|Industry||Mortgage lending, Financial services|
|Headquarters||Fort Washington, Pennsylvania, USA|
(Chief Operating Officer)
|Products||Fixed rate mortgages, Adjustable-rate mortgages, Jumbo loans, FHA loans, HARP loans, VA loans|
Number of employees
During the 1990s and 2000s, Ditech became a household name for humorous television commercials featuring a frustrated loan officer, played by actor Ron Michaelson, who repeated the catchphrase "Lost another loan to Ditech."
In 1995, John Paul Reddam founded DiTech Funding Corporation (DiTech) in Costa Mesa, California. The company’s name was derived from the phrase “direct technology.” DiTech became one of the first lenders to offer mortgages to the public online and via a toll-free number. In April 1995, Reddam began originating, selling, and servicing mortgage loans tied to the prime interest rate. Reddam’s business model quickly extended DiTech's operating territory to seven states by the end of the 1995, and 46 states by the end of 1996. DiTech’s rapid growth was fueled in part by an aggressive marketing campaign that included a national television commercial featuring a frustrated loan officer who would mutter, "Lost another loan to DiTech," after losing business to the company. DiTech became a household name as a result of the commercials.
Ditech pioneered 125 percent loans that allowed mortgage loan applicants to borrow more than properties were worth. The loans were also low-documentation mortgages, or stated income loans, and many borrowers falsified their incomes. In 2006, ditech.com general manager Michael McCarthy resigned and was replaced by Richard D. Powers.
Powers introduced "People Are Smart," an advertising campaign that leveraged GMAC's reputation as a responsible lender and stressed the importance of making prudent decisions based on expert advice provided by ditch.com loan consultants.
In 2012, during the mortgage crisis, Ally took its residential lending unit into bankruptcy in order to pay back the U.S. Treasury following its acceptance of bailout funds. In November 2012, Ditech was formed from assets of Ally’s GMACRescap estate during the bankruptcy proceeding.
In March 2013, Ditech was acquired by Walter Investment Management Co. from Ally. Following the acquisition, Ditech used the name of Walter’s Green Tree subsidiary to originate loans for regulatory and licensing reasons. DT Holdings, Ditech's parent company, is a subsidiary of Walter Investment Management.
In March 2014, the company resumed originating loans using the Ditech name. The brand had effectively “disappeared” from the marketplace for five years during the mortgage crisis, and the company decided to bring Ditech name back after determining that consumers held largely positive views of the brand. Also in 2014, the company rebranded itself with all lower case spelling (“ditech”).
In May 2014, Ditech announced its re-entry to the U.S. housing market.
Ditech offers a range of home loan and refinance options. Home loan options include fixed rate, adjustable rate, jumbo and FHA loans. Refinancing options include fixed rate, adjustable rate, jumbo and FHA loans, as well as special financing programs such as HARP with expanded loan-to-value limits for qualified applicants. The company will no longer provide nonprime mortgages.
Institutional partner strategy
In May 2014, Ditech launched a three-prong co-branding and joint-venture initiative with more than 600 institutional partners that provide mortgage and refinance loans to their customers. The strategy encompasses direct consumer lending, retail lending and correspondent lending. Institutional partners can price, lock and deliver individual loans through the Ditech website.
Also in May 2014, Ditech announced new correspondent banking products and services including MyCommunityMortgage, FHA Program, Expanded LMPI, and Freddie Only. In June 2014, Ditech’s correspondent lending division began focusing on services for community banks and credit unions, offering their customers access to Ditech’s technology, underwriting, processing, servicing and marketing expertise.
Ditech is well=known for television commercials that aired during the 2000s. They featured a nefarious loan officer, played by actor Ron Michaelson, repeating the catchphrase "Lost another loan to Ditech" written by writer, producer and director Ken Roberts, who created the Ditech television and radio commercials from 1995 to 2007. In May 2007, the company introduced a new marketing campaign, adding the tagline "People Are Smart" and including the signature line Home financing by GMAC to further help distinguish the Ditech brand from direct-to-consumer lenders of questionable repute. Ditech had immensely high unaided brand awareness and customer satisfaction, but many people mistakenly thought Ditech was a subprime lender.
On September 11, 2001 in the U.S., a Ditech commercial was airing on CNN when it was interrupted for an announcement that a plane had struck one of the Twin Towers of the World Trade Center in New York City. This would begin CNN's ongoing live footage of the September 11 attacks.
In popular culture
|“||You know, we're roughly $7 billion in debt. Uh, but don't worry, I've got a plan. I've decided to consolidate all of our debt with one of those debt consolidation companies. That's right. We're gonna go with Ditech. Like me, you've probably seen their commercials late at night on ESPN2. You know, the ones with the guy who says, "Lost another loan to Ditech!" It's a funny commercial!||”|
—Saturday Night Live, 
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- SNL Transcripts: Natalie Portman: 03/04/06: A Message From the President of the United States