EXHIBIT 12

                        PHH CORPORATION AND SUBSIDIARIES
                COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                              (DOLLARS IN MILLIONS)

<Table>
<Caption>
                                                             SIX MONTHS ENDED
                                                                 JUNE 30,
                                                           -------------------
                                                            2001         2000
                                                           ------       ------
                                                                  
Income before income taxes                                 $  237       $   90
Plus:  Fixed charges                                          154           57
                                                           ------       ------
EARNINGS AVAILABLE TO COVER FIXED CHARGES                  $  391       $  147
                                                           ======       ======

FIXED CHARGES (1):
Interest, including amortization of deferred
  financing costs                                          $  148       $    2
Interest portion of rental payment                              6            5
                                                           ------       ------

TOTAL FIXED CHARGES                                        $  154       $   57
                                                           ======       ======

RATIO OF EARNINGS TO FIXED CHARGES                         $ 2.54X      $ 2.58X
                                                           ======       ======
</Table>

- ----------

(1)   Fixed charges consist of interest expense on all  indebtedness  (including
      amortization  of deferred  financing  costs) and the portion of  operating
      lease rental expense that is representative of the interest factor (deemed
      to be one-third of operating lease rentals).