Declining volume and further consolidation in the mortgage market may not be a prescription for success for many companies, but officials at Cendant Mortgage say the industry outlook fits perfectly with their business model. Cendant Mortgage is expected to be formally spun off from its parent in early 2005 and it will be coupled with another major Cendant outsourcing operation: its vehicle fleet management business. The new company will operate as PHH Corp., and be…