Ditech Financial is returning to the securitization market to fund advances of principal and interest payments to mortgage bondholders.

The servicer plans to issue $296 million in bonds backed by repayment rights to advances on Freddie Mac and Fannie Mae mortgages via Green Tree Agency Advance Funding Trust I (Series 2016-T1).

The trust will issue four tranches of notes with preliminary ratings from Standard & Poor’s:  the $221.89 million senior tranche is rated ‘AAA.’

On Aug. 31, 2015, Ditech, a unit of Walter Investment Management, was combined with Green Tree Servicing.

Ditech was acquired by Walter Investment Management from Ally Financial, formerly GMAC-ResCap, in March 2013. Following the acquisition, Ditech operated under the name Green Tree Servicing for regulatory and licensing reasons. DT Holdings, Ditech's parent company, is a subsidiary of Walter Investment Management. In March 2014, the company resumed originating loans using the Ditech name.

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