Ditech Financial, a subsidiary of Walter Investment Management in Tampa, Fla., is exiting the distributed retail mortgage production channel.
The move is effective as of Jan. 8, according to a news release.
Ditech generated about $400 million of total funded volume in the distributed retail channel for the nine-month period ended Sept. 30. That's out of $19.6 billion in total funded volume across all channels, for the same period. The company said it will close all the remaining loan applications in its pipeline originated through the retail channel.
Walter will instead focus on its consumer-direct channel and its retention and correspondent lending channels.
Ditech will terminate about 200 jobs as a result of the exit. Ditech was acquired by Walter Investment Management from Ally Financial, formerly GMAC-ResCap, in March 2013.
