A federal bankruptcy court has given the troubled company permission to offload its forward and reverse mortgage businesses
Ditech Holding Corporation has received approval from federal bankruptcy court to proceed with its mortgage origination and servicing and reverse mortgage businesses to New Residential Investment Corp. and Mortgage Assets Management.
In the deal, originally announced in June, New Residential agreed to acquire “substantially all” of Ditech’s forward mortgage servicing and origination business, Ditech Financial, Ditech Holding said. In addition, Mortgage Assets has agreed to acquire “certain stock and assets” associated with Ditech’s reverse mortgage business, Reverse Mortgage Solutions (RMS), and to maintain the operations of RMS as a wholly owned subsidiary.
“With the court’s approval and confirmation of pur plan, we are able to move forward with these value-maximizing transactions and achieve the best patch forward for our stakeholders, including homeowners,” said Thomas F. Marano, chairman and CEO of Ditech Holding. “I would like to thank all of our employees for their hard work and dedication to serving our customers throughout this process.”
Ditech Holding filed for Chapter 11 bankruptcy in February.
