Mortgage

Ditech plots new path, launches wholesale lending channel

Follows increase in correspondent lending operation

When Ditech Mortgage Corp. relaunched in 2014, it laid out a three-pronged plan to establish itself back into the mortgage market. At the time, the Walter Investment Management Corp. subsidiary stated that it planned to launch direct consumer lending, retail lending and correspondent lending operations.

Since its re-emergence on the scene, Ditech has undergone several significant changes and deviated from its stated plan.

Ditech, once one of the biggest names in mortgage lending, was reformed from the assets from the GMACRescap estate, purchased by Walter Investment/Greentree Originations in November 2012.

Last year, Walter Investment merged Ditech Mortgage Corp. with another of its well-known subsidiaries, Green Tree Servicing, to form Ditech Financial and combine the company’s mortgage servicing and originations businesses.

And earlier this year, Ditech announced that it planned to exit its distributed retail lending channel on in early January. When it made the announcement, and shortly thereafter, the company said it planned to focus on its consumer direct and correspondent lending channels.

Now, the company is expanding its business lines again, but not back into retail. Rather, Ditech announced Tuesday that it is launching a wholesale lending channel.

The company said that the expansion in wholesale lending is a “natural progression” as it expands its business lending division.

“We have the infrastructure, the products and, importantly, the experience to make an impact with mortgage brokers,” said John Davis, senior vice president of business lending at Ditech. “Combined with our competitive pricing and highly personalized client service supported by technology, we expect that Ditech will be an exceptional choice for brokers looking to close more loans.”

According to the company, it is already begun accepting broker applications.

The company also said that brokers doing business through Ditech’s wholesale channel will have access to a “variety of products, automated notifications, training, and custom reporting,” among other product and service offerings.

“Launching a wholesale channel is an important milestone for the company,” said David Schneider, president of Ditech. “With the success of our correspondent lending division, this was a logical next step for us to continue expanding our market presence.”

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