The retail branch system at Ditech Financial LLC is being dismantled as the lender focuses its efforts on other origination channels.
The Ditech brand, which previously belonged to Ally Financial Inc., was acquired in 2013 by Walter Investment Management Corp.
In September 2015,
Ditech was consolidated with another Walter subsidiary, Green Tree, and re branded as Ditech Financial LLC.
On Thursday, Tampa, Florida-based Walter announced that Ditech
will exit the distributed retail channel.
The exit takes place on Friday.
“Throughout 2015 we moderated our investment in the distributed-retail channel given current and expected market conditions, as well as recent regulatory considerations, and subsequently made the decision to exit the channel,” Walter Investment Vice Chairman, Chief Executive Officer and President Denmar J. Dixon said in the statement. “This decision will allow us to concentrate on the continued development of the consumer-direct channel, and further enhance our focus on the relationships and opportunities available to us in our retention and correspondent lending channels.
The distributed retail channel originated $0.4 billion during the nine months ended Sept. 30, 2015.
Across all channels, Ditech funded $19.6 billion during the nine-month period.
A Ditech spokesperson explained in a written statement that the distributed-retail channel is one where loans are originated through loan officers located in branch offices, whereas loan originators in the consumer-direct channel are located in a centralized call center.
Around 200 employees are expected to be impacted from the decision.
Company-wide, Walter employs approximately 5,850 people.
Loans currently in the pipeline will continue to be closed.
