PHH to Cut Costs by 50 million in 2007, Job Cuts Likely

PHH in Mount Laurel, a provider of fleet-management and mortgage services, said job cuts in its mortgage-production and mortgage-servicing division will help the company save about $50 million in 2007. In addition to cutting jobs, the company said it will reduce its spending on Internet technology and outsourcedPHH (NYSE:PHH) in Mount Laurel, a provider of fleet-management and mortgage services, said job cuts in its mortgage-production and mortgage-servicing division will help the company save about $50 million in 2007. In addition to cutting jobs, the company said it will reduce its spending on Internet technology and outsourced back-office operations. “We believe that these actions, combined with an expected improvement in gain on sale margins, will return our combined mortgage segments to profitability in 2007,” said Terry Edwards, PHH’s president and CEO. “We will continue to evaluate additional steps to reduce costs in the combined mortgage segments.” PHH reportedly expects to post a $22 million to $29 million loss for 2006. Shares of PHH traded at $29.28, up $0.31, this afternoon.