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SEC Filings

424B1
DITECH HOLDING CORP filed this Form 424B1 on 09/16/1997
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     THERE ARE NO ASSURANCES THAT THE INFORMATION SET FORTH IN THE PRIOR
PERFORMANCE TABLE IS INDICATIVE IN ANY WAY OF THE EXPECTED PERFORMANCE OF THE
COMPANY. THE RETURNS DESCRIBED IN THE TABLE WERE GENERATED BY SHORT-TERM TRADING
IN MORTGAGE LOANS. THE COMPANY'S INVESTMENT STRATEGIES WILL BE LONG-TERM IN
NATURE AND WILL THEREFORE BE SIGNIFICANTLY DIFFERENT FROM THE STRATEGIES THAT
HCP HAS EMPLOYED IN MANAGING TRADING ACTIVITIES. ACCORