Ditech Financial, the nation’s 12th largest servicer of home mortgages, is now in play – and it comes at a time when several nonbanks are heading for the exit ramp.
Late Wednesday, Ditech disclosed it has retained the investment banking firm of Houlihan Lokey to explore “strategic alternatives to enhance stockholder value,” including a possible sale of the company.
The lender/servicer, which has been losing money for several years, emerged from bankruptcy protection in February 2018. Ditech posted earnings of $466.9 million in the first quarter – a profit built mostly on accounting adjustments tied to its bankruptcy reorganization plan where corporate bondholders forgave a massive amount of debt.
“The question remains: Is there enough meat on the bones for the right suitor?” asked industry consultant Paul Hindman. “I think there is … I believe a marriage between Ditech and Nationstar would be a match made in heaven.”
