As of the Commencement Date, the Company employs approximately 4,130 employees, approximately
4,080 full-time, approximately 40 part-time employees, and 10 temporary employees. Of these individuals, the Debtor employs approximately 225 full-time employees, five part-time employees, and five temporary employees who perform a variety of
critical functions, including administrative, legal, accounting, finance, and management-related tasks. All executive officers of the Company, except for one, are employed by the Debtor. In addition, the Company outsources certain back-office
functions that support the Companys loan originations and servicing groups to third-party vendors located in the U.S. and offshore.
wages, salaries, and other compensation and benefits of the Company are paid by Ditech. Intercompany accounting entries are created to record the allocable liability on the Debtors books.
The Company competes with a number of institutions in the mortgage banking market for both
the servicing and originations businesses as well as in the reverse mortgage and complementary businesses. In the servicing area, the Company competes with other servicers to acquire MSR and for the right to subservice mortgages for others.
Competitive factors in the servicing business include: a servicers scale of operations and financial strength; a servicers access to capital to fund acquisitions of MSR; a servicers ability to meet contractual and regulatory
obligations and to achieve favorable performance (i.e., in default management) relative to other servicers; a servicers ability to provide a favorable experience for the borrower; and a servicers cost to service or subservice. In the
mortgage originations area, the Company competes to refinance or provide new mortgage loans to borrowers whose mortgages are in the Companys existing servicing portfolio. In this area, the price and variety of the Companys mortgage
products are important factors of competition, as is the reputation of the Companys servicing business and the quality of the experience the borrower may have had with the Companys servicing business. Since
mid-2015, the Companys forward loan origination and servicing businesses have operated under a single Ditech brand. The Company also competes, principally on the basis of price and process
efficiency, to acquire mortgages from correspondent lenders. In the future, as the Company endeavors to grow the amount of purchase money (i.e., non-refinance) mortgages the Company originates, the Company
will also increasingly compete on the basis of brand awareness.
Across the Companys servicing and originations businesses, technology is an
important competitive factor. In particular, the Company believes it will be increasingly important to enable servicing and originations customers to access the Companys services through its website and mobile devices.
||Debtors Organizational Structure. |
The Debtor owns, directly or indirectly, 100% of the
ownership interest in each of the Non-Debtor Affiliates. The organizational chart, attached hereto as Exhibit G, illustrates the Debtors organizational structure, as of the date hereof.