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BofA Objects to Ditech Sale, Says it Abandons Elderly Borrowers

July 18, 2019, 9:03 PM

Bank of America Corp. objects to the bankruptcy plan proposed by Ditech Holding Corp. because it would sell Ditech’s reverse mortgage business without transferring thousands of elderly borrowers or the associated subservicing agreement to the buyer, according to new court filing.

  • Ditech’s Reverse Mortgage Solutions Inc. services the reverse mortgages as part of a subservicing agreement with BofA, which no longer has ability to service the portfolio: filing
  • Ditech should not be allowed to walk away from this protected class of borrowers without making an acceptable arrangement for a replacement subservicer or providing BofA with sufficient time to make ...

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