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1
HEY YOU
2016 Feb 8, 11:10am
I'll take a negative interest rate mortgage. Is that where they pay me interest each month?
2
anonymous
2019 Feb 11, 11:18pm
Ditech files for Chapter 11 bankruptcy for second time in 14 months. Financial difficulties persist for troubled nonbank
It appears that the financial troubles of Ditech Holding Corp., the nonbank formerly known as Walter Investment Management, are far from over.
Last year, the company emerged from Chapter 11 bankruptcy after completing a financial restructuring plan that eliminated $800 million in corporate debt and changed its name to Ditech Holding.
But that wasn’t enough to put the nonbank’s troubles behind it. Now, just 14 months after filing for Chapter 11, the company is filing for Chapter 11, again.
Ditech announced early Monday morning that it, along with its subsidiaries Ditech Financial and Reverse Mortgage Solutions, have entered into a “restructuring support agreement” that will seek to restructure the company’s debt, because the last time wasn’t enough, apparently.
According to the company, through the restructuring, the company is attempting to eliminate $800 million more in debt, recapitalize, improve its liquidity, and build an “appropriately sized working capital facility.”
To facilitate this restructuring, Ditech has filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.
According to the company, it plans to continue operating while it’s in Chapter 11, but notes that it is still considering “strategic alternatives” that could include selling the company, selling off some of the company’s assets, or changing the company’s business model.
In June 2018, Ditech warned investors that it was exploring “strategic alternatives to enhance stockholder value,” that included possibly selling the company. That move came after its initial bankruptcy proceedings, which stemmed from a long string of financial losses for the company.
The company declared bankruptcy back in December 2017, hoping that it could emerge on solid footing, but 2018 was more of the same for Ditech.
In November, the nonbank ran into more trouble when it was kicked off of the New York Stock Exchange over the company’s low share price and market cap.
And then, just a few weeks ago, the company fired its chief operating officer, Ritesh Chaturbedi, who’d only been with the company for nine months.
And now, the company is trying to extinguish even more of its debt.
According to Ditech President and CEO Thomas Marano, “market challenges” have put pressure on the company and the company feels that it must make this move to ensure that it can continue to operate.
“Since we completed a recapitalization last February, we have made important progress on our strategic initiatives and our expense management efforts. However, as a result of market challenges that have continued to accelerate and pressure our business, we must take further action,” Marano said in a statement.
“We intend to use this process to restructure our balance sheet and help us meet our obligations. We will continue to evaluate a broad range of options with the goals of maximizing value and creating the best path forward for our business,” Marano added. “We are pleased to have the support of our lenders in this process.”
One thing that’s different this time from the first time Ditech filed for Chapter 11 is that its subsidiaries Ditech Financial and Reverse Mortgage Solutions are included in the bankruptcy proceedings.
In an effort to provide more information to its customers about the bankruptcy filing, Ditech and RMS sent letters to their customers and put out FAQs about the process as well, which includes questions like: “Didn’t you go through this process a year ago? What’s different this time?”
https://www.housingwire.com/articles/48148-ditech-files-for-chapter-11-bankruptcy-for-second-time-in-14-months
It appears that the financial troubles of Ditech Holding Corp., the nonbank formerly known as Walter Investment Management, are far from over.
Last year, the company emerged from Chapter 11 bankruptcy after completing a financial restructuring plan that eliminated $800 million in corporate debt and changed its name to Ditech Holding.
But that wasn’t enough to put the nonbank’s troubles behind it. Now, just 14 months after filing for Chapter 11, the company is filing for Chapter 11, again.
Ditech announced early Monday morning that it, along with its subsidiaries Ditech Financial and Reverse Mortgage Solutions, have entered into a “restructuring support agreement” that will seek to restructure the company’s debt, because the last time wasn’t enough, apparently.
According to the company, through the restructuring, the company is attempting to eliminate $800 million more in debt, recapitalize, improve its liquidity, and build an “appropriately sized working capital facility.”
To facilitate this restructuring, Ditech has filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.
According to the company, it plans to continue operating while it’s in Chapter 11, but notes that it is still considering “strategic alternatives” that could include selling the company, selling off some of the company’s assets, or changing the company’s business model.
