PHHInvestor Presentation February 13, 2012-1

PHH Corporation
Investor Presentation
February 13, 2012
2 2012 PHH Corporation. All rights reserved.

Forward-Looking Statements
Certain statements in this presentation and in any accompanying oral remarks made in connection with this presentation are forward-
looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, forward looking-statements are
not based on historical facts but instead represent only our current beliefs regarding future events. All forward-looking statements are, by
their nature, subject to risks, uncertainties and other factors that could cause actual results, performance or achievements to differ
materially from those expressed or implied in such forward-looking statements. Investors are cautioned not to place undue reliance on
these forward-looking statements. Such statements may be identified by words such as "expects," "anticipates," "intends," "projects,"
"estimates," "plans," "may increase," "may fluctuate" and similar expressions or future or conditional verbs such as "will," "should," "would,"
"may" and "could."

You should understand that forward-looking statements are not guarantees of performance or results and are preliminary in nature. You
should consider the areas of risk described under the heading "Cautionary Note Regarding Forward-Looking Statements" and "Risk
Factors" in our periodic reports filed with the U.S. Securities and Exchange Commission, including our most recent Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q, in connection with any forward-looking statements that may be made by us or our
businesses generally. Such periodic reports are available in the "Investors" section of our website at http://www.phh.com and are also
available at http://www.sec.gov. Except for our ongoing obligations to disclose material information under the federal securities laws,
applicable stock exchange listing standards and unless otherwise required by law, we undertake no obligation to release publicly any
updates or revisions to any forward-looking statements or to report the occurrence or non-occurrence of anticipated or unanticipated
events.

Basis of Presentation of Financial Data
Unless noted otherwise in this presentation, all reported financial data is being presented as of the period ended December 31, 2011.

Non-GAAP Financial Measures
Core earnings (loss) (pre-tax and after-tax), core earnings (loss) per share, tangible book value and tangible book value per share are
financial measures that are not in accordance with GAAP. See Non-GAAP Financial Measures Disclosures beginning on slide 18 for
reconciliations of these measures to the most directly comparable GAAP financial measures and other disclosures as required by
Regulation G.
Important Disclosures

PHH An Attractive Investment Opportunity
Leading player in mortgage outsourcing
Long-term established relationships with exclusivity
in Mortgage franchise platforms
Fleet vendor network, scale and technology create
high barriers to entry
Limited credit risk and strong underwriting culture
Capitalized servicing portfolio 85% agency product,
over 52% 2009 and later vintage
Diversified Fleet lease portfolio with high
concentration of investment grade customers
Recurring and growing Fleet earnings largely cash
Servicing portfolio generates cash
Managing Mortgage Production for greater capital
efficiency
Operate Mortgage for positive net cash flow

Defensible Market
Position with Attractive
Growth Prospects

High Quality Assets
Business Model
Generates Strong
Cash Flow

2011 Performance
GAAP net loss of $127 million, $2.26 per share
Core Earnings (after-tax)* of $182 million, $3.23 per share

Unpaid principal balance (UPB) of capitalized mortgage servicing
portfolio up 9% to $147 billion at year-end 2011
Servicing portfolio delinquencies (excluding foreclosure and REO) of
3.29% continue to be stable and one of the lowest in the mortgage
industry at year-end 2011
Foreclosure and real estate owned only 1.85% of servicing portfolio at
year-end 2011
Fleet segment profit (pre-tax) of $75 million, a 19% increase over 2010
Tangible book value per share* of $24.56 at year-end 2011

*
See Non-GAAP Financial Measures in this presentation


Four Key Strategies to Create Shareholder Value
1. Disciplined growth in franchise platforms
Mortgage Private Label Services
Realogy relationship
Fleet Management business

2. Operational excellence

3. Unwavering commitment to customer service

4. In near term, liquidity, cash generation and deleveraging balance sheet


2012: A Transition Year
Liquidity actions may have a negative impact on 2012 earnings
- Reduction in cash usage for Correspondent
- Non-core asset sales

