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Ditech Returns with Servicer Advance Receivable Securitization

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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