Exhibit 10.3

SECOND AMENDMENT
 
SECOND AMENDMENT, dated as of November 2, 2007 (this “Amendment”), to the
Amended and Restated Competitive Advance and Revolving Credit Agreement, dated
as of January 6, 2006 (the “Credit Agreement”), among PHH Corporation, a
Maryland corporation (the “Borrower”), PHH Vehicle Management Services, Inc., a
Canadian corporation (the “Canadian Subsidiary Borrower”), Citicorp USA, Inc.,
as Syndication Agent, The Bank of Nova Scotia (the “Canadian Lender”) and
Wachovia Bank, National Association, as Co-Documentation Agents, and JPMorgan
Chase Bank, N.A., as Administrative Agent.
 
W I T N E S S E T H :

WHEREAS, the Borrower, the Lenders and the Administrative Agent are parties to
the Credit Agreement;
 
WHEREAS, the Borrower has requested that a certain provision of the Credit
Agreement be amended as set forth herein; and
 
WHEREAS, the Lenders are willing to agree to such amendment on the terms set
forth herein;
 
NOW, THEREFORE, in consideration of the premises contained herein, the parties
hereto agree as follows:
 
1.           Defined Terms.  Unless otherwise defined herein, capitalized terms
shall have the meanings given to them in the Credit Agreement.
 
2.           Amendment to Section 6.1(i).  Section 6.1(i) of the Credit
Agreement is hereby amended by deleting therefrom the following: “, if the
aggregate principal amount of all such Indebtedness does not exceed
$1,150,000,000”.
 
3.           Amendment Fee. The Borrower shall pay to Administrative Agent for
the account of each Lender that executes and delivers a counterpart to this
Amendment on or before 3:00 P.M. EST November 2, 2007, an amendment fee equal to
0.03% of the outstanding principal amount of such Lender’s Revolving
Commitments.
 
4.           Representations and Warranties.  On and as of the date hereof, the
Borrower hereby confirms, reaffirms and restates the representations and
warranties set forth in Section 3 of the Credit Agreement mutatismutandis,
except to the extent that such representations and warranties (i) are the
subject of that certain Waiver, dated as of December 21, 2006, to the Credit
Agreement or (ii) expressly relate to a specific earlier date in which case the
Borrower hereby confirms, reaffirms and restates such representations and
warranties as of such earlier date.
 
5.           Effectiveness of Amendment.  This Amendment shall become effective
as of the date the Administrative Agent shall have received counterparts of this
Amendment duly executed by the Borrower and the Required Lenders.
 
6.           Continuing Effect; No Other Amendments.  Except as expressly
provided herein, all of the terms and provisions of the Credit Agreement are and
shall remain in full force and effect.
 

--------------------------------------------------------------------------------

7.           Expenses.  The Borrower agrees to pay and reimburse the
Administrative Agent for all of its reasonable costs and out-of-pocket expenses
incurred in connection with the preparation and delivery of this Amendment,
including, without limitation, the reasonable fees and disbursements of counsel
to the Administrative Agent.
 
8.           Counterparts.  This Amendment may be executed in any number of
counterparts by the parties hereto (including by facsimile or electronic
transmission), each of which counterparts when so executed shall be an original,
but all the counterparts shall together constitute one and the same instrument.
 
9.           GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
 

[remainder of page intentionally left blank]

2

--------------------------------------------------------------------------------

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed as of the day and the year first above written.
 
PHH CORPORATION, as the Borrower

By:   /s/ Mark E.
Johnson                                                                
       Name: Mark E. Johnson
       Title:    Vice President and Treasurer

PHH VEHICLE MANAGEMENT SERVICES, INC., as the Canadian Borrower

By:   /s/ Mark E.
Johnson                                                                
 Name: Mark E. Johnson
 Title:    Vice President and Treasurer

JPMORGAN CHASE BANK, N.A., as Administrative Agent

By:  /s/John J. Coffey                                                      
Name: John J. Coffey
Title:   Managing Director

THE BANK OF NOVA SCOTIA, as the Canadian Lender

By:  /s/Todd Meller                                                      
Name: Todd Meller
Title:   Managing Director
 
 
 
 

--------------------------------------------------------------------------------

 
 
 
ABN AMRO Bank N.V.

