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SEC Filings

DITECH HOLDING CORP filed this Form T-3 on 11/06/2017
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  2) Employees

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 Company’s loan originations and servicing groups to third-party vendors located in the U.S. and offshore.

All employee 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 Debtor’s books.


  3) Competition

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 servicer’s scale of operations and financial strength; a servicer’s access to capital to fund acquisitions of MSR; a servicer’s ability to meet contractual and regulatory obligations and to achieve favorable performance (i.e., in default management) relative to other servicers; a servicer’s ability to provide a favorable experience for the borrower; and a servicer’s 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 Company’s existing servicing portfolio. In this area, the price and variety of the Company’s mortgage products are important factors of competition, as is the reputation of the Company’s servicing business and the quality of the experience the borrower may have had with the Company’s servicing business. Since mid-2015, the Company’s 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 Company’s 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 Company’s services through its website and mobile devices.


  B. Debtor’s 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 Debtor’s organizational structure, as of the date hereof.