In June 2018, Ditech warned investors that it was exploring “strategic alternatives to enhance stockholder value,” that included possibly selling the company. That move came after its initial bankruptcy proceedings, which stemmed from a long string of financial losses for the company.
The company declared bankruptcy back in December 2017, hoping that it could emerge on solid footing, but 2018 was more of the same for Ditech.
In November, the nonbank ran into more trouble when it was kicked off of the New York Stock Exchange over the company’s low share price and market cap.
And then, just a few weeks ago, the company fired its chief operating officer, Ritesh Chaturbedi, who’d only been with the company for nine months.
And now, the company is trying to extinguish even more of its debt.
According to Ditech President and CEO Thomas Marano, “market challenges” have put pressure on the company and the company feels that it must make this move to ensure that it can continue to operate.
“Since we completed a recapitalization last February, we have made important progress on our strategic initiatives and our expense management efforts. However, as a result of market challenges that have continued to accelerate and pressure our business, we must take further action,” Marano said in a statement.
“We intend to use this process to restructure our balance sheet and help us meet our obligations. We will continue to evaluate a broad range of options with the goals of maximizing value and creating the best path forward for our business,” Marano added. “We are pleased to have the support of our lenders in this process.”
One thing that’s different this time from the first time Ditech filed for Chapter 11 is that its subsidiaries Ditech Financial and Reverse Mortgage Solutions are included in the bankruptcy proceedings.
In an effort to provide more information to its customers about the bankruptcy filing, Ditech and RMS sent letters to their customers and put out FAQs about the process as well, which includes questions like: “Didn’t you go through this process a year ago? What’s different this time?”
https://www.housingwire.com/articles/48148-ditech-files-for-chapter-11-bankruptcy-for-second-time-in-14-months
3
anonymous
2019 Feb 11, 11:19pm
Provident Financial Holdings announced its exit from mortgage banking earlier this week.
In a released statement the firm said challenging economic and operating conditions made it difficult to make a profit in home loan originations. The company’s CEO also cited “required investments in expensive technology” as another reason.
The company plans to layoff 122 full-time-equivalent employees, presumably working in the now-abandoned Provident Bank Mortgage brand, in the coming months, though it will not exit the mortgage lending industry entirely. PBM will be retired by the end of June.
“The company plans to continue to originate single-family mortgage loans for retention on its balance sheet, both within its market area, the Inland Empire region of Southern California and other locations in California,” the statement said. “Also, the company will continue to purchase these loans consistent with its historical activity.”
Craig Blunden, the company’s chairman and CEO said that, in its role as a community bank, they will be increasing single-family mortgage loans and higher-yielding loans such as multi-family, commercial real estate, construction, and commercial business loans held for investment.
“We have been in the mortgage banking business for many years and have weathered unfavorable mortgage banking environments in the past,” Blunden said.
“Unfortunately, the current poor operating environment is coupled with fundamental changes in the mortgage banking industry such as more burdensome regulations, required investments in expensive technology, fierce competition, and razor thin profitability, to name a few,” he added.
The company estimates that it will incur one-time costs of approximately $3.6 million to $4 million during the remainder of fiscal 2019.
https://www.housingwire.com/articles/48116-provident-financial-abandons-mortgage-banking
In a released statement the firm said challenging economic and operating conditions made it difficult to make a profit in home loan originations. The company’s CEO also cited “required investments in expensive technology” as another reason.
The company plans to layoff 122 full-time-equivalent employees, presumably working in the now-abandoned Provident Bank Mortgage brand, in the coming months, though it will not exit the mortgage lending industry entirely. PBM will be retired by the end of June.
“The company plans to continue to originate single-family mortgage loans for retention on its balance sheet, both within its market area, the Inland Empire region of Southern California and other locations in California,” the statement said. “Also, the company will continue to purchase these loans consistent with its historical activity.”
Craig Blunden, the company’s chairman and CEO said that, in its role as a community bank, they will be increasing single-family mortgage loans and higher-yielding loans such as multi-family, commercial real estate, construction, and commercial business loans held for investment.
