Matthew Speakman on what’s driving homebuyer demand

Zillow Economist Speakman explains what Zillow’s recent report on homebuyer demand tell us about the current state of the housing market.

Record low mortgage rates hold steady at 2.72%

This is the second week in a row rates have sat at the lowest recorded level in the survey’s near 50-year history.

What Yellen as Treasury Secretary would mean for housing

Experts weigh in on former Fed Chair’s possible impact on GSE reform and how she could jumpstart the economy.

Building the one-touch digital mortgage

As Katherine Campbell drives toward a one-touch mortgage, she’s taking time to share what she has learned along the way.

Mortgage

Ditech sells Reverse Mortgage Solutions to Mortgage Assets Management

Struggling nonbank completes sale of reverse mortgage business

When the federal judge overseeing the bankruptcy of Ditech Holding approved the struggling nonbank’s sale of its forward and reverse mortgage businesses to New Residential Investment and Mortgage Assets Management, it was only a matter of time until those deals were completed.

As it turns out, that “matter of time” ended up being only a few days.

Earlier this year, Ditech agreed to sell its forward mortgage originations and servicing businesses to New Residential and the stock and assets of its reverse mortgage business, Reverse Mortgage Solutions, to Mortgage Assets Management.

Late last week, the United States Bankruptcy Court for the Southern District of New York approved the sale of both companies, and Monday, Ditech completed the sale of Reverse Mortgage Solutions to Mortgage Assets Management.

Under the terms of the agreement, Mortgage Assets acquired “certain stock and assets” associated with Reverse Mortgage Solutions, and agreed to maintain the current operations of RMS as a wholly-owned subsidiary.

According to Ditech, RMS is “continuing to serve its customers in the ordinary course.”

Ditech also said that it expects to close on the sale of its forward mortgage business to New Residential “in the coming days.”

Thomas Marano, Ditech Holding’s chairman of the board and CEO, said the company is “pleased” to complete the sale.

“We are pleased to complete this sale, which we believe maximizes the value of the RMS business and ensures that customers will continue to receive the comprehensive suite of services they expect from RMS,” Marano said. “We have worked closely with the team at Mortgage Assets to ensure a smooth transition for customers. I would like to thank the employees of RMS for their contributions and we wish them well as part of Mortgage Assets.”

The sale comes after years of financial trouble for Ditech, the nonbank formerly known as Walter Investment Management.

The company suffered years of financial losses, culminating in the company filing for bankruptcy. The company then completed a restructuring plan that eliminated $800 million in corporate debt, changed its name, and emerged from bankruptcy a year later.

But that wasn’t enough to salvage the company, as Ditech filed for Chapter 11 again just 14 months later. This time, it included its subsidiaries, Ditech Financial and Reverse Mortgage Solutions, in its restructuring plan.

And now, the company has sold off one of its main subsidiaries and will complete the sale of the other in a matter of days.

Most Popular Articles

Fannie Mae, Freddie Mac conforming loan limits increase for 2021

The Federal Housing Finance Agency announced new conforming loan limits for Fannie Mae and Freddie Mac for 2021. The increase is up 7.5% from 2020’s limit of $510,400 and marks the fifth consecutive year of increases.

Nov 24, 2020 By

Latest Articles

Compass eyes IPO in 2021: report

Venture-backed residential brokerage Compass has hired bookrunners ahead of an independent public offering in 2021, according to a new report.

Nov 25, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please