EXHIBIT (12)



                        PHH CORPORATION AND SUBSIDIARIES

                Computation of Ratio of Earnings to Fixed Charges
                             (dollars in thousands)



                                                  Nine                                Year Ended April 30
                                              Months Ended    --------------------------------------------------------------------
                                            January 31, 1997     1996           1995          1994           1993          1992
                                            ----------------     ----           ----          ----           ----          ----
                                                                                               
Income from continuing operations
     before income taxes                       $  127,949     $  139,148     $  121,318    $  109,796     $   94,238    $   83,117
Add:
     Interest expense                             191,569        252,966        194,196       162,108        193,935       237,058
     Interest portion of rentals*                   5,978          7,840          8,065         9,088          8,456         8,665
                                                ---------      ---------      ---------     ---------      ---------     ---------
Earnings available for fixed charges           $  325,496     $  399,954     $  323,579    $  280,992     $  296,629    $  328,840
                                                =========      =========      =========     =========      =========     =========

Fixed charges:
     Interest expense                          $  191,569     $  252,966     $  194,196    $  162,108     $  193,935    $  237,058
     Interest portion of rentals*                   5,978          7,840          8,065         9,088          8,456         8,665
                                                ---------      ---------      ---------     ---------      ---------     ---------
                                               $  197,547     $  260,806     $  202,261    $  171,196     $  202,391    $  245,723
                                                =========      =========      =========     =========      =========     =========


Ratio of earnings to fixed charges                   1.65           1.53           1.60          1.64           1.47          1.34
                                                =========      =========      =========     =========      =========     =========


* 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.

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