Ditech
| Company type | Private company |
|---|---|
| Industry | Mortgage lending and servicing |
| Founded | 1 January 1995 in Costa Mesa, California, U.S. |
| Founder | J. Paul Reddam |
| Fate | Filed for bankruptcy (2019); forward mortgage operations acquired by New Residential Investment Corp.; reverse mortgage segment sold to Mortgage Assets Management LLC |
| Headquarters | Costa Mesa , United States |
Area served | United States |
| Products | Home loans, loan servicing, refinancing solutions (fixed-rate, adjustable-rate, FHA loans, HARP) |
| Parent | DT Holdings (subsidiary of Walter Investment Management Co. until 2019) |
| Website | www |
Ditech Financial LLC—formerly known as "ditech Mortgage" and "Green Tree Servicing" until its 2015 rebranding—was a U.S.-based organization specializing in home loans, loan servicing, and refinancing solutions for both consumers and institutional clients.
In May 2014, after a five-year hiatus triggered by the subprime mortgage crisis, Ditech announced its comeback to the national housing market. This relaunch involved a corporate rebranding initiative alongside its servicing partner, Green Tree Servicing, finalized in 2015.
1995–2000
Established in 1995 by entrepreneur J. Paul Reddam in Costa Mesa, California, Ditech Funding Corporation was among the first companies to offer mortgage lending through online platforms and toll-free phone lines. The company’s name, derived from “direct technology,” highlighted its innovative approach. By 1996, Ditech had expanded from operating in seven states to serving customers across 46 states, propelled by a vigorous marketing campaign featuring widely recognized national television commercials that enhanced brand recognition.
In 1999, GMAC (now Ally Financial), then a division of General Motors, purchased Ditech and rebranded it as “ditech.com.” Founder Reddam departed the company in 2000.
2005–2012
In 2005, Ditech became a business unit within Residential Capital, LLC ("ResCap"), managing mortgage subsidiaries under General Motors Corporation’s ownership. The company introduced 125 percent loans, allowing borrowers to obtain financing exceeding their property’s value, frequently using low-documentation or stated income loan products that often resulted in inaccurate income reporting.
Under CEO Powers, the "People Are Smart" marketing campaign capitalized on GMAC's established reputation to encourage responsible borrowing supported by expert guidance from ditech.com advisors. In February 2010, GMAC moved ditech.com’s operations from Costa Mesa to Fort Washington, PA. By May of that year, GMAC rebranded itself as Ally Financial.
During the mortgage crisis in 2012, Ally Financial placed its residential lending division into bankruptcy to repay funds received from the U.S. Treasury bailout. Subsequently, in November 2012, Ditech was reformed from the assets of GMAC ResCap’s bankruptcy estate as part of a strategic overhaul of its business structure and financial outlook.
In March 2013, Walter Investment Management Co. acquired Ditech from Ally Financial, previously known as GMAC ResCap. Following this acquisition, Ditech operated loan origination under Walter’s Green Tree Servicing brand due to regulatory and licensing obligations. DT Holdings, the parent company of Ditech, functions as a subsidiary within Walter Investment Management.
By March 2014, Ditech resumed originating loans under its own name, marking its return to the U.S. housing market after a five-year absence caused by the mortgage crisis. The company publicly announced this market re-entry in May 2014.
Corporate Re-brand
In March 2015, Ditech and Walter Investment’s affiliate Green Tree Servicing launched a co-branding initiative to unify their operations under the name "Ditech Financial, A Walter Company," integrating both loan origination and servicing activities into a single brand identity. This consolidation was completed by late 2015.
Products
Ditech offered a range of mortgage and refinancing solutions, including fixed-rate, adjustable-rate, and FHA loan options. Their refinancing products encompassed fixed, adjustable, and FHA loans, along with specialized programs like the Home Affordable Refinance Program (HARP), which provided increased loan-to-value ratios for eligible borrowers. The company ceased offering nonprime mortgage products.
Institutional partner strategy
In May 2014, Ditech initiated a co-branding and joint-venture program involving more than 600 institutional partners to provide mortgage and refinance loans. This approach included both direct-to-consumer and correspondent lending channels, enabling partners to set pricing, lock rates, and deliver loans through Ditech’s platform.
Furthermore, Ditech expanded its correspondent banking offerings with products such as MyCommunityMortgage and broadened FHA program options. By June 2014, the correspondent lending division concentrated on supporting community banks and credit unions by granting them access to Ditech’s technology infrastructure, underwriting capabilities, processing services, loan servicing, and marketing resources.
Advertising
Throughout the 2000s, Ditech achieved widespread brand recognition via television advertisements featuring actor Ron Michaelson with the memorable slogan "Lost another loan to Ditech," created by Ken Roberts who managed the company’s TV and radio advertising efforts from 1995 until 2007. In May 2007, Ditech introduced a fresh marketing campaign under the tagline "People Are Smart," incorporating the phrase Home financing by GMAC to distinguish its identity from other direct-to-consumer lenders. Despite enjoying strong unaided brand awareness and favorable customer feedback, the company was frequently misidentified as a subprime lender.
A notable moment in media history occurred when a Ditech commercial aired on CNN during the disruption of regular programming on September 11, 2001.
Ditech also invested in sports sponsorships to enhance its market presence, backing NASCAR teams from 2004 through 2007. The company’s branding appeared on the #25 Chevrolet driven by Brian Vickers and sponsored Hendrick Motorsports’ part-time #44 car as well as the #87 Busch Series vehicle. Between 2015 and 2016, Ditech sponsored Kevin Harvick of Stewart-Haas Racing, who achieved a victory at New Hampshire driving a Chevrolet SS adorned with Ditech branding, further solidifying the firm’s involvement in competitive sports marketing.
Bankruptcy
In February 2019, Ditech filed for bankruptcy protection for the second time within a two-year span. Subsequently that year, New Residential Investment Corp. acquired its forward mortgage servicing and origination operations under Ditech Financial LLC, while its reverse mortgage segment, Reverse Mortgage Solutions Inc., was sold to Mortgage Assets Management LLC.