Focus on deleveraging the balance sheet
- Intend to repay 2012 and 2013 debt maturities in 2012
- Intend to seek multi-year extension of revolver

Beyond 2012, PHH should be:
- More profitable
- Less volatile
- Better capitalized


Strong Position to Retire 2012 and 2013 Debt
Maturities in 2012
Liquidity position at December 31, 2011:
Unrestricted cash and equivalents of $414 million
Revolving credit facility availability of $509 million
Liquidity enhanced by $250 million
convertible debt offering in January

Sufficient liquidity to retire 2012 corporate
maturities
$250 million of Convertible Notes due in April
$525 million unsecured revolving credit
facility expected to be extended and
available to February 2013
Intend to seek a multi-year extension after 2012 and
2013 maturities are addressed
Goal to deleverage to 3.0:1 unencumbered
asset coverage
202
250 250
421
350
8
100
0
100
200
300
400
500
600
700
800
900
1,000
2012 2013 2014 2015 2016 2017 &
Beyond
(
I
n

$
M
i
l
l
i
o
n
s
)

Unsecured Debt Maturities
As of 12/31/2011 Pro forma
Convertible Debt Unsecured Bonds
Revolver Borrowings Unsecured Bond Add-on

Intend to retire in 2012

PHH Overview
A Leading Provider of Mortgage and Fleet Management Services
Long-term track record of business process management excellence

Leading institutions view us as a trusted partner serving their
customers and employees

Scale and relationships create a defensible and expandable market
position

Market dynamics may drive additional opportunities to improve
profitability and increase market share

Company Profile
1
Source: Inside Mortgage Finance, Copyright 2011/12
Top 4 originator of retail
residential mortgages in the
United States 3Q11 YTD
1
Mortgage Origination revenue
consists of fees from mortgage
loan origination services and the
origination and sale of mortgage
loans into the secondary market
Flexibility to partially regulate
current cash investment in future
cash flow generation

Investment in Future Cash Flow
Generation

Mortgage Origination
"One stop provider of Fleet
Management services with
approximately 570,000 vehicles
under management in the U.S.
and Canada as of 12/31/11
Fleet Management revenue
consists of leasing revenue
related to operating and direct
financing leases and fees earned
by providing maintenance,
accident management and fuel
card services
Cash Flow Generator

Fleet Management
7
th
largest servicer of residential
mortgages in the United States as
of 12/31/11
1
Mortgage Servicing revenue
consists of fees from servicing
rights and subservicing
agreements earned by providing
various administrative services
(e.g., collecting loan payments)
Capitalized MSR valuation
subject to volatility due to interest
rates, shape of the yield curve
and other factors

Cash Flow Generator

Mortgage Servicing

Strategic Objectives for Mortgage
Disciplined growth in Private Label and Realogy channels
Operate business for positive net cash flow
Emphasize non-capital intensive growth opportunities
Fee-for-service originations
Sub-servicing
Improving critical business processes to mitigate origination defects
IWR scores 90+%
Incremental upside potential:
Actual prepayment speeds have been slower than modeled
150+% replenishment rate has historically offset runoff
Servicing cash flow should improve with rising interest rates
Foreclosure costs should decline with rising housing prices

Key Mortgage
Origination Sources
Description
More than 30 financial institution clients provide access to network of
more than 4,300 branches and 55,000 financial advisors
On-boarding new clients and continuing to expand and convert
pipeline of client prospects
Investment in relationship management and technology should enable
further penetration of existing clients
Regulatory and capital pressure on banks creates opportunity
Proprietary relationship gives us access to an estimated 1 of every 4
home purchase transactions
More than 6,500 real estate offices and 200,000 real estate agents
Adding loan officers to significantly increase capture rates
Well-positioned for eventual resurgence in the purchase market
Private Label
(Franchise Channel)
Real Estate (Realogy JV)
(Franchise Channel)
Key Mortgage Origination Sources
Acquire loans through a network of high quality correspondents,
maintaining rigorous underwriting standards
Focus on Credit Unions and small community banks
Correspondent Lending
(Opportunistic Channel)

