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SEC Filings

424B1
DITECH HOLDING CORP filed this Form 424B1 on 09/16/1997
Entire Document
 
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                               TABLE OF CONTENTS

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PROSPECTUS SUMMARY........................      4
  The Company.............................      4
         General..........................      4
         Management.......................      4
         The Company's Operations.........      5
         Competitive Advantages...........      6
         Purpose of the Offering..........      6
         Structure and Formation
           Transactions...................      6
  Structure of Company....................      7
  Benefits to Insiders....................     11
  Principals' Conflicts of Interest.......     12
  Dividend Policy and Distributions.......     12
  Summary Risk Factors....................     12
  The Offering............................     13
RISK FACTORS..............................     14
    Dependence Upon Principals and Other
      Key Personnel.......................     14
    Recent Formation and Lack of Relevant
      Experience..........................     14
    Benefits to the Principals............     14
    Negative Effect on Financial Condition
      Due to Board of Director's Ability
      to Change Policies of the Company...     15
    Absence of Independent Valuation for
      Allocation of Equity Interest in
      HCHI................................     15
    Principals' Conflicts of Interest.....     15
    Recent Negative Trends in Revenue and
      Income..............................     16
    Immediate and Substantial Dilution....     16
    Mortgage Assets with Poor
      Documentation and Poor Payment
      Histories...........................     16
    Defaults on Mortgage Assets...........     17
         Defaults on Commercial
           Mortgages......................     17
         Effect of Adverse Economic
           Conditions on Multifamily
           Properties.....................     17
         Decreases in Value of Retail,
           Office and Industrial
           Properties.....................     17
         Environmental Liabilities
           Associated with Contaminated
           Properties.....................     18
    Risks Related to Operations...........     18
         Negative Effects of Fluctuating
           Interest Rates.................     18
         Reduction of Income Due to
           Prepayment.....................     20
         Defaults by Borrowers under
           Mortgage Assets................     20
         Losses Related to Investing in
           Subordinated Classes of
           Mortgage-Backed Securities.....     21
         Losses Related to Borrowings and
           Substantial Leverage...........     21
         Insufficient Demand for Mortgage
           Loans and the Company's Loan
           Products.......................     22
         Lack of Geographic
           Diversification................     23
         Ability to Acquire Mortgage
           Assets at Favorable Spreads
           Relative to Borrowing Costs;
           Competition and Supply.........     23
  Failure to Maintain REIT Status; Company
    Subject to Tax as a Regular
    Corporation...........................     23
  Potential Characterization of
    Distribution as UBTI; Taxation of
    Tax-Exempt Investors..................     24
  Taxable Mortgage Pool Risk; Increased
    Taxation..............................     24
  Market Considerations...................     25
 
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  Investment Company Act Risk.............     25
  Legislative and Regulatory Risk.........     26
  Shares Eligible for Future Sale.........     26
  Preferred Stock; Restrictions on
    Ownership of Common Stock;
    Anti-takeover Measures................     27
THE COMPANY...............................     28
USE OF PROCEEDS...........................     28
DIVIDEND POLICY AND DISTRIBUTIONS.........     28
DIVIDEND REINVESTMENT PLAN................     29
DILUTION..................................     30
CAPITALIZATION............................     31
PRO FORMA FINANCIAL DATA..................     32
SELECTED FINANCIAL DATA...................     34
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
  FINANCIAL CONDITION AND RESULTS OF
  OPERATIONS..............................     35
    Results of Operations.................     35
    Six Months Ended June 30, 1997
      Compared to Six Months Ended June
      30, 1996............................     35
    Year Ended December 31, 1996 Compared
      to Year Ended December 31, 1995.....     37
    Year Ended December 31, 1995 Compared
      to Year Ended December 31, 1994.....     38
    Inflation.............................     40
    Liquidity and Capital Resources.......     40
BUSINESS..................................     42
    General...............................     42
         Background.......................     42
         Business Strategy................     42
    Investment Portfolio..................     43
         General..........................     43
         Single-Family Mortgage
           Operations.....................     43
         Commercial Mortgage Loans and
           Multifamily Mortgage Loans.....     48
    Accumulation Period Acquisitions......     50
    Due Diligence Operations..............     50
    Financing.............................     51
         General..........................     51
         Reverse Repurchase Agreements....     51
    Securitization and Sale Process.......     52
         General..........................     52
         Credit Enhancement...............     53
         Other Mortgage-Backed
           Securities.....................     54
         Capital Allocation Guidelines
           (CAG)..........................     54
         Implementation of the CAG -- Mark
           to Market Accounting...........     55
    Risk Management.......................     55
         Credit Risk Management...........     55
         Interest Rate Risk Management....     56
         Prepayment Risk Management.......     57
    Hedging...............................     57
         Investment Portfolio.............     57
         Costs and Limitations............     58
    Relationships Among Affiliates........     58
    PMSR/OMSR.............................     59
    Regulation............................     59
    Competition...........................     59
    Employees.............................     59
    Service Marks.........................     60
    Facilities............................     60
    Future Revisions in Policies and
      Strategies..........................     60
    Legal Proceedings.....................     60
HCHI ORGANIZATIONAL CHART.................     62
MANAGEMENT................................     63
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