Items]
Liability associated with legal and regulatory contingencies		$ 121	$ 105
Estimated amount of reasonably possible losses in excess of the recorded liability		$ 130
Unfavorable Regulatory Action
Loss Contingencies [Line Items]
Final order amount company must pay	$ 109

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Fair Value Measurements
Mortgage servicing rights	$ 645	$ 880	$ 927	$ 1,005
Other assets-Derivative assets, Total	70	26
Other liabilities-derivative liabilities, Total	5	2
Recurring basis | Interest rate lock commitments
Fair Value Measurements
Other assets—Derivative assets, Cash Collateral and Netting	0	0
Recurring basis | Forward delivery commitments
Fair Value Measurements
Other assets—Derivative assets, Cash Collateral and Netting	(1)	(2)
Other liabilities-derivative liabilities, Cash Collateral and Netting	(6)	0
Recurring basis | MSR-related agreements
Fair Value Measurements
Other assets—Derivative assets, Cash Collateral and Netting	(22)	(23)
Other liabilities-derivative liabilities, Cash Collateral and Netting	3
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
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
Other liabilities-derivative liabilities	0
Recurring basis | Level Two
Fair Value Measurements
Mortgage loans held for sale	716	704
Mortgage servicing rights	0	0
Recurring basis | Level Two | Interest rate lock commitments
Fair Value Measurements
Other assets—Derivative assets	0	0
Recurring basis | Level Two | Forward delivery commitments
Fair Value Measurements
Other assets—Derivative assets	2	3
Other liabilities-derivative liabilities	7	2
Recurring basis | Level Two | MSR-related agreements
Fair Value Measurements
Other assets—Derivative assets	44	27
Other liabilities-derivative liabilities	1
Recurring basis | Level Three
Fair Value Measurements
Mortgage loans held for sale	45	39
Mortgage servicing rights	645	880
Recurring basis | Level Three | Interest rate lock commitments
Fair Value Measurements
Other assets—Derivative assets	47	21
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
Other liabilities-derivative liabilities	0
Total | Recurring basis
Fair Value Measurements
Mortgage loans held for sale	761	743
Mortgage servicing rights	645	880
Total | Recurring basis | Interest rate lock commitments
Fair Value Measurements
Other assets-Derivative assets, Total	47	21
Total | Recurring basis | Forward delivery commitments
Fair Value Measurements
Other assets-Derivative assets, Total	1	1
Other liabilities-derivative liabilities, Total	1	2
Total | Recurring basis | MSR-related agreements
Fair Value Measurements
Other assets-Derivative assets, Total	22	$ 4
Other liabilities-derivative liabilities, Total	$ 4

Fair Value Measurements (Deta55

Fair Value Measurements (Details 2) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Difference between carrying amounts measured at fair value and aggregate unpaid principal amount
Carrying amount, Total	$ 761	$ 743
Mortgage loans held for sale
Difference between carrying amounts measured at fair value and aggregate unpaid principal amount
Carrying amount, Total	761	743
Carrying amount, Loans 90 days or more past due and on non-accrual status	8	9
Aggregate unpaid principal balance, Total	753	738
Aggregate unpaid principal balance, Loans 90 days or more past due and on non-accrual status	11	11
Difference, Total	8	5
Difference, Loans 90 days or more past due and on non-accrual status	$ (3)	$ (2)

Fair Value Measurements (Deta56

Fair Value Measurements (Details 3) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Components of Mortgage loans held for sale
Mortgage loans held for sale	$ 761	$ 743
First mortgages
Components of Mortgage loans held for sale
Mortgage loans held for sale	715	704
First mortgages, Conforming
Components of Mortgage loans held for sale
Mortgage loans held for sale	611	616
First mortgages, Non-conforming
Components of Mortgage loans held for sale
Mortgage loans held for sale	104	88
Second lien
Components of Mortgage loans held for sale
Mortgage loans held for sale	3	4
Scratch and Dent
Components of Mortgage loans held for sale
Mortgage loans held for sale	42	35
Other
Components of Mortgage loans held for sale
Mortgage loans held for sale	$ 1	$ 0

