EXHIBIT (12)




                           PHH CORPORATION AND SUBSIDIARIES

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


                                                   Three                          Year Ended April 30
                                                Months Ended
                                               July 31, 1995         1995         1994          1993       1992           1991
                                                                                                      
Income from continuing operations     
     before income taxes                          $    31,663     $ 121,318     $ 109,796     $  94,238   $  83,117     $  77,759
Add:
     Interest expense                                  60,631       194,196       162,108       193,935     237,058       302,853
     Interest portion of rentals*                       1,956         8,065         9,088         8,456       8,665         7,796
Earnings available for fixed charges              $    94,250     $ 323,579     $ 280,992     $ 296,629   $ 328,840     $ 388,408

Fixed charges:
     Interest expense                             $    60,631     $ 194,196     $ 162,108     $ 193,935   $ 237,058     $ 302,853
     Interest portion of rentals*                       1,956         8,065         9,088         8,456       8,665         7,796
                                                  $    62,587     $ 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.