Green Tree Servicing Merging With Ditech Mortgage

Posted by Patrick Barnard on August 19, 2015 1 Comment
Categories : Mortgage Servicing

Green Tree Servicing is merging with Ditech Mortgage Corp., the companies recently announced.

The merger is expected take place on Aug. 31.

Both companies are owned by Walter Investment Management Corp. Ditech was acquired by Walter Investment Management from Ally Financial, formerly GMAC-ResCap, in March 2013. Following the acquisition, Ditech operated under the name Green Tree Servicing for regulatory and licensing reasons. DT Holdings, Ditech's parent company, is a subsidiary of Walter Investment Management. In March 2014, the company resumed originating loans using the Ditech name.

According to Green Tree's announcement, the full legal name of the merged company will be Ditech Financial LLC.

Walter Investment Management first announced the merger in February.

‘By consolidating our Green Tree and Ditech brands under [one name] and enhancing focus on the use of technology, we will drive efficiencies through the reduction of duplicative functions and cost structures and become a stronger, more unified end-to-end mortgage company,’ Mark J. O'Brien, chairman and CEO of Walter Investment Management, said in a statement as part of the company's fourth quarter 2014 earnings report. ‘As a diversified mortgage operation consolidated under one name, we will be well positioned to take advantage of sector opportunities and leverage our core capabilities to provide high-quality service to our consumers and clients and deliver value to our shareholders.’

Walter Investment says it expects to realize significant cost savings by combining the two companies' operations.

Green Tree made news in April when the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission ordered the company to pay $48 million in borrower restitution and $15 million in penalties to settle allegations of servicing failures that occurred from 2010 to 2014.

Specifically, the regulators alleged that Green Tree failed to honor modifications for loans transferred from other servicers, demanded payments before providing loss mitigation options, delayed decisions on short sales, and harassed and threatened overdue borrowers.

Just a month earlier, in March, it was announced that Green Tree was acquiring a portfolio of residential mortgage servicing rights consisting of about 55,500 loans from Ocwen Corp.

The loans, owned by Freddie Mac, had a total principal balance of approximately $9.6 billion.

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  1. I need your input. I had a property that was destroyed in the Dec. 26th Tornado and the Safeco Insurance totaled it. I ask them to send my two separate checks, one for the mortgage payoff
    and other for a 1033 Tax Deferred Exchange. I received the checks with in 2 weeks. I mail the payoff check to ditech mortgage Jan.8. By the way this is a 30 day payoff. After a week I called
    to see if they had received it. They said know give it a few days a call back. About 3 days later I called back ( this is 2 weeks in) and they said they have the check. So about 5 days later I called
    to check on the progress and they tell me we do not have the check, we never received it. But you told me you had it 5 days ago. So anyway, feeling uncomfortable with the companies business
    practice or lack thereof. I called Safeco to have them stop payment and re-issue another payoff check. The next day I received the first payoff check back from ditech after they tell me they did
    not have it. So I received the 2nd check and mailed it to ditech payoff department on 2/3/16. So I waited about 5 days and call ditech, no check received. Give it a few days they say, so I ask them
    if anything is happening with my credit because the left hand does not seem to know what the right hand is doing. I tell them I am a real estate investor and I do not credit issues. After a few more
    days I call back, and after digging through the departments I find someone that discovers they allocated the funds to the wrong property. I have 2 properties with them. This is about 6 weeks into
    it. This person was in the credit department so once again I ask about my credit situation and I was told nothing was going out to affect my credit.Also during this whole process I found the check
    was going through the claims department. So I ask why was it being delayed in claims when I do not have insurance with them. They had no answer for me. So now the payoff department has to
    receive the check for the claims department, then process it. All together this took about 8 weeks. And when I checked my credit, they dinged me for late mortgage payment and my credit score
    dropped from 760 to 670. I can not get a loan with that low score and I am a Real Estate Investor. Not once dd
    any of the staff suggest that I make Mortgage payments during the payoff process.

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