Ditech Financial LLC (rebranded from “ditech Mortgage” and "Green Tree Servicing" in 2015) was a provider of home loan, loan servicing and refinance products to consumers and institutional partners in the U.S. In May 2014, Ditech announced its re-entry to the national housing market after it “disappeared” from the marketplace for five years during the subprime mortgage crisis in the late 2000s. It also announced a corporate re-branding with its servicing affiliate, Green Tree Servicing, which took place in 2015. History In 1995, John Paul Reddam founded DiTech Funding Corporation (DiTech) in Costa Mesa, California. The company's name was derived from the phrase “direct technology.” DiTech became one of the first lenders to offer mortgages to the public online and via a toll-free number. In April 1995, Reddam began originating, selling, and servicing mortgage loans tied to the prime interest rate. Reddam's business model quickly extended DiTech's operating territory to seven states by the end of the 1995, and 46 states by the end of 1996. DiTech's rapid growth was fueled in part by an aggressive marketing campaign that included a national television commercial featuring a frustrated loan officer who would mutter, "Lost another loan to DiTech," after losing business to the company. DiTech became a household name as a result of the commercials. In 1999, DiTech was acquired by GMAC (now Ally Financial), then owned by General Motors. GMAC Mortgage renamed DiTech “ditech.com.” Reddam left the company in 2000. In 2005, DiTech was organized as a business unit of Residential Capital, LLC (often referred to as "ResCap"), which controlled mortgage-related subsidiaries owned by General Motors Corporation. Ditech pioneered 125 percent loans that allowed mortgage loan applicants to borrow more than properties were worth. The loans were also low-documentation mortgages, or stated income loans, and many borrowers falsified their incomes. In 2006, ditech.com general manager Michael McCarthy resigned and was replaced by Richard D. Powers. Powers introduced "People Are Smart," an advertising campaign that leveraged GMAC's reputation as a responsible lender and stressed the importance of making prudent decisions based on expert advice provided by ditech.com loan consultants. In February 2010, GMAC relocated ditech.com offices from Costa Mesa to Fort Washington, PA. In May 2010, GMAC changed its name to Ally Financial. In 2012, during the mortgage crisis, Ally took its residential lending unit into bankruptcy in order to pay back the U.S. Treasury following its acceptance of bailout funds.