Fair Value Measurements (Deta57

Fair Value Measurements (Details 4)	9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Information regarding the initial and ending capitalization rate of MSRs
Initial capitalization rate of additions to MSRs (as a percent)	1.00%	1.13%
Capitalization servicing rate (as a percent)	0.73%		0.89%
Capitalization servicing multiple (as a percent)	260.00%		310.00%
Weighted-average servicing fee, in basis points (as a percent)	0.28%		0.29%
Mortgage servicing rights
Significant assumptions used in estimating fair value
Weighted-average prepayment speed (CPR) (as a percent)	12.60%		9.10%
Option adjusted spread, in basis points (as a percent)	9.87%		9.77%
Weighted-average delinquency rate (as a percent)	5.50%		5.30%

Fair Value Measurements (Deta58

Fair Value Measurements (Details 5) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Derivative Instruments
Average pull through percentage used in measuring fair value of interest rate lock commitments	76.00%	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	$ (32)
Impact on fair value of 20% adverse change, Weighted-Average Prepayment Speed	(62)
Impact on fair value of 10% adverse change, Option Adjusted Spread	(26)
Impact on fair value of 20% adverse change, Option Adjusted Spread	(50)
Impact on fair value of 10% adverse change, Weighted Average Delinquency Rate	(18)
Impact on fair value of 20% adverse change, Weighted Average Delinquency Rate	$ (35)

Fair Value Measurements (Deta59

Fair Value Measurements (Details 6) - Level Three - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Interest rate lock commitments
Activity in assets classified within Level Three of the valuation hierarchy
Balance, beginning of period	$ 39	$ 22	$ 21	$ 22
Purchases, Issuances, Sales and Settlements:
Purchases	0	0	0	0
Issuances	0	0	0	0
Sales	0	0	0	0
Settlements	(92)	(74)	(252)	(209)
Purchases, Issuances, Sales and Settlements Total	(92)	(74)	(252)	(209)
Realized and unrealized gains (losses) included in:
Realized and unrealized gains (losses)	100	81	278	216
Transfers into Level Three	0	0	0	0
Transfers out of Level Three	0	0	0	0
Balance, end of period	47	29	47	29
Interest rate lock commitments | Gain on loans held for sale, net
Realized and unrealized gains (losses) included in:
Realized and unrealized gains (losses)	100	81	278	216
Interest rate lock commitments | Change in fair value of mortgage servicing rights
Realized and unrealized gains (losses) included in:
Realized and unrealized gains (losses)	0	0	0	0
Interest rate lock commitments | Interest income
Realized and unrealized gains (losses) included in:
Realized and unrealized gains (losses)	0	0	0	0
Mortgage loans held for sale
Activity in assets classified within Level Three of the valuation hierarchy
Balance, beginning of period	42	48	39	42
Purchases, Issuances, Sales and Settlements:
Purchases	3	7	11	24
Issuances	2	2	5	4
Sales	(6)	(15)	(20)	(23)
Settlements	(4)	(3)	(9)	(8)
Purchases, Issuances, Sales and Settlements Total	(5)	(9)	(13)	(3)
Realized and unrealized gains (losses) included in:
Realized and unrealized gains (losses)	0	1	2	5
Transfers into Level Three	13	8	33	23
Transfers out of Level Three	(5)	(9)	(16)	(28)
Balance, end of period	45	39	45	39
Mortgage loans held for sale | Gain on loans held for sale, net
Realized and unrealized gains (losses) included in:
Realized and unrealized gains (losses)	0	0	0	1
Mortgage loans held for sale | Change in fair value of mortgage servicing rights
Realized and unrealized gains (losses) included in:
Realized and unrealized gains (losses)	0	0	0	0
Mortgage loans held for sale | Interest income
Realized and unrealized gains (losses) included in:
Realized and unrealized gains (losses)	0	1	2	4
Mortgage servicing rights
Activity in assets classified within Level Three of the valuation hierarchy
Balance, beginning of period	679	1,020	880	1,005
Purchases, Issuances, Sales and Settlements:
Purchases	0	0	0	0
Issuances	15	32	45	80
Sales	(3)	(10)	(8)	(35)
Settlements	0	0	0	0
Purchases, Issuances, Sales and Settlements Total	12	22	37	45
Realized and unrealized gains (losses) included in:
Realized and unrealized gains (losses)	(46)	(115)	(272)	(123)
Transfers into Level Three	0	0	0	0
Transfers out of Level Three	0	0	0	0
Balance, end of period	645	927	645	927
Mortgage servicing rights | Gain on loans held for sale, net
Realized and unrealized gains (losses) included in:
Realized and unrealized gains (losses)	0	0	0	0
Mortgage servicing rights | Change in fair value of mortgage servicing rights
Realized and unrealized gains (losses) included in:
Realized and unrealized gains (losses)	(46)	(115)	(272)	(123)
Mortgage servicing rights | Interest income
Realized and unrealized gains (losses) included in:
Realized and unrealized gains (losses)	$ 0	$ 0	$ 0	$ 0

