Ditech Mortgage Is Back: Party Like It’s 1995

May 22, 2014 15 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.


  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 -


    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 -


    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. ?

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