Understanding the Merger of Greentree and Ditech Financial

Greentree and Ditech Financial merged to create a leading mortgage servicing company. This merger was a significant development in the mortgage industry.

The combined entity, Ditech Financial, LLC, was formed to provide a more comprehensive range of mortgage products and services to its customers.

The merger allowed Greentree to expand its offerings and better serve its customers by leveraging Ditech's resources and expertise.

Intriguing read: Ditech Financial

Green Tree Servicing is merging with Ditech Mortgage Corp., a move that's expected to take place on August 31st.

The merger is a result of the companies being owned by Walter Investment Management Corp., the parent company of Ditech. Ditech was acquired by Walter Investment Management from Ally Financial in March 2013.

The merged company will be called Ditech Financial LLC, with the goal of driving efficiencies and cost savings through the reduction of duplicative functions and cost structures.

Walter Investment Management expects to realize significant cost savings by combining the two companies' operations. This is a common outcome of mergers and acquisitions, where companies can eliminate redundant processes and streamline their operations.

Green Tree made headlines in April when it was ordered to pay $48 million in borrower restitution and $15 million in penalties to settle allegations of servicing failures between 2010 and 2014.

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Ditech Financial LLC was formed after Green Tree Servicing merged with Ditech Mortgage Corp on August 31, 2015.

The merger was expected to take place on August 31, 2015, and both companies were owned by Walter Investment Management Corp.

Ditech Financial LLC is the full legal name of the merged company.

The company is expected to realize significant cost savings by combining the two companies' operations.

Ditech Financial LLC was previously known as Green Tree Servicing, which 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.

The regulators alleged that Green Tree failed to honor modifications for loans transferred from other servicers.

Ditech Financial LLC has ceased its operations and no longer services any loans.

Borrowers who had their loans transferred to new servicing companies received written notifications regarding these changes.

Here are some key facts about Ditech Financial LLC:

Ditech Financial LLC was formed after Green Tree Servicing merged with Ditech Mortgage Corp. on August 31, 2015.

The merged company was originally known as Green Tree Servicing for regulatory and licensing reasons, but resumed using the Ditech name in March 2014.

Ditech Financial LLC is a subsidiary of Walter Investment Management Corp., which acquired Ditech from Ally Financial in March 2013.

The company was headquartered in Saint Paul, Minnesota, and specialized in providing comprehensive loan servicing solutions to the residential mortgage sector.

Ditech offered a range of services including loan origination, servicing, and modification, catering to both conventional and government-backed loans.

The company utilized advanced technology platforms to streamline operations, enhance customer experience, and ensure compliance with industry regulations.

Ditech had a diverse portfolio of loans for homeowners across the United States, with a total principal balance of approximately $9.6 billion in one portfolio of residential mortgage servicing rights acquired from Ocwen Corp.

Here are some key facts about Ditech Financial LLC:

Ditech Financial LLC ceased its operations and no longer services any loans, with borrowers who had their loans transferred to new servicing companies receiving written notifications.