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, 1996       1996            1995          1994           1993         1992
                                            -------------       ----            ----          ----           ----         ----
 
Income from continuing operations
     before income taxes                    $    37,113     $  139,148     $  121,318    $  109,796       $   94,238   $   83,117
Add:
     Interest expense                            65,365        252,966        194,196       162,108          193,935      237,058
     Interest portion of rentals*                 2,011          7,840          8,065         9,088            8,456        8,665
                                             ----------      ---------      ---------     ---------        ---------   ----------
Earnings available for fixed charges        $   104,489     $  399,954     $  323,579    $  280,992       $  296,629   $  328,840
                                             ==========      =========      =========     =========        =========    =========

Fixed charges:
     Interest expense                       $    65,365     $  252,966     $  194,196    $  162,108       $  193,935   $  237,058
     Interest portion of rentals*                 2,011          7,840          8,065         9,088            8,456        8,665
                                             ----------      ---------      ---------     ---------        ---------    ---------
                                            $    67,376     $  260,806     $  202,261    $  171,196       $  202,391   $  245,723
                                             ==========      =========      =========     =========        =========    =========


Ratio of earnings to fixed charges                 1.55           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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