Fulfilling an announcement initially made in February, Green Tree Servicing is merging with Ditech Mortgage Corp., according to an announcement on Thursday from Green Tree. The merge will be effective August 31, 2015.
Green Tree's parent company, Walter Investment Management Corp., will merge St. Paul, Minnesota-based Green Tree with Washington, Pennsylvania-based Ditech, another company owned by Walter Investment to form Ditech, a Walter company.
"By combining forces, we can give you access to a broader variety of home financing products and improved customer service through a single point of contact," Green Tree said in its announcement.
According to Green Tree's announcement, the full legal name of the company will be Ditech Financial, LLC.
Green Tree assures its customers that although the company will operate under a new name, the company will remain the same and provide quality services.
"Combining our companies and changing our name to Ditech, a Walter company is a recommitment to you, our borrowers, to provide excellent customer service and a promise to support you as partners in sustainable home ownership," Green Tree said in the "Frequently Asked Questions" section of its website.
In February, Walter Investment announced the merger for the first time in its full year and fourth quarter 2014 operational highlights and financial results.
"By consolidating our Green Tree and Ditech brands under the name 'Ditech, a Walter Company' and enhancing focus on the use of technology, we will drive efficiencies through the reduction of duplicative functions and cost structures and become a stronger, more unified end-to-end mortgage company," said Mark J. O'Brien, Walter Investment's chairman and CEO. "As a diversified mortgage operation consolidated under one name we will be well-positioned to take advantage of sector opportunities and leverage our core capabilities to provide high quality service to our consumers and clients and deliver value to our shareholders."
Walter Investment also noted in their report that the merge would provide the company with savings opportunities and will increase efficiencies.
"Additional cost-savings opportunities of at least $35.0 million have been identified with approximately $25.0 million expected to be realized in 2015 related to capturing opportunities for enhanced benefits from shared services, the consolidation of Green Tree Servicing and Ditech in the second half 2015 and a significant acceleration of automation efforts which will increase efficiencies company-wide," O'Brien said.