EXHIBIT (12)


                          PHH CORPORATION AND SUBSIDIARIES

                   Computation of Ratio of Earnings to Fixed Charges





                                            Three
                                          Months Ended                               Year Ended April 30,
(In thousands)                              07/31/94          1994         1993            1992           1991            1990
                                                                                                   
Income from continuing operations
    before income taxes                   $     28,035    $   109,796       94,238    $     83,117    $    77,759     $    89,698
Add:
    Interest expense                            40,904        162,108      193,935         237,058        302,853         352,469
    Interest portion of rentals*                 1,989          9,088        8,456           8,665          7,796           6,251
Earnings available for fixed charges      $     70,928     $  280,992   $  296,629     $   328,840     $  388,408     $   448,418


Fixed charges:
    Interest expense                      $     40,904     $  162,108   $  193,935      $  237,058     $  302,853      $  352,469
    Interest portion of rentals*                 1,989          9,088        8,456           8,665          7,796           6,251
                                          $     42,893     $  171,196   $  202,391      $  245,723     $  310,649      $  358,720
    
Ratio of earnings to fixed charges                1.65           1.64         1.47            1.34           1.25           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.

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