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46 | TH E M R EP O RT O R I G I NAT I O N S E R V I C I N G A NA LY T I C S S E C O N DA R Y M A R K E T SERVICING THE LATEST LOCAL EDITION THE LATEST LOCAL EDITION After a Year of Ups and Downs, Green Tree Announces Merger THE MINNESOTA COMPANY DOUBLED UP WITH DITECH TO GIVE CLIENTS GREATER PRODUCT VARIETY AND EVEN BETTER SERVICE. MINNESOTA // St. Paul-based Green Tree Servicing has merged with Ditech Mortgage Corp., ful- filling an announcement initially made in February. Green Tree's parent compa- ny, Walter Investment Management Corp., merged Green Tree with 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 an - nouncement, the full legal name of the company will be Ditech Financial, LLC. Green Tree assures its custom- ers 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 recommit - ment to you, our borrowers, to provide excellent customer service and a promise to support you as partners in sustainable homeown - ership," 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. He added, "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 con - sumers and clients and deliver value to our shareholders." Walter Investment also noted in its report that the merge would provide the company with savings opportunities and will increase efficiencies. "Additional cost-savings oppor - tunities of at least $35 million have been identified with approxi- mately $25 million expected to be realized in 2015 related to captur- ing 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. Green Tree's overall servicer health has received both praise as well as some negative criticism from the industry this year. National Mortgage Settlement (NMS) Monitor Joseph A. Smith on June 30 released a compliance update reviewing Green Tree's servicer performance. According to the update, Green Tree's inter - nal review group (IRG) and the professional firms appointed by the monitor found no evidence of fails in any of the metrics tested in the third and fourth quarters of 2014. "I am pleased to see that the servicers are adhering to the NMS's servicing rules, which aim to give borrowers better experi - ences," Smith said. However, in April, the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) took ac - tion against Green Tree Servicing, LLC, for mistreating mortgage bor- rowers who were trying to save their homes from foreclosure. The CFPB determined that Green Tree "failed to honor modi - fications for loans transferred from other servicers, demanded pay- ments before providing loss mitiga- tion options, delayed decisions on short sales, and harassed and threatened overdue borrowers." Green Tree agreed to pay $48 million in restitution to victims and a $15 million civil money penalty for its illegal actions. SERVICING