“We have been in the mortgage banking business for many years and have weathered unfavorable mortgage banking environments in the past,” Blunden said.
“Unfortunately, the current poor operating environment is coupled with fundamental changes in the mortgage banking industry such as more burdensome regulations, required investments in expensive technology, fierce competition, and razor thin profitability, to name a few,” he added.
The company estimates that it will incur one-time costs of approximately $3.6 million to $4 million during the remainder of fiscal 2019.
https://www.housingwire.com/articles/48116-provident-financial-abandons-mortgage-banking
4
anonymous
2019 Feb 20, 2:28pm
Chase guarantees it will close a mortgage in 21 days or it’ll give you $1,000 - Rolls out new loan closing guarantee program for customers
Chase Home Lending now claims it can close on a borrower’s mortgage in as little as three weeks and it’s putting its money where its mouth is to back up that claim.
Chase announced recently that it is rolling out a program called “Closing Guarantee” for its existing customers. Through the program, the bank promises to close a mortgage in 21 days, and if the bank doesn’t close on the loan in the timeframe, it will pay the borrower $1,000.
“We’re here to help our customers get into their new homes as fast as possible,” said Sean Grzebin, head of mortgage originations for Chase Home Lending. “Our Closing Guarantee underscores our dedication to our customers and what matters to them. We want to reward our loyal Chase customers looking to buy a new home – with competitive rates, a chance to earn Ultimate Rewards points, discounts, and now the edge on speed.”
The program is available to Chase customers who have a checking account, credit card, or car loan with the bank. Customers must also be using Chase as their mortgage lender.
The 21-day closing guarantee window begins when the prospective borrower completes their mortgage application with Chase.
“All the customer has to do is submit any financial documentation that Chase doesn’t already have plus a purchase agreement,” Chase said. “Then, Chase will close the loan on or before the contract closing date or pay the buyer $1,000.”
According to Chase, the offer is available for new, residential first-lien mortgage applications submitted directly to Chase after Feb. 4, 2019.
The move comes as other lenders are rolling out their own quick-close mortgage options. For example, loanDepot just announced a new digital mortgage that it claims it can close in as little as eight days.
And with the industry average for closing times on mortgages hovering around 45 days, lenders are now touting their closing speeds as a reason to choose them.
And while Chase can only promise that its mortgage will close two weeks slower than loanDepot, it’s still twice as fast as the industry average. And if the mortgage doesn’t close in 21 days, Chase hands the borrower a check for $1,000 after the loan closes.
Let the games begin.
https://www.housingwire.com/articles/48238-chase-guarantees-it-will-close-a-mortgage-in-21-days-or-itll-give-you-1000
Chase Home Lending now claims it can close on a borrower’s mortgage in as little as three weeks and it’s putting its money where its mouth is to back up that claim.
Chase announced recently that it is rolling out a program called “Closing Guarantee” for its existing customers. Through the program, the bank promises to close a mortgage in 21 days, and if the bank doesn’t close on the loan in the timeframe, it will pay the borrower $1,000.
“We’re here to help our customers get into their new homes as fast as possible,” said Sean Grzebin, head of mortgage originations for Chase Home Lending. “Our Closing Guarantee underscores our dedication to our customers and what matters to them. We want to reward our loyal Chase customers looking to buy a new home – with competitive rates, a chance to earn Ultimate Rewards points, discounts, and now the edge on speed.”
The program is available to Chase customers who have a checking account, credit card, or car loan with the bank. Customers must also be using Chase as their mortgage lender.
The 21-day closing guarantee window begins when the prospective borrower completes their mortgage application with Chase.
“All the customer has to do is submit any financial documentation that Chase doesn’t already have plus a purchase agreement,” Chase said. “Then, Chase will close the loan on or before the contract closing date or pay the buyer $1,000.”
According to Chase, the offer is available for new, residential first-lien mortgage applications submitted directly to Chase after Feb. 4, 2019.
The move comes as other lenders are rolling out their own quick-close mortgage options. For example, loanDepot just announced a new digital mortgage that it claims it can close in as little as eight days.