By:    /s/ Andrew C.
Salerno                                                                           
Name: Andrew C. Salerno
Title:  Director

By:    /s/ Michael
DeMarco                                                                           
Name: Michael DeMarco
Title:  Vice President
 
 
 
 

--------------------------------------------------------------------------------

 
 

 
BANK OF COMMUNICATIONS CO., LTD.
NEW YORK BRANCH

By:    /s/ Shelby He
Name: Shelby He
Title: Deputy General Manager
 
 
 
 
 
 

--------------------------------------------------------------------------------

 
 
 
BARCLAYS BANK PLC

By:    /s/ Nicholas
Bell                                                                
Name: Nicholas Bell
Title:  Director
 
 
 
 

--------------------------------------------------------------------------------

 
 
 
CALYON NEW YORK BRANCH

By:    /s/ Walter Hay Buckley
Name: Walter Jay Buckley
Title: Managing Director

By:    /s/ Sebastian Rocco
Name: Sebastian Rocco
Title: Managing Director
 
 
 
 

--------------------------------------------------------------------------------

 
 

 
CIBC INC.

By:    /s/ Dominic J.
Sorresso                                                                           
Name:  Dominic J. Sorresso
Title: Executive Director

CIBC World Markets Corp.
Authorized Signatory
 
 
 
 

--------------------------------------------------------------------------------

 
 
 
 
CITIBANK, N.A.

By:    /s/ Thomas A.
Neville                                                                           
Name: Thomas A. Neville
Title: Attorney-in-Fact
 
 
 
 

--------------------------------------------------------------------------------

 
 
 
CITICORP USA, Inc.

By:    /s/ Andrew L.
Kreeger                                                                           
Name: Andrew L. Kreeger
Title: Vice President
 
 
 
 

--------------------------------------------------------------------------------

 
 
 
DEUTSCHE BANK AG NEW YORK BRANCH

By:    /s/ Richard
Herder                                                                           
Name: Richard Herder
Title: Managing Director

By:    /s/ Melissa
Curry                                                                
Name: Melissa Curry
Title: Vice President
 
 
 
 

--------------------------------------------------------------------------------

 

 
HSBC Bank (USA), N.A.

By:    /s/ Vince
Clark                                                                
Name: Vince Clark
Title: Senior Vice President
 
 
 
 
 

--------------------------------------------------------------------------------

 
 
 
Manufacturers & Traders Trust Company

By:    /s/ Laurel L.B. Magruder
Name: Laurel L.B. Magruder
Title:   Vice President
 
 
 
 

--------------------------------------------------------------------------------

 
 
MELLON BANK, N.A., as Lender

By:    /s/ Donald G. Cassidy, Jr.
Name: Donald G. Cassidy, Jr.
Title:  Senior Vice President
 
 
 
 

--------------------------------------------------------------------------------

 
 
 
 
MERRIL LYNCH BANK USA

By:    /s/ Louis
Alder                                                                           
Name: Louis Alder
Title:  Director
 
 
 
 

--------------------------------------------------------------------------------

 
 
 
 
THE NORTHERN TRUST COMPANY

By:    /s/ Peter J.
Hallan                                                                           
Name: Peter J. Hallan
Title: Vice President
 
 
 
 

--------------------------------------------------------------------------------

 
 
 
Royal Bank of Canada

By:    /s/ Howard
Lee                                                                
Name: Howard Lee
Title: Authorized Signatory
 
 
 
 
 

--------------------------------------------------------------------------------

 
 
 
THE ROYAL BANK OF SCOTLAND PLC

By:    /s/ Angela
Reilly                                                                
Name: Angela Reilly
Title: Managing Director
 
 
 
 
 

--------------------------------------------------------------------------------

 
 
 
UBS LOAN FINANCE LLC

By:    /s/ Irja R.
Otsa                                                                
Name: Irja R. Otsa
Title: Associate Director

By:    /s/ David B.
Julie                                                                           
Name: David B. Julie
Title: Associate Director
 
 
 
 

--------------------------------------------------------------------------------

 
 

 
Wachovia Bank, National Association

By:    /s/ Karin E.
Samuel                                                                           
Name: Karin E. Samuel
Title: Vice President

--------------------------------------------------------------------------------