It was admittedly a "kitchen sink" quarter in which every special charge, almost all of them related to the mortgage meltdown or subsequent foreclosure settlements, was dumped.
The first thing to point out is that the both the subprime mortgage boom and the subsequent crash are very much concentrated in the private market, especially the private label securitization channel (PLS) market.
The subsequent recession and surge in unemployment dinged the demand for many mortgage-related businesses and Realogy was not spared, seeing its cash flow plunge and relying on additional borrowing to stay afloat.