Ditech Mortgage Is Back: Party Like It’s 1995

May 22, 2014 35 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). Click here to compare 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.

35 Comments

  1. Ed Boyd May 23, 2014 at 2:25 pm -

    ditech… trying to figure out this version of ditech? The old ditech was part of GMAC in Fort Washington, PA. This version of ditech doesn’t mention GMAC but the address is Fort Washington PA also. However, when I checked the WA State NMLS recording one of its’ legal names is Security One!? …the reverse mortgage company. Then there is Greentree Mortgage, who is also associated with the Fort Washington people. These are all active companies but Security One is the real surprise.

  2. Colin Robertson May 23, 2014 at 5:36 pm -

    Ed,

    Walter Investment Management Corp. is the parent company of ditech now (and Green Tree) and they acquired Security One Lending back in early 2013, per their investor relations website. They’ve been busy!

  3. Kevin Johnson February 19, 2015 at 1:54 pm -

    Horrible company lied to me continuously throughout the loan process. I have taken out about 12-13 mortgages over my lifetime but this one takes the cake. Warning do not get involved you will regret it.

  4. C Dyer February 27, 2015 at 11:22 am -

    I have to say I agree with the Kevin Johnson above comment. We, too, have financed MANY home loans and this was to be a refi on a mortgage only 3 months old. The main contact person has been friendly, but the loan rep has been condescending to me, uncaring, unaccountable and busy with other obligations. The underwriting has been a nightmare because we were approved 3 months ago on the original loan for more than 2x the refi loan was supposed to be with Ditech. I would not recommend this company.

  5. Moonwalker Holly August 2, 2015 at 11:36 am -

    If they are a sister company of Green Tree, I am going to give a 3rd warning because I don’t want anyone to get stuck with this company. They are backwards and corrupt . Very evil company. They lie about how much you owe on taxes for their own personal gain for you escrow account. They lie about the cushioning amount that is allowed and place it higher than what it’s allowed to be without you knowing(legally mortgage companies can require “cushioning” but they can only go up to a certain amount).Their representatives are pushy, rude, and evil just like the company. Please DO NOT trust them for your lending needs. They WILL lie to get what they want, even if that means lying about the tax amount in your escrow account.
    I just don’t want anyone to suffer like me & my family has from them. Please don’t take this lightly & look up Green Tree and you’ll see literally thousands of compaints online and on the BBB. I do not trust them.

  6. D Wright August 16, 2015 at 10:53 am -

    Greentree is ISIS of the mortgage world. Nothing more than domestic financial terrorists.

  7. Steve September 4, 2015 at 2:38 am -

    I came here to research ditech as I just had a debit on my checking account from them that was not authorized by me, which resulted in an overdraft and bank fee.

    I then see a credit for the same amount (my usual mortgage payment), but I still am stuck with the overdraft fee.

    I have a Greentree mortgage, but this is the first that I’ve seen the ditech name associated with it. Ditech and I are not off to a good start.

  8. Steve Alva September 10, 2015 at 11:32 am -

    Ditech has merged with Green Tree which tells me nothing good can come from this merger. Green Tree is the ISIS of home mortgage companies; I’ve never missed a payment, and yet they send me statements saying I’m behind four months, and please remit $11,234.00 immediately. Turned them over to the State’s Attorney General’s Office and all three credit reporting outfits. Ditech, you’ve risen from the ashes only to be in a smouldering cinder with ISIS, oops, I mean Green Tree!

  9. Joy September 11, 2015 at 5:43 am -

    I was with Greentree Servicing and I am not suppose to be penalized for early payoff. Ditech is not applying the extra principal payment and I think it is illegal!!

  10. Maggie September 17, 2015 at 12:44 pm -

    I too am having a difficult time getting DiTech to apply my extra principal payment correctly. I’ve attached a letter to each extra payment with big bold red letters stating PRINCIPAL PAYMENT ONLY yet they continue applying it as a regular payment. Is there any legal recourse I can take?

  11. Colin Robertson September 17, 2015 at 3:59 pm -

    Maggie,

    Not sure about legality, but have you tried calling them and asking why they aren’t applying extra payments to principal? Where is the money being applied?

  12. Sarah September 29, 2015 at 3:46 pm -

    This company just took over my home loan from Green Tree and in one month’s time has demonstrated very questionable activity on my account. First they said I had an escrow surplus and sent me a check. 30 days later, they send me another letter stating my escrow account has a shortage of almost the exact same amount they sent me in a check because it was a surplus. Now, they want me to pay them that money and on top of that they want to up my mortgage about $35. This makes an increase of about $57. I have never been laet on a payment or had any issues with my home mortgages over the past few decades until my experience with Ditech. I just met them and already I HATE doing business with them. I do not trust them!!!

  13. jesse October 12, 2015 at 6:13 pm -

    To add a service fee on top of an MHA act they cannot do, there are strict guidelines to MHA that were closed prior to their take over, Simply do as I do, REFUSE to pay the extra unknown charge and when they foreclose join the bunch that is refusing also, keep your house, make some money in a lawsuit and send their CEOS to JAIL. It is about 50-60 $ a month that cannot be traced into any payment towards the house, its a scam payment.

