Welcome to the Ditech/RMS Consumer Creditor Settlement Website
What is happening with my claim?
The Consumer Claims Trustee is in the process of reviewing all consumer borrower claims filed in the Ditech/RMS bankruptcy. The process is expected to carry into late 2021. If we need additional information regarding your claim, we will let you know.
When will I get my money?
Distributions from the settlement fund will not be made until all the claims have been determined. Only those with allowed claims will be eligible for distribution from the fund. The settlement and confirmed chapter 11 plan specify a certain order of payments from the fund, therefore it is possible that even those with allowed claims may receive nothing or only a portion of their claim. At the earliest, we expect funds will be distributed in late 2021.
Why does it take so long?
First, we have received over 5,600 claims. Each claim must be reviewed and investigated. This takes time. Second, we cannot just pay claims once they are determined (“allowed”), because we have limited funds, and we will not know if we have enough to pay all allowed claims in full until we have finished reviewing and determining all filed claims. As a result, if the funds are not sufficient to cover all of the allowed claims, some distributions from the fund may need to be paid out on a pro rata basis among all claimants with allowed claims. We will not know if allowed claims will be reduced on a pro rata basis until after we have finished reviewing all the claims.
What is this all about?
Ditech Financial, LLC, Reverse Mortgage Solutions (RMS), and other related businesses filed for bankruptcy on February 11, 2019. Ditech Financial, LLC, is going out of business. Its assets were sold to New Residential Investment Management LLC. RMS was reorganized and now operates under new owners. More information about the Ditech/RMS Chapter 11 Bankruptcy including general information, docket information, and on-line claim forms, can be found at https://dm.epiq11.com/case/
A Consumer Creditors’ Committee was appointed by the United States Trustee to represent the interest of consumer borrowers. The Committee negotiated a settlement with the companies that sets aside money to pay allowed legal claims against Ditech and RMS. Under the settlement the Committee also appointed a Consumer Representative/Claims Trustee to review all the claims filed by consumer borrowers and to help consumer borrowers in fixing Ditech and RMS account mistakes.
Because of the bankruptcy, borrowers cannot sue Ditech and RMS for money based on something they did wrong before the bankruptcy. Borrowers can still defend foreclosure based on things Ditech or RMS did.