EXHIBIT (12)




                        PHH CORPORATION AND SUBSIDIARIES

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




                                Six Months Ended                 Year Ended April 30
                                October 31, 1995    1995      1994       1993       1992        1991
                                ----------------    ----      ----       -----      -----      -----
                                                                            

Income from continuing operations
     before income taxes ...........   $ 64,880   $121,318   $109,796   $ 94,238   $ 83,117   $ 77,759
Add:
     Interest expense ..............    122,415    194,196    162,108    193,935    237,058    302,853
     Interest portion of rentals* ..      3,832      8,065      9,088      8,456      8,665      7,796
                                       --------   --------   --------   --------   --------    -------
Earnings available for fixed charges   $191,127   $323,579   $280,992   $296,629   $328,840   $388,408
                                       ========   ========   ========   ========   ========    =======
Fixed charges:
     Interest expense ..............   $122,415   $194,196   $162,108   $193,935   $237,058   $302,853
     Interest portion of rentals* ..      3,832      8,065      9,088      8,456      8,665      7,796
                                       --------   --------   --------   --------   --------   --------
                                       $126,247   $202,261   $171,196   $202,391   $245,723   $310,649
                                       ========   ========   ========   ========   ========   ========
Ratio of earnings to fixed charges .       1.51       1.60       1.64       1.47       1.34       1.25
                                       ========   ========   ========   ========   ========   ========




*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.




                                   SIGNATURES



                        PHH CORPORATION AND SUBSIDIARIES



Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                                                 PHH CORPORATION



Date:    December 14, 1995

                                                               Roy A. Meierhenry
                                                       Senior Vice President and
                                                         Chief Financial Officer