Marginal Revolutions

Ditech has been a very popular mortgage and credit lender. It is a member of the General Motors Acceptance Corporation also known by its abbreviation of GMAC. GMAC purchase Ditech in the year 1999. The companies name is derived from the term Direct Technology. In 2008 Ditech became part of Residential Capital, LLC which is also known by its other name of ResCap. This company includes Ditech and several other GMAC lending businesses. The company Ditech opened in 1995 and is based out of Costa Mesa, Orange County, California.

Ditech is known to many people because of its obnoxious commercials. Many of its commercials features the actor Ron Michaelson who shouts the Ditech catch phrase, Lost another loan to Ditech. The commercials could be seen all over the television on many different channels. The new marketing campaign in 2007 added the tagline, People Are Smart and included a Home financing by GMAC to help elevate Ditech from other mortgage companies. During this time Ditech offered a menu of different products. Some of the products included the Sleep EZ Loan that was a fixed rate mortgage that gave borrowers relief by allowing them to pay interest for the first ten years without any penalties. The other product was the Real Life Plan that combined mortgages, loans and credit cards.

With all Ditechs advertising efforts it was still categorized as a subprime lending product. Ditech first started the offer of 125 percent loans. On this type of loan the borrower could get more on the loan than the property was worth. This loan was also low documentation that allowed borrowers to falsify their income. Many borrowers have worked with Ditech and had their mortgage rate fixed or have sold back to Ditechs parent company. To find out more about Ditech you can go onto their website or call their info line and find out a lot of information about this company.


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