Ditech Financial LLC (rebranded from “ditech Mortgage” and "Green Tree Servicing" in 2015) was a provider of home loan, loan servicing and refinance products to consumers and institutional partners in the U.S.

In May 2014, Ditech announced its re-entry to the national housing market after it “disappeared” from the marketplace for five years during the subprime mortgage crisis in the late 2000s. It also announced a corporate re-branding with its servicing affiliate, Green Tree Servicing, which took place in 2015.

History

1995–2000

In 1995, John Paul Reddam founded Ditech Funding Corporation in Costa Mesa, California. The company's name was derived from the phrase “direct technology.” Ditech became one of the first lenders to offer mortgages to the public online and via a toll-free number. GMAC Mortgage renamed DiTech “ditech.com.”

Ditech pioneered 125 percent loans that allowed mortgage loan applicants to borrow more than properties were worth. The loans were also low-documentation mortgages, or stated income loans, and many borrowers falsified their incomes.

Powers introduced "People Are Smart," an advertising campaign that leveraged GMAC's reputation as a responsible lender and stressed the importance of making prudent decisions based on expert advice provided by ditech.com loan consultants.

In February 2010, GMAC relocated ditech.com offices from Costa Mesa to Fort Washington, PA. In May 2010, GMAC changed its name to Ally Financial.

In 2012, during the mortgage crisis, Ally took its residential lending unit into bankruptcy in order to pay back the U.S. Treasury following its acceptance of bailout funds. In November 2012, Ditech was formed from assets of the estate of GMAC ResCap during the bankruptcy proceeding.

In March 2014, the company resumed originating loans using the Ditech name.

Lending

Products

Ditech offered a range of home loan and refinance options. Home loan options include fixed rate, adjustable rate and FHA loans. Refinancing options included fixed rate, adjustable rate and FHA loans, as well as special financing programs such as HARP with expanded loan-to-value limits for qualified applicants. The company will no longer provide nonprime mortgages.

Also in May 2014, Ditech announced new correspondent banking products and services including MyCommunityMortgage, FHA Program, Expanded LMPI, and Freddie Only.

Advertising

Ditech is well known for television commercials that aired during the 2000s. They featured a nefarious loan officer, played by actor Ron Michaelson, repeating the catchphrase "Lost another loan to Ditech" written by writer, producer and director Ken Roberts, who created the Ditech television and radio commercials from 1995 to 2007. In May 2007, the company introduced a new marketing campaign, adding the tagline "People Are Smart" and including the signature line Home financing by GMAC to further help distinguish the Ditech brand from direct-to-consumer lenders of questionable repute. Ditech had immensely high unaided brand awareness and customer satisfaction, but many people mistakenly thought Ditech was a subprime lender.

On September 11, 2001, in the U.S., a Ditech commercial was airing on the CNN television channel when it was interrupted for an announcement that a plane had struck one of Twin Towers of the World Trade Center in New York City. This would begin CNN's ongoing live coverage of the September 11 attacks.

Ditech held a sponsorship in the NASCAR Nextel Cup Series from 2004 to 2007, prominently appearing on the #25 Chevrolet driven by Brian Vickers. The company held sponsorships on Hendrick's part-time #44 car, as well as the #87 car on Busch Series level. DiTech also sponsored Kevin Harvick for Stewart–Haas Racing from 2015 to 2016. Harvick would win at New Hampshire with DiTech on his Chevrolet SS.

Bankruptcy

In February 2019, Ditech filed for bankruptcy for the second time in as many years. Later that year, the company's forward mortgage servicing and originations business Ditech Financial LLC was acquired by New Residential Investment Corp. and their reverse mortgage business, Reverse Mortgage Solutions Inc., was acquired by Mortgage Assets Management LLC.

References

  • Company Website