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/dit/info.
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.