Unpaid principal balance (UPB) of capitalized servicing portfolio has steadily grown
- Capitalized servicing portfolio grew 9% or $12.3B to $147.1B in 2011
Weighted average interest rate
1
decreased to 4.9%, enhancing long-term portfolio value
MSR asset valued at 82 bps of capitalized UPB at year-end 2011
Servicing fees of 31 bps in 4Q11
Disciplined Growth in Mortgage Servicing Portfolio
1
On capitalized portfolio only
Wtd. Avg.
Int. Rate
1
129.1 127.7 128.5 130.1 131.9 134.8
141.1 142.4 144.3 147.1
20.7 23.8 24.6 25.9
27.5
31.3
29.6 31.3
33.8
35.3
149.8 151.5 153.1
156.0
159.4
166.1
170.7
173.7
178.1
182.4
$0
$50
$100
$150
$200
2008
5.9%
2009
5.5%
2010 Q1
5.5%
2010 Q2
5.4%
2010 Q3
5.3%
2010 Q4
5.2%
2011 Q1
5.1%
2011 Q2
5.0%
2011 Q3
4.9%
2011 Q4
4.9%
(
I
n

$
B
i
l
l
i
o
n
s
)

PHH Servicing Portfolio
Capitalized Servicing Portfolio Subserviced Loans & Loans in Warehouse

Low Delinquency Rates Relative to Peers
Consistently outperformed industry in delinquency performance
Total Delinquencies as of 9/30/11

Capitalized Servicing Portfolio Total Delinquency Compared to Industry
13.54%
11.52%
8.37%
7.63%
4.80%
10.70%
0%
4%
8%
12%
16%
Bank of
America
Chase Citi Wells
Fargo
PHH Larger
Servicer
Index
Source: PHH data as of 9/30/11; Industry data as of 10/31/11 from McDash/LPS
0%
2%
4%
6%
8%
10%
12%
14%
16%
2004 2005 2006 2007 2008 2009 2010 2011 All
Years
PHH Industry
(Excludes FC and REO)

Year of Origination
Source: Inside Mortgage Finance 11/25/2011; PHH rate based on UPB

Strategic Objectives for Fleet Management
Continue earnings momentum
Leverage franchise to expand customer base
Emphasis on services growth
Expand vehicle remarketing capabilities
Further penetrate existing clients for incremental fee-based services
Continuous technology innovation and improvement
100% subscription to full service suite
Driver and client satisfaction at 90+%
Grow truck lease syndications


GE
25%
ARI
20%

16%
Leaseplan
12%
Wheels
10%
Enterprise
8%
Donlen (Hertz)
5%
Others
4%
Fleet Management Services
Fully-integrated provider of vehicle leasing and fleet
management services
Mission-critical component of many of our clients' operations
Diversified lease portfolio of industry leader lessees
Nearly one-third of Fortune 500 in client base
More than 50% of net investment in fleet leases to investment
grade lessees
No client represents more than 5% of portfolio
High barriers to entry
Vendor network difficult to replicate
Significant purchasing power
Technology tie-in with client operations
An innovation leader in technology for fleet industry
Recurring, fee-based revenue and cash flow streams
Minimal lease residual and credit risk

Approximately 97% of book value of leases comprised of "open-
end leases as of December 31, 2011
Charge-offs averaged less than 3 basis points per annum for
the last 10 years
"One Stop" Provider of FIeet Management Services U.S. Fleet Served Market Share (fleets>15 units)
1
1
Source: 2011 Automotive Fleet Fact Book reflecting data as of FYE 2010 for leased and
service only vehicles, excluding "unserved" market share
Selected Clients


Healthcare &
Pharmaceuticals
15%
Utilities: Electric
15%
Services:
Business
9%
Chemicals,
Plastics and
Rubber
9%
Beverage, Food
and Tobacco
8%
Energy: Oil & Gas
5%
Construction &
Building
5%
High Tech
Industries
4%
Capital
Equipment
4%
Services:
Consumer
4%
Other (16
Industries < 3.5%)
22%
Diversified and High Quality Fleet Lease Portfolio
U.S. Lease Portfolio Characteristics (as of 9/30/11)
Broad array of client industries
Predominance of vehicle types are mission critical for our customers
~ Utility/service vehicles comprise 82% of portfolio