Fair Value Measurements (Deta60

Fair Value Measurements (Details 7) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Level Two
Debt
Fair value of debt	$ 1,300		$ 1,300		$ 1,300
Level Two | Market based approach
Debt
Fair value of debt	609		609
Level Two | Observable spreads and terms for recent pricing of similar instruments
Debt
Fair value of debt	725		725
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	42	$ 27	43	$ 26
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	$ (9)	$ (72)	$ (174)	$ 9

Variable Interest Entities (Det

Variable Interest Entities (Details) - USD ($) $ in Millions		Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
ASSETS
Cash		$ 996	$ 906	$ 982	$ 1,259
Restricted cash		50	47
Mortgage loans held for sale		761	743
Accounts receivable, net		89	81
Servicing advances, net		668	691
Property and equipment, net		50	47
Other assets		187	247
Total assets	[1]	3,446	3,642
LIABILITIES
Accounts payable and accrued expenses		200	251
Debt		1,332	1,348
Other liabilities		154	137
Total liabilities	[1]	2,186	2,294
Variable Interest Entity
ASSETS
Cash		61	80
Restricted cash		20	18
Mortgage loans held for sale		436	389
Accounts receivable, net		26	5
Servicing advances, net		153	157
Property and equipment, net		1	1
Other assets		19	12
Total assets		716	662
LIABILITIES
Accounts payable and accrued expenses		15	14
Debt		486	456
Other liabilities		6	6
Total liabilities		507	476
PHH Home Loans | Variable Interest Entity
ASSETS
Cash		61	80
Restricted cash		5	5
Mortgage loans held for sale		436	389
Accounts receivable, net		26	5
Servicing advances, net		0	0
Property and equipment, net		1	1
Other assets		18	11
Total assets		547	491
Assets held as collateral		411	361
LIABILITIES
Accounts payable and accrued expenses		15	14
Debt		388	345
Other liabilities		6	6
Total liabilities		409	365
Servicing Advance Receivables Trust | Variable Interest Entity
ASSETS
Cash		0	0
Restricted cash		15	13
Mortgage loans held for sale		0	0
Accounts receivable, net		0	0
Servicing advances, net		153	157
Property and equipment, net		0	0
Other assets		1	1
Total assets		169	171
Assets held as collateral		168	170
LIABILITIES
Accounts payable and accrued expenses		0	0
Debt		98	111
Other liabilities		0	0
Total liabilities		$ 98	$ 111
[1]	The Condensed Consolidated Balance Sheets include assets and liabilities of variable interest entities. The assets can be used only to settle the obligations of the variable interest entities, and the liabilities have creditors or beneficial interest holders that do not have recourse to PHH Corporation and subsidiaries. These assets and liabilities are as follows: September 30, 2016 December 31, 2015ASSETS Cash and cash equivalents$61 $80Restricted cash20 18Mortgage loans held for sale436 389Accounts receivable, net26 5Servicing advances, net153 157Property and equipment, net1 1Other assets19 12Total assets$716 $662 LIABILITIES Accounts payable and accrued expenses$15 $14Debt486 456Other liabilities6 6Total liabilities$507 $476

