Exhibit (12) 
                                                                               
                                                                               
                                    
                                                                               
                                                                               
                       PHH CORPORATION AND SUBSIDIARIES                        
              COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES                
                            (dollars in thousands)                             
                                   
                            Nine Months                          Year Ended April 30,                         
                               Ended     ---------------------------------------------------------------------
                             01/31/94             1993          1992          1991          1990          1989
                           ------------- -------------  ------------  ------------  ------------   -----------
                                                                                      
Income from continuing                                                                                        
operations before income                                                                                      
taxes                         $79,201          94,238$        83,117       $77,759       $89,698       $77,525
Add:                                                                                                          
  Interest expense            124,979          193,935       237,058       302,853       352,469       284,845
  Interest portion of          6,638             8,456         8,665         7,796         6,251         6,224
rentals*                   ------------- ------------- ------------- ------------- ------------- -------------
Earnings available for                                                                                        
fixed charges                $210,818         $296,629      $328,840      $388,408      $448,418      $368,594
                           ------------- ------------- ------------- ------------- ------------- -------------
                           ------------- ------------- ------------- ------------- ------------- -------------
                                                                               
Fixed charges:                                                                 
  Interest expense           $124,979         $193,935      $237,058      $302,853      $352,469      $284,845
  Interest portion of                                                                                         
rentals*                       6,638             8,456         8,665         7,796         6,251         6,224
                           ------------- ------------- ------------- ------------- ------------- -------------
                             $131,617         $202,391      $245,723      $310,649      $358,720      $291,069
                           ------------- ------------- ------------- ------------- ------------- -------------
                           ------------- ------------- ------------- ------------- ------------- -------------
                                                                               
Ratio of earnings to fixed                                                     
charges                        1.60               1.47          1.34          1.25          1.25          1.27
                           ------------- ------------- ------------- ------------- ------------- -------------
                           ------------- ------------- ------------- ------------- ------------- -------------
<FN>                                                                         
*Amounts   reflect   a  one-third  portion  of  rentals,  the  portion  deemed 
representative of the interest factor.                                         
                                                                               
Note:  The  interest  included  in  fixed  charges  consists  of  the  amounts 
       identified  as  interest  expense  in  the  Consolidated  Statements of 
       Income,  the  substantial  portion of which represents interest on debt 
       incurred to finance leasing activities and mortgage banking activities, 
       as  well as the interest costs associated with home relocation services 
       which  are  ordinarily recovered through direct billings to clients and 
       are included with "Costs, including interest, of carrying and reselling 
       homes" in the Consolidated Financial Statements.