And with the industry average for closing times on mortgages hovering around 45 days, lenders are now touting their closing speeds as a reason to choose them.
And while Chase can only promise that its mortgage will close two weeks slower than loanDepot, it’s still twice as fast as the industry average. And if the mortgage doesn’t close in 21 days, Chase hands the borrower a check for $1,000 after the loan closes.
Let the games begin.
https://www.housingwire.com/articles/48238-chase-guarantees-it-will-close-a-mortgage-in-21-days-or-itll-give-you-1000
5
anonymous
2019 Feb 20, 2:31pm
loanDepot releases tech to close mortgages in 8 days - Invests $80 million in new digital mortgage
loanDepot announced its new digital mortgage, which it says can identify significant time and cost-savings for borrowers in seven minutes.
The lender claims its digital mortgage, mello smartloan, can close a loan in just eight days.
loanDepot combined its proprietary mello loan origination technology with expanded intelligent data sources to create its end-to-end digital mortgage.
And it’s eight-days to close claim is down significantly from the market’s average of 43 days, according to the latest Origination Report from Ellie Mae.
“We designed the mello smartloan to mirror the digital experience that today’s consumer wants,” loanDepot Founder and CEO Anthony Hsieh said. “The mello smartloan leapfrogs decades of traditional industry reliance on paper documentation and physical files.”
“Our unmatched technology accelerates beyond current front-end data validation techniques to eliminate homebuyers’ biggest stressors: voluminous documentation requirements and extended loan processing and cycle times,” Hsieh said. “The mello smartloan eliminates the paperwork and the guesswork while delivering a great product at a great value.”
The mello smartloan converts these services digitally in real time:
•Income, asset and employment verification
•Credit checks
•Appraisal, title and flood validation
•Closing
loanDepot predicts up to 55% of new applicants will be eligible to use its digital mortgage, and could see lower overhead costs. The company invested $80 million in the creation of its new technology that powers the smartloan.
“We built the mello smartloan with one goal in mind – the customer experience, where obtaining a loan complemented our customers’ digital lifestyles,” said Tammy Richards, COO of loanDepot. “We are committed to making the entire end-to-end loan process easier, faster, stress-free and a natural extension of our customers’ lives.”
https://www.housingwire.com/articles/48231-loandepot-releases-tech-to-close-mortgages-in-8-days
Company: https://www.loandepot.com/
loanDepot announced its new digital mortgage, which it says can identify significant time and cost-savings for borrowers in seven minutes.
The lender claims its digital mortgage, mello smartloan, can close a loan in just eight days.
loanDepot combined its proprietary mello loan origination technology with expanded intelligent data sources to create its end-to-end digital mortgage.
And it’s eight-days to close claim is down significantly from the market’s average of 43 days, according to the latest Origination Report from Ellie Mae.
“We designed the mello smartloan to mirror the digital experience that today’s consumer wants,” loanDepot Founder and CEO Anthony Hsieh said. “The mello smartloan leapfrogs decades of traditional industry reliance on paper documentation and physical files.”
“Our unmatched technology accelerates beyond current front-end data validation techniques to eliminate homebuyers’ biggest stressors: voluminous documentation requirements and extended loan processing and cycle times,” Hsieh said. “The mello smartloan eliminates the paperwork and the guesswork while delivering a great product at a great value.”
The mello smartloan converts these services digitally in real time:
•Income, asset and employment verification
•Credit checks
•Appraisal, title and flood validation
•Closing
loanDepot predicts up to 55% of new applicants will be eligible to use its digital mortgage, and could see lower overhead costs. The company invested $80 million in the creation of its new technology that powers the smartloan.
“We built the mello smartloan with one goal in mind – the customer experience, where obtaining a loan complemented our customers’ digital lifestyles,” said Tammy Richards, COO of loanDepot. “We are committed to making the entire end-to-end loan process easier, faster, stress-free and a natural extension of our customers’ lives.”
https://www.housingwire.com/articles/48231-loandepot-releases-tech-to-close-mortgages-in-8-days
Company: https://www.loandepot.com/
http://time.com/money/4211862/quicken-loans-rocket-mortgage-super-bowl-ad/