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SEC Filings

424B1
DITECH HOLDING CORP filed this Form 424B1 on 09/16/1997
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     Impact on Origination Volume.  Higher interest rates may also negatively
impact the conduit operations by reducing originations of Multifamily Mortgage
Loans and Commercial Mortgage Loans, since high interest rates will limit the
ability of borrowers to incur new debt or to refinance existing mortgages.
 
  Reduction of Income Due to Prepayments on Mortgage Assets
 
     Mortgage prepayment rates vary from time to time and may cause changes in
the amount of the Company's net interest income. Prepayments on Mortgage Assets
generally increase when mortgage interest rates fall below the then-current
interest rates on such Mortgage Assets. Conversely, prepayments of the Mortgage
Assets generally decrease when mortgage interest rates exceed the then-current
interest rate on the Mortgage Assets. Prepayment experience also may be affected
by the geographic location of the property securing the Mortgage Loans, the
assumability of the Mortgage Loans, the ability of an ARM Mortgage loan to
convert to a fixed-rate Mortgage Loan, conditions in the housing and financial
markets, and general economic conditions. In addition, prepayments on ARMs are
affected by conditions in the fixed-rate mortgage market. If the interest rates
on ARMs increase at a rate greater than the interest rates on fixed-rate
Mortgage Loans, prepayments on ARMs will tend to increase. In periods of
fluctuating interest rates, interest rates on ARMs may exceed interest rates on
fixed-rate Mortgage Loans, which may tend to cause prepayments on ARMs to
increase at a greater rate than anticipated. In addition, any future limitations
on the rights of borrowers to deduct interest payments on Mortgage Loans for
Federal income tax purposes may result in a higher rate of prepayment of
Mortgage Loans. See "Business -- Risk Management -- Prepayment Risk Management."
 
     Prepayments of Mortgage Loans could affect the Company in several adverse
ways. The prepayment of any Mortgage Loan that had been purchased at a premium
by the Company would result in the immediate write-off of any remaining
capitalized premium amount and a consequent increase of the Company's
amortization of purchased mortgage servicing rights (to the extent it has
retained servicing) by such amount. See "Business -- PMSR/OMSR."
 
     Substantially all of the Commercial Mortgage Loans originated by the
Company will contain provisions restricting prepayment. The restrictions may
prohibit prepayments in whole or in part during a specified period of time
and/or require the payment of a prepayment charge or fee. Prepayment
restrictions may, but do not necessarily, deter prepayments. Prepayment charges
or fees may be less than the amount which would fully compensate for the
difference between the yield on the reinvestment of the prepayment proceeds and
the expected yield to maturity of the prepaid Commercial Mortgage Loan. There
can be no assurance that the borrower on a Commercial Mortgage Loan which is
being prepaid will have sufficient financial resources to pay all or any
required prepayment charges, particularly where the prepayment results from
acceleration of the Commercial Mortgage Loan following a payment default. No
assurance can be given that foreclosure proceeds will be sufficient to make any
prepayment charges required in connection with a defaulted Commercial Mortgage
Loan. No representation or warranty is made as to the effect of prepayment
charges on the rate of prepayment of the related Commercial Mortgage Loan.
 
     The laws of a number of states are unclear whether provisions requiring
payment of prepayment charges upon a voluntary or involuntary prepayment are
enforceable. In particular, no assurance can be given that prepayment charges
required in connection with an involuntary prepayment will be enforceable under
applicable law or, if enforceable, that foreclosure proceeds will be sufficient
to make the payment. Proceeds recovered in respect of any defaulted Commercial
Mortgage Loans will, in general, be applied to cover outstanding property
protection expenses, servicing expenses and unpaid principal and interest before
being applied to any prepayment charges.
 
  Defaults by Borrowers under Mortgage Assets
 
     The Company intends to make long-term investments in Mortgage Assets.
Accordingly, during the time it holds Mortgage Assets for investment, the
Company will be subject to the risks of borrower defaults and bankruptcies and
special hazard losses (such as those occurring from earthquakes or floods) that
are not covered by standard hazard insurance. If a default occurs on any
Mortgage Loan held by the Company, the
 
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