PHH 8K Results of Operations and Financial Condition | SEC 24 Jan 07

Shareholders’ Meeting

January 24, 2007

Exhibit 99.2

Forward Looking Statements

Statements in this presentation which are subject to known and unknown risks, uncertainties and other factors which may cause our
actual results, performance or achievements to differ materially from
those expressed or implied by such forward-looking statements. These
forward-looking statements are based on various factors and were
derived utilizing numerous important assumptions and other important
factors that could cause results to differ materially from those in the
forward-looking statements. Statements preceded by, followed by or
that otherwise include the words “believes,” “expects,” “anticipates,”
“plans,” “may increase,” and “could” are generally forward-looking in
nature and not historical facts. An example of a forward-looking
statement is any forecasted 2006 or 2007 financial information. Factors
that could cause actual results to differ materially from expectations
are included in the “Cautionary Note Regarding Forward-Looking
Statements” and “Item 1A Risk Factors” in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2005.

* Inside Mortgage Finance 2006 unofficial YTD results

** 2006 Automotive Fleet Magazine

Who We Are

Leading outsource provider of mortgage and vehicle fleet management

services

One of the top ten retail originators of residential mortgages in U.S.*

Second largest fleet management provider in U.S. and Canada

combined**

61-year operating history – innovator in industry

Publicly traded on NYSE, 1978 – 1997 and again 2005-present

Clients include Realogy real estate brands; leading financial institutions in

mortgage segment; and nearly one-third of Fortune 500 in fleet
management segment

Key statistics (unaudited as of 12-31-06):

$160.2 billion mortgage loans serviced

Over 600,000 fleet vehicles under management

Agenda

Update on financial statements and

financing activities

2006 guidance update

Brief business review

PHH Mortgage

PHH Arval

Summary

Update on Financial Statements

Previously disclosed accounting issues resolved

with filing of 2005 Form 10-K

Working to remediate material weaknesses

Audit opinion included “going concern”

explanatory paragraph related to our continued
need to obtain waivers for delivery of financial
statements

Since then, obtained waivers on revolving credit

agreements and certain other facilities:

Q1 and Q2 ’06 10-Qs – 3-30-07

Q3 ’06 10-Q – 4-30-07

2006 10-K and Q1 ’07 10-Q – 6-29-07

Financing Activity Update

Recent Facility Renewals

$750 Million Sheffield (Barclays) Mortgage Warehouse

Facility for 364 days to 10/29/07

Increased size from $500 Million

Expanded loan eligibility

Bankruptcy remote

$1 Billion Bishop’s Gate CP Liquidity Facility

(Mortgage Warehouse) for 364 days to 11/30/07

Obtained total commitments of $1.467 billion at

renewal

$1 Billion Chesapeake Fleet CP Conduit Facility to

11/30/07

Incremental Fees for Audit and Consulting

Incremental fees and expenses for additional auditing,

financial, legal and other consulting services:

$12 million charged to 2005 operations

$12 million charged to 2006 operations

Additional liquidity waiver, relationship fees and

associated non-cash write-offs

$8 million charged to operations in 2006 ($4M cash; $4M

non-cash write-offs)

$12 million amortized over term of related financing

arrangements

2006 Guidance

October ’06: estimated consolidated pre-tax results

for the Company would be breakeven, assuming no
significant swings related to hedging portfolio

Today: expect consolidated pre-tax loss for the

Company of between $10M to $20M and after tax
loss of between $22M to $29M

Due to negative results from the servicing hedge in Q4 ‘06

PHH Mortgage – 2006 Review

2006 was a challenging year

Price competition (margin compression)

Downturn in overall industry

volume—closed $41B vs. plan of $48B

Delays in signing new outsource clients

caused by late filing of 2005 10-K

Q4 ’06 Full year

($ in billions, except average loan amount)

2006 Operating Metrics

Purchase closings $ 6.1 $ 28.5

Refinance closings $ 3.5 $ 12.8

Total closings $ 9.6 $ 41.3

Number of loans closed 47,485 206,063

Average loan amount $201,862 $200,238

Loans sold $ 6.7 $ 31.6

Avg loan servicing portfolio $ 160.3 $ 159.3

Industry Volume

($ Bn)

____________________

(1)Industry volume in Billions. Source: Pre-2001, Mortgage Bankers Association; Post-2001, Fannie Mae as of January 5, 2007.

1993–1995 Down Cycle

2005–2006

CUNA

TDBankNorth

GE Money Bank

Columbia State Bank

Citizens Bank of

Michigan

Arizona FCU

1998–2000 Down Cycle

First Interstate

Wells Fargo

Mellon Bank

US Bank

Merrill Lynch

Fleet

PNC

Northern Trust

3 new

signings as
of 1/24

2007

Origination Market

(Industry Volume in Billions - FNMA forecast)

PHH has historically captured more market share in declining markets

Industry Volume

($ Bn)

PHH Mortgage Prospects

Dialogue with potential new partners

has picked up since 10-K filed

Signed 3 new accounts with expected

combined annual origination volume of
approximately $600M

Currently in discussions with 15 other

companies with annual origination
volume opportunity of approximately
$5B

Operating Improvements

Resized cost structure for anticipated $41B

origination volume in 2007

Approx. $22M reduction in operating expenses for 2007

Approx. $28M reduction in G&A for 2007

Assumptions for 2007-Mortgage

Segments

Origination Volume – $41 Billion

10 year Treasury – between 4.5% to 5% for 2007

Industry Volume – $2.3T in 2007 vs. $2.5T in 2006

PHH Market Share – 1.6% in 2007 vs. 1.5% in 2006

New Signings Volume – approximately $600 Million

Pricing Margins Improve – 10 bps

Lower Cost to Hedge Servicing

Risks

Opportunities

Origination Margin (5bp change) (15) 15

Change in Closing Volume ($1B change) (12) 12

Estimated impact on pre-tax income

($ in millions)

2007 Risks & Opportunities

*Source: 2006 Automotive Fleet magazine. Data for Fleets over 15 units.

PHH Arval Industry Overview

PHH is #2 commercial fleet

management company in the U.S
and Canada combined

Total U.S. opportunity of 6.1M

vehicles, 3.3M served vehicles in
fleets > 15 units

Over 100 clients have been with PHH Arval for 20 years or more

PHH serves nearly one-third of Fortune 500 companies

Customer Base

Fleet Business Platform

Open-end lease where residual risk is borne by the

client is the predominant asset-based product (97%)

Strong creditworthy client base – secured lender to the

Fortune 1000

Write-offs of less than 7 bps relative to assets

Continued evolution from asset-based to

service/fee-based business

Low volatility through economic cycles

Fleet Business Platform

Fleet industry is generally not impacted by

the cyclical rate environment

During 2006, we signed 38 accounts

representing approximately 22,000 units
which we expect will phase in over the next 3
to 5 years

(In thousands)	Average Units for 2006	Unit Change Compared to 2005
Leased vehicles	334	9
Maintenance cards	339	1
Fuel cards	325	4
Accident management vehicles	331	(1)

2006 Operating Metrics

Fleet growth expected to be flat year over year

Potential for additional 2007 growth from:

Used car residual gains

Expense management

Fuel price

PHH Arval 2007 Outlook

PHH Summary and Conclusion

2006 financial statement filings in process

Expect to become current filer by 6/30/2007

Mortgage segments implementing turnaround plan for 2007

Cost cuts have already sized business for $41 Billion

volume

Modest improvement in margins are already evident in

industry pricing

Combined mortgage segments expected to be profitable

in 2007 based on current assumptions

PHH Inactive 8-KResults of Operations and Financial Condition