A publicly traded mortgage REIT, recently announced its intention to Double origination volume in the fourth quarter due to its acquisition of Ditech Holding Corporation. This announcement, which was made in the company’s 3Q conference call, further reveals New Residential’s commitment to becoming a full-service mortgage lender.
The acquisition of Ditech Holding Corporation provides New Residential access to a broad range of products, including forward and reverse mortgages, which allows them to compete with larger lenders. Additionally, they now have access to more than 2,000 brokers who work with clients throughout the country, providing New Residential with a greater opportunity to grow their business and attract a larger base of consumers.
The acquisition of Ditech also brings significant benefits to New Residential, including cost synergies and increased scale. By taking advantage of Ditech’s existing infrastructure, New Residential should be able to reduce its operating costs while expanding its ability to meet consumers’ needs. Furthermore, the acquisition allows for greater liquidity, as Ditech’s existing pipeline of mortgage originations provides New Residential with a greater capacity to underwrite new loans.
The expanded scale and product offering will also allow New Residential to better meet the needs of its customers. By combining Ditech’s diverse product offering with New Residential’s existing portfolio of mortgage products, the company will be able to serve a greater range of consumers. In addition to this, by having access to a broader range of brokers, New Residential can better market its products and expand its reach to potential customers.
Overall, the acquisition of Ditech Holding Corporation and its subsidiaries is expected to have a positive impact on New Residential’s bottom line, as the company looks to double its origination volume in the fourth quarter. The acquisition also provides New Residential with the opportunity to become a full-service mortgage lender and expand its customer base. Additionally, the cost synergies realized through the acquisition should help reduce operating costs, allowing New Residential to remain competitive in the mortgage industry and continue to provide customers with high-quality service.
This article was contributed on Aug 10, 2023
