Ditech Mortgage Is Back: Party Like It’s 1995

May 22, 2014 38 Comments »
Ditech Mortgage Is Back: Party Like It’s 1995

Soon you might be seeing advertisements from a brand new mortgage lender. Or rather, one that used to be a huge player, which subsequently disappeared and then rose from the ashes.

I’m referring to Ditech Mortgage Corp., known affectionately as “ditech.” Yep, they’re back, just in time to take part in the weakest origination year since 2000.

For the record, their name was formed by combining “Direct” and “Technology,” and it’s lowercase because they are smaller than their uppercase Customers.

Now a little history – the company was established back in 1995, based out of Costa Mesa, California where it ran somewhat successfully until it was eventually shuttered in 2010.

Back in the 90s, you may recall the wacky commercials that featured the famous tagline uttered by a dismayed loan officer: “Lost another loan to ditech!”

Since then, a lot has changed, namely the ownership of the company. They were purchased by GMAC Mortgage in 1998, and then acquired by Cerberus Capital Management, before later being purchased by Walter Investment Management Company in 2013.

Return of the ditech

Last week, the company announced that it was back in the mortgage game. It just couldn’t stay away, no matter how hard it tried.

However, now they’re headquartered in Fort Washington, Pennsylvania (where sister company Green Tree Originations is also located), with aspirations to take over the mortgage world once more.

Their approach is three-pronged:

  • Direct-to-consumer lending via their website and 1-800-number
  • Retail lending via roughly 200 loan specialists nationwide
  • Correspondent lending with 600+ partners

In other words, you’ll be able to get a loan with them directly over the phone or on their website, in person with a loan specialist, or via other lenders that resell their loan products through the correspondent channel.

As far as loan offerings, you’ll be able to get an ARM, a fixed-rate loan, an FHA loan, or even a jumbo loan.

In the fixed mortgage department, you can get either a 30-year fixed or a 15-year fixed. They’re currently advertising 30-year fixed mortgages at 4.125% (4.188% APR) and 15-year fixed mortgages at 3.125% (3.234% APR). Check out the pros and cons.

They even claim to offer 8-year fixed mortgages if traditional isn’t your thing, along with other terms in between, similar to the YOURgage.

ARMs come in three flavors, including 5/1, 7/1, and 10/1, all of which are hybrids. They’re currently advertising a 5/1 ARM at 2.75% (2.798% APR).

They also offer FHA loans, HARP loans, and jumbo mortgages with loan amounts of up to $3 million ($1.2 million for first-time home buyers).

And they’re currently advertising a rate of 4.00% (4.062% APR) for a jumbo 30-year fixed. By the way, these rates require 720 credit scores and low LTV ratios like 60-75% max.

What Makes ditech Different?

Aside from their lowercase name, they’ve got a few unique qualities. For one, they are an established brand with a lot of support behind them, so they can originate loans with few agency overlays.

That means you’ll be able to take advantage of more aggressive and flexible underwriting guidelines that offer banks and lenders might not be willing to offer.

They also offer the Fannie Mae MyCommunityMortgage®, the FHA’s $100 down payment loan program, expanded lender-paid mortgage insurance, and the “Freddie Only” program, which allows them to accept LP (Loan Prospector) findings.

As far as the 125% loans go, it might be a while before they reintroduce those again…

If you happen to be a correspondent lender, you’ll have the ability to price, lock and deliver individual loans via the ditech website.

All in all, it looks like what will set them apart is their size/backing/familiar name.  Most people will remember them and that should be enough to give them an edge.

I’d like to see a little bit more technology from them, given it’s in their name, but they’ve made no mention of being able to submit documents online and/or track the status of a loan online. That would be a nice touch.

Lastly, just to get this straight, three major lenders (and many smaller ones) went down during the recent housing crisis, including Countrywide, IndyMac, and GMAC.

Today, they’ve morphed into Bank of America/PennyMac, OneWest Bank, and ditech, respectively.  It’ll be interesting to see what they become this time around as the mortgage market continues to reinvent itself.

Update: Ditech now offers mortgages with just 3% down via the new Fannie Mae 97 program. Additionally, they recently launched a wholesale lending channel and are now accepting applications from mortgage brokers.


38 Comments

  1. james doetsch September 22, 2017 at 11:42 am - Reply

    I would like to join a lawsuit. I am sick of the harassment and aggressive collection tactics.

  2. Vernice Chapman May 22, 2017 at 5:30 pm - Reply

    Ditech kept me in a loan modification for over 18 months, finally I stopped responding to the request for additional information, they have filed a Notice of Default, forcing me to
    contact a lawyer and file for Bankruptcy. This really pissed me off, I will attempt to contact and file a complaint with the Consumer Financial Protection Bureau against them, not sure if it will help. I would like to join a Class Action Law Suit against them, any information on getting started?

