KBW Maintains Outperform on PHH

KBW is out with its report today on PHH PHH, maintaining Outperform. In a note to clients, KBW writes, "Given weak volumes and modest margin pressure, we expect continued weak mortgage banking revs in 2Q. The main driver of the QoQ improvement is an increase in interest rate lock commitments. We estimate $12.7 billion of closings for PHH, from $13.8 million in 1Q11 and a modest reduction in gain-on-sale margin. We forecast a GAAP EPS loss of $1.19 based on a negative MSR mark driven by lower interest rates." KBW maintains a $30 PT on PHH. Shares of PHH closed Tuesday at $20.22, down 2.08% from Friday's close.