1
As of 9/30/11, excludes FirstFleet lease book value of $93 million
Light Duty Trucks
53%
Cars
18%
Medium Duty
Trucks
13%
Heavy Duty
Trucks
7%
Equipment
4%
Trailers
3% Forklifts
2%
Top 200 U.S. Client Breakout by Industry Classification
1
U.S. Lease Distribution by Vehicle Type
1

Conclusion
Attractive investment opportunity
- High quality assets
- Strong cash flows
- Defensible market position
Solid fundamental trends
- New client additions
- Increasing volume with existing clients
- Recent wide Mortgage Production margins
Four key strategies to create shareholder value
1. Disciplined growth in franchise platforms
2. Operational excellence
3. Customer service
4. In near term, liquidity, cash generation and deleveraging
Strong position to retire 2012 & 2013 debt maturities

Core earnings (loss) pre-tax involves differences from Mortgage Services Segment profit (loss) and Income (loss) before income taxes
computed in accordance with GAAP. Core earnings (loss) (pre-tax) should be considered as supplementary to, and not as a substitute
for, Mortgage Services Segment profit (loss) and Income (loss) before income taxes attributable to PHH Corporation computed in
accordance with GAAP as a measure of the Company's financial performance.
Tangible book value and tangible book value per share involve differences from Total PHH Corporation stockholders' equity computed in
accordance with GAAP. Tangible book value and tangible book value per share should be considered as supplementary to, and not as a
substitute for, Total PHH Corporation stockholders' equity computed in accordance with GAAP as a measure of the Company's financial
position.
The Company believes that these Non-GAAP financial measures can be useful to investors because they provide a means by which
investors can evaluate the underlying key drivers and operating performance of the Company's business, exclusive of certain adjustments
and activities that investors may consider to be unrelated to or tend to obscure the underlying economic performance of the business for a
given period.
The Company also believes that any meaningful analysis of the Company's financial performance by investors requires an understanding
of the factors that drive the Company's underlying operating performance which can be obscured by significant unrealized changes in
value of the Company's mortgage servicing rights, as well as any gain or loss on derivatives that are intended to offset market-related fair
value adjustments on the Company's mortgage servicing rights, in a given period that are included in Segment profit (loss), segment net
revenue, Net income (loss) attributable to PHH Corporation and Basic earnings (loss) per share attributable to PHH Corporation in
accordance with GAAP.

Non-GAAP Financial Measures Disclosures

(continued)
Core earnings (loss) (pre-tax and after-tax) and core earnings (loss) per share

Core earnings (loss) (pre-tax and after-tax) and core earnings (loss) per share measure the Company's financial performance excluding unrealized
changes in fair value of the Company's mortgage servicing rights that are based upon projections of expected future cash flows and prepayments as
well as realized and unrealized changes in the fair value of derivatives that are intended to offset changes in the fair value of mortgage servicing
rights. The changes in fair value of mortgage servicing rights and related derivatives are highly sensitive to changes in interest rates and are
dependent upon the level of current and projected interest rates at the end of each reporting period.

Value lost from actual prepayments and recurring cash flows are recorded when actual cash payments or prepayments of the underlying loans are
received, and are included in core earnings based on the current fair value of the mortgage servicing rights at the time the payments are received.

The presentation of core earnings is designed to more closely align the timing of recognizing the actual value lost from prepayments in the mortgage
servicing segment with the associated value created through new originations in the mortgage production segment. The Company believes that it will
likely replenish most, if not all, realized value lost from changes in value from actual prepayments through new loan originations and actively manages
and monitors economic replenishment rates to measure its ability to continue to do so. Therefore, management does not believe the unrealized
change in value of the mortgage servicing rights is representative of the economic change in value of the business as a whole.

