Ditech Financial will convert its St. Louis-area loan servicing center into a mortgage origination facility focusing on new loan production.
The servicing employees at the Earth City, Mo., facility have been offered the opportunity to work in the origination business. The company will pay for training and licensing expenses. Fort Washington, Pa.-based Ditech also will hire additional people for this location. The transition will take place in the third quarter of this year.
Ditech's parent company, Walter Investment Management Corp., serviced more than $255 billion at the end of the first quarter. The company has not responded yet to questions about how much of that was being done at the Earth City facility and how many employees are affected.
"We've recently experienced a steady increase in requests for new loans, presenting the ideal opportunity to transition the St. Louis site from servicing to originations," said David Schneider, Ditech's president, in a press release. "This change gives us the opportunity to keep quality employees and equip them with new skills, as well as bring new jobs to the market."
Schneider was named president of both originations and servicing at Ditech in February. He previously ran Ditech's servicing operation. One month prior, Ditech stopped originating loans through retail branchesto focus on consumer-direct and correspondent loan production.