  14. Norma Campbell November 5, 2015 at 1:56 am -

    I just recently was put with them,(sent from Greentree). Just as soon as the switch was done, they went up $23.00 on my payment. Claimed my Homeowner’s Insurance went up. I checked it out and it had not. That was a lie. I am absolutely sorry I got sent to these people. I hope I can find a better lender.

  15. Bob G. November 6, 2015 at 8:01 am -

    I have an affidavit from a Kindra Denny, claiming to be a Document Execution Specialist for DiTech. Ms. Denny resides in South Dakota. The notary is a S.D. notary. Does anyone know if DiTech (Green Tree) has offices in S.D. ?

  16. Remy December 1, 2015 at 6:58 am -

    I would urge everyone to contact the Consumer Financial Protection Bureau and file a complaint against Ditech. This company and the Federal Trade Commission were able to levy a fine on Green Tree for 48 Million dollars for mortgage failure. Ditech is just a reorganization of that old company. I was up to date with my mortgage until I paid early, now I am behind and facing forclosure. They have not applied all funds to my account, and they have not credited my account for the actual amounts that I paid. I suspect that they have altered my billing history, but I have no way to prove this. If everyone holds this company accountable, we can get our money back and our mortgage back on track. Go to this website http://www.consumerfinance.gov/ and file a complaint today.

  17. Ziggy December 4, 2015 at 4:04 pm -

    Comparing ditch to ISIS seriously? D Wright, you’re a complete tool.

  18. Don4366 December 17, 2015 at 4:59 pm -

    The Ditech website has the information you need to learn what payments were received and what is the status of your account. Recently, your mortgage documents were added, as was my own. If you are not familiar with RESPA federal requirements, you need to consult a Real Estate attorney and stop this ditech foolishness.

  19. Cheryl December 19, 2015 at 9:45 pm -

    DO NOT DEAL WITH DITECH! I have been going through an escrow nightmare for months. They refuse to acknowledge any documentation I have. I am so frustrated that I am ready to let them foreclose so I can solve the problems. The most ridiculous company I have ever dealt with.

  20. KateF77 February 4, 2016 at 2:53 pm -

    Just got a tax form for mortgage interest from ditech, although we never dealt with them. Thankfully it looks like it’s from our old loan with GreenTree, which we refinanced with another company last year. It’s always a little scary to get something like that from someone you’ve never heard of; it gets you thinking someone else took out a loan in your name. Not very professional though, is it? These big banks just keep getting bigger, and it’s sad for those of us old enough to remember small local banks.

  21. Colin Robertson February 4, 2016 at 5:34 pm -

    Kate,

    It’s definitely annoying having your mortgage transferred from bank to bank and having to keep up with all the tax forms.

  22. Robert dominguez February 22, 2016 at 9:01 pm -

    Anyone sue ditech successfully for anything?

  23. Rose Stewart March 6, 2016 at 9:10 am -

    Ditech (formerly Greentree) is making adjustments on my Fixed rate, Prepayment privilege account (Prepayment privilege means that my agreement allows me to pay off my loan early and without penalty). When making additional principal payments included with my regular monthly payment of Principal/interest/escrow; Ditech applies the additional principal and then makes an adjustment that increases the monthly interest payment for the next month. Which in-turn does not give me the correct amount of principal. They admit to making adjustments in my account along with sending me a copy of my Multi-state Fixed Rate Note. What????

  24. Rose Stewart March 6, 2016 at 9:30 am -

    TO EVERYONE: Please read the disclaimer on the ditech website terms of use before considering making an online account with them. They are financially binding their clients.
    The disclaimer reads in part,, “You (and not ditech) assume the entire cost of all necessary servicing, repair, or correction.” and It seems the site is available in the State of Minnesota only and material are not guaranteed to work in any other state.

  25. Rose Stewart March 6, 2016 at 9:32 am -

    And by the way, I absolutely did NOT sign up on their website.

  26. Carla RIFFEE April 14, 2016 at 6:04 am -

    I’m trying to figure off why it takes DITECH so long to cash my mortgage check , should have been cashed on 4/8/16 and they are still holding it , I called them and no call back , the rating I give them is 0/10 , very unhappy with them , I would not use them

  27. Lynn April 29, 2016 at 7:41 pm -

    Ditech, Green Tree, Bank of America sucks. I have been in my home for over 12 years and now trying to refinance. Ditech keeps trying to push me to refinance with them but I can get a better rate through my credit union, except for one problem. My loan is owned by Fannie Mae and they have my address wrong. I have been fighting for months to get this corrected. I contacted a lawyer and they want money from me just to talk to me. Not sure at this point what I can do and I’m very frustrated. I called Ditech over a month ago to fix our address and nothing. I called back the other day and the lady said hold on I’ll check. I waited for 10 minutes until I realized she hung up on me. I am not calling back because she should have called me back. She had caller ID, verified my cell number and email address when we started the conversation. I’m very fed up and not sure who can help.

  28. Rose Stewart June 10, 2016 at 7:22 pm -

    Green Tree Servicing LLC and Ditech Financial LLC are the same company as they say in their flier, “New Name. Same Company. Expanded Services.”They continue use deceptive practices.

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

    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.

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

    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.

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

    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.

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

    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 ! ! !

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

    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!!

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

    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!

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

    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.

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