  3. Ted December 16, 2016 at 12:59 pm - Reply

    Absolute worst company I have ever dealt with – The so called mortgage company scammed me out of $450. They sent an appraiser to my house that low balled my value to make sure I had to pay mortgage insurance – turned out he was off by $25,000. After a little research I found out the appraiser was convicted of fraud in another state. The sales manger and loan specialist will not answer my calls or emails. They lowered my rate but my monthly payment went up and no one could explain why!!!

  4. floyd wiggins jr November 25, 2016 at 8:00 pm - Reply

    i have been with ditech almost 12 months.also was with green tree prior to this.my monthly payment has increase twice in six months.i do have a fixed 30 year mortgage.a problem area is with escrow account and posting my payment.i must keep fighting ditech they are truly bad for the consumer.

  5. Cherie Wilkinson November 15, 2016 at 10:20 am - Reply

    For those living in Texas, I just spoke with the Press Office in Austin to try to get the news stations to bring this to light so we can collect enough people to file a class-action lawsuit. She advised to file our complaints first with the Consumer Complaints and that she would be more than happy to pursue this issue for us. You can call Consumer Complaints at (512)463-2185.

    For those not in Texas, contact your state’s Consumer Complaints (I would advise you do what I did, and go straight to the Press Office), file your complaint and ask that they combine this effort with all the states that are having issues with ditech. Let’s bring them down, folks!

  6. Mary Barcinas October 30, 2016 at 5:13 am - Reply

    DO NOT USE DITECH for any reason. I am a homeowner & have had several mortgages with several companies. DITECH IS THE WORST! I just had to file a complaint with CONSUMER FINANCIAL PROTECTION BUREAU to hopefully HELP ME DEAL WITH DITECH & there VERY SHADY tactics & extremely POOR CUSTOMER SERVICE. Ditech/GreenTree have annually screwed my account up without correction for too many years to count!! I have spend ENDLESS hours to NO AVAIL. All other reasoning & work with them has failed…. WISH ME LUCK!!

  7. Bill Smith September 14, 2016 at 12:01 am - Reply

    I have had a lot of trouble with Ditech also. Just noticed my last two mortgage payments / bank withdrawals by Ditech werw approximately $350 over the authorized amount, $700 total. Also in the past year had numerous problems with late payment charges. All this started when the loan went from Greentree to Ditech. Looks like I have to start with the Better Business Bureau and go from there. As so many of these reviews have pointed out so many problems, I also have had to fight with Representatives on the phone to get problems fixed. At this point, I would absolutely tell everyone to NEVER DEAL WITH DITECH. Good luck to all who are dealing with these crooks. Food for thought, this also demonstrates why you need to think twice about people that say insurance will be cheaper if they can operate across state lines. With that type of arrangement it becomes harder to make them responsible to the consumer. I believed 25 years ago when they began this open market in selling home mortgages that it would be nothing but disaster. Time has proven that to be the truth. But you’ve always got to fight the Wall Street Financial Boys and they’ve always got the Silver Tongue for how wonderful it’s all going to be. DIE DITECH ! ! !

  8. ninja July 18, 2016 at 8:16 pm - Reply

    I would do everything in my power to win against Ditech. I am planning to go all the way to the Supreme Court if necessary. I am fighting against them in Court system at the moment. I do have strong hard evidences against them. I will start exposing them to the public. Their lawyers are crook, extremely dishonest. Pay attention to my claim; I do not owe them any money, am not on the loan, am on the deed but they want to steal my home. How can manage that ??? Easy..Producing fake documents. I do have strong evidences. One day I will have the great opportunity to share with everyone in United States.

  9. Melissa Robbins June 27, 2016 at 12:07 pm - Reply

    Stay clear of Ditech if you can. Our mortgage was sold to them and they have still not paid our taxes out of our Escrow account, show no accountability in their customer service, and have consistently delayed and misinformed us. This is a terrible company and we have filed a complaint with the AG, but feel hopeless re them servicing our loan over time. I wish we had to agree to a sale of our mortgage – rather then it being done and being informed after the fact.

  10. Jeff June 27, 2016 at 10:32 am - Reply

    This is the worst company ever. They are impossible to work with. For a month it was impossible to make a payment online because their piece of crap website was down for repairs. When GreenTree became DiTech, our original payment of once every two weeks flipped back to once a month. To make it even more difficult, you need to be a month ahead in mortgage payments to qualify, when we paid a month in advance, they misapplied it to the escrow account, which by the way, they also screwed up. They send you mail reporting you delinquent and then when you call, they know nothing about it. This company is a piece of crap, this is one predatory outfit I want out of my financial life.

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