KBW Maintains Core EPS Estimate On PHH

Given declining volumes and margin, “we expect weak mortgage banking revenues in 1Q,” KBW reports. “Inside Mortgage Finance reported $12 billion of volume for PHH Corporation PHH, down from $18.4 million in 4Q10,” KBW writes. “Our forecast incorporates a 15% reduction in the gain-on-sale margin. We forecast a 40% reduction in mortgage banking revenue. “However, this is offset by higher mortgage servicing income as prepayments slow. We maintain our core EPS estimate of $0.46.” PHH Corporation closed Monday at $21.26.