An executive shake-up is underway at ""PHH Corp."":www.phh.com/ The company's president and CEO, Jerome Selitto, recently announced his resignation, and simultaneously, PHH moved to appoint Glen Messina to the position.[IMAGE]
Messina, who acted as PHH's chief operating officer since July 20ll, previously served as the chief financial officer and CEO for the mortgage division of ""General Electric Co."":www.ge.com/ The[COLUMN_BREAK]
personnel swap follows negative ratings and estimates for PHH; the company's stock has dropped by 25 percent during the past month and is down 45 percent from numbers seen six months ago.
""Standard & Poor's"":www.standardandpoors.com/ downgraded PHH's senior debt to BB- from its BB+ rating, citing the company's ability to repay debts that are due in March of next year. Additionally, ""FBR Capital Markets"":www.fbr.com/ reduced its stock estimate for PHH from $24 to $20, though FBR added in its evaluation that it did not consider PHH at risk of insolvency.
According to numbers on record as of September 30, 2011, PHH reported losses of $148 million during the third-quarter, and company revenue for the period fell to $384 million off of $572 million. PHH's sharp declines were attributed to a poor fair value adjustment of the company's mortgage servicing sector.
Before his departure, Selitto had performed as PHH's president and CEO since October of 2009. Selitto has previously operated as the executive vice president of the lender division for ""Ellie Mae, Inc"":www.elliemae.com/.