Segment Information (Details)

Segment Information (Details) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)segment	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment				2
Segment Information
Assets	[1]	$ 3,446		$ 3,446		$ 3,642
Net Revenues		197	$ 169	550	$ 667
Segment (Loss) Profit		(35)	(90)	(107)	(141)
Other
Segment Information
Assets		908		908		804
Net Revenues		0	0	0	6
Segment (Loss) Profit		(5)	(3)	(10)	(49)
Mortgage Production segment | Operating segment
Segment Information
Assets		1,062		1,062		1,036
Net Revenues		168	149	443	460
Segment (Loss) Profit		22	(10)	9	(26)
Mortgage Servicing segment | Operating segment
Segment Information
Assets		1,476		1,476		$ 1,802
Net Revenues		29	20	107	201
Segment (Loss) Profit		$ (52)	$ (77)	$ (106)	$ (66)
[1]	The Condensed Consolidated Balance Sheets include assets and liabilities of variable interest entities. The assets can be used only to settle the obligations of the variable interest entities, and the liabilities have creditors or beneficial interest holders that do not have recourse to PHH Corporation and subsidiaries. These assets and liabilities are as follows: September 30, 2016 December 31, 2015ASSETS Cash and cash equivalents$61 $80Restricted cash20 18Mortgage loans held for sale436 389Accounts receivable, net26 5Servicing advances, net153 157Property and equipment, net1 1Other assets19 12Total assets$716 $662 LIABILITIES Accounts payable and accrued expenses$15 $14Debt486 456Other liabilities6 6Total liabilities$507 $476

Segment Information (Details 2)

Segment Information (Details 2) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting [Abstract]
Loss on exchange of Convertible notes			$ 0	$ 30
Reconciliation of (Loss) income before income taxes to Segment (loss) profit
Loss before income taxes	$ (29)	$ (87)	(98)	(130)
Less: net income attributable to noncontrolling interest	6	3	9	11
Segment loss	$ (35)	$ (90)	$ (107)	$ (141)

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ in Millions	Nov. 08, 2016	Sep. 30, 2016	Sep. 30, 2016	Dec. 31, 2015
Subsequent Event [Line Items]
Capitalization servicing rate (as a percent)			0.73%	0.89%
Servicing advances, net		$ 668	$ 668	$ 691
Private label solutions, mortgage production volume percentage			78.00%
Subsequent Event
Subsequent Event [Line Items]
Commitment to sell Mortgage Servicing Rights, amount requires consent of originator prior to sale, percentage	30.00%
GNMA Loans
Subsequent Event [Line Items]
Commitment to sell Mortgage Servicing Rights		$ 14,800	$ 14,800
Capitalization servicing rate (as a percent)		0.70%
Commitment to sell Mortgage servicing rights, fair value		$ 104	104
Servicing advances, net		$ 16	$ 16
GNMA Loans | Subsequent Event
Subsequent Event [Line Items]
Commitment to sell Mortgage Servicing Rights, MSR GNMA sales price	$ 122
Private Label Services | Minimum | Subsequent Event
Subsequent Event [Line Items]
Exit costs	75
Private Label Services | Maximum | Subsequent Event
Subsequent Event [Line Items]
Exit costs	$ 105