The sale of Ditech Holding's forward and reverse mortgage businesses will soon be in the hands of New Residential Investment and Mortgage Assets Management, after a federal bankruptcy could judge approved the proposed sale plan.
"Earlier this year, Ditech agreed to sell its forward mortgage originations and servicing businesses to New Residential and the stock and assets of its reverse mortgage business, Reverse Mortgage Solutions, to Mortgage Assets Management," according to HousingWire.
"And this week, the United States Bankruptcy Court for the Southern District of New York approved the sale of both companies, setting the stage for the sales to go through later this year."
The final purchase price is undetermined at this time, though, the report revealed it will be determined by tangible book value of related assets. Mortgage Assets Management plans on operating Reverse Mortgage Solutions as a wholly-owned subsidiary.
"The move to sell came after years of financial trouble that saw Ditech, the nonbank formerly known as Walter Investment Management, file for Chapter 11 bankruptcy twice in 14 months," according to HW.
To learn more about the sale's approval and what the future holds for the buyers, click on the image above.