Ditech Holding has announced putting its forward mortgage servicing and originations business, Ditech Financial, as well as its reverse mortgage business, Reverse Mortgage Solutions, up for sale.
The company said it entered into an asset purchase agreement with New Residential Investment proposing to acquire the assets of Ditech Financial and Mortgage Assets Management to purchase both stock and assets of Reverse Mortgage Solutions. Ditech filed for bankruptcy in February and closed its St. Paul, Minn., mortgage office two months later.
"We believe the agreements with New Residential and Mortgage Assets position us to maximize value and create the best path forward for our stakeholders, including homeowners and customers," said Thomas Marano, chairman of the board and chief executive officer of Ditech Holding.
Under the terms of each agreement, New Residential and Mortgage Assets will serve as “stalking horse bidders” in court-supervised sale processes, according to the company.
However, Ditech said it would still accept higher offers from other qualified bids and would conduct an auction or auctions with New Residential and Mortgage Assets’ proposed agreements on its early-bird list.
Ditech scheduled the deadline for submitting bids on July 8, and if other qualified bids are submitted, the auction/s will start on July 11 at 10 a.m. Eastern time. Lastly, a hearing on confirmation of the company’s reorganization plan and approval of the sales will begin on Aug 7.
"I would like to thank all of our employees for their continued hard work and dedication,” Marano said. “As a result of their efforts, we have continued serving our customers throughout our court-supervised process."