Core earnings metrics are used in managing the Company's mortgage business. The Company has also designed certain management incentives
based upon the achievement of core earnings targets, subject to potential adjustments that may be made at the discretion of the Human Capital and
Compensation Committee of the Company's Board of Directors.

Limitations on the use of Core Earnings

Since core earnings (loss) (pre-tax and after-tax) and core earnings (loss) per share measure the Company's financial performance excluding
unrealized changes in value of mortgage servicing rights, such measures may not appropriately reflect the rate of value lost on subsequent actual
payments or prepayments over time. As such, core earnings (loss) (pre-tax and after-tax) and core earnings (loss) per share may tend to overstate
operating results in a declining interest rate environment and understate operating results in a rising interest rate environment, absent the effect of any
offsetting gains or losses on derivatives that are intended to offset changes in fair value on the Company's mortgage servicing rights.


Tangible book value and Tangible book value per share

Tangible book value is a measure of Total PHH Corporation stockholders' equity computed in accordance with GAAP excluding the
value of goodwill and other intangible assets. Tangible book value per share is a measure of tangible book value, on a per share basis,
using the number of shares of outstanding PHH Corporation common stock as of the applicable measurement date. Certain of the
Company's debt agreements contain indebtedness-to-tangible net worth ratio covenants, and such ratios are calculated using a
measure of tangible net worth that is calculated on a basis similar to the Company's calculation of tangible book value. Accordingly, the
Company believes that tangible book value and tangible book value per share provide useful supplementary information to investors.

(continued)

2011 2010 2011 2010
21 $ 313 $ (202) $ 115 $
8 6 25 28
13 307 (227) 87
55 (287) 510 166
13 11 11 36
Net derivative loss related to MSRs 4 - 3 -
85 $ 31 $ 297 $ 289 $
13 $ 181 $ (127) $ 48 $
33 (170) 301 98
7 6 6 21
Net derivative loss related to MSRs 2 - 2 -
55 $ 17 $ 182 $ 167 $
0.22 $ 3.26 $ (2.26) $ 0.87 $
0.58 (3.06) 5.34 1.76
0.14 0.11 0.12 0.38
Net derivative gain related to MSRs 0.04 - 0.03 -
0.98 $ 0.31 $ 3.23 $ 3.01 $
Three Months
Ended December 31,
Year Ended
December 31,
Certain MSRs fair value adjustments:
Basic income per share attributable to PHH Corporation
- as reported
Market-related, net of taxes
(1)(4)
Credit-related, net of taxes
(2)(4)
Core earnings per share
Core earnings (after-tax)
Net income attributable to PHH Corporation - as
reported
Income before income taxes - as reported
Less: net income attributable to noncontrolling interest
Segment income
Market-related
(1)
Credit-related
(2)
Core earnings (pre-tax)
Market-related, net of taxes
(1)(3)
Credit-related, net of taxes
(2)(3)
Non-GAAP Financial Measures Reconciliation
1
Represents the Change in fair value of MSRs due to changes in market inputs and assumptions used in the valuation model.
2
Represents the Change in fair value of MSRs primarily due to changes in estimated portfolio delinquencies and foreclosures.
3
Incremental effective tax rate of 41% was applied to the MSRs fair value adjustments to arrive at the net of taxes amounts.
4
Basic weighted-average shares outstanding of 56.504 million and 55.699 million for the three months ended December 31, 2011 and 2010, respectively and 56.349 million
and 55.480 million for the years ended December 31, 2011 and 2010, respectively were used to calculate per share amounts.
($ in millions, except per share amounts)

As of December 31,
2011 2010
PHH Corporations stockholder's equity - as reported $ 1,442 $ 1,564
Goodwill (25) (25)
Intangible assets (33) (36)
Tangible Book Value $ 1,384 $ 1,503

Common shares issued and outstanding

56,361,155 55,699,218

Tangible book value per share $ 24.56 $ 26.98

($ in millions, except per share amounts)
Non-GAAP Financial Measures Reconciliation
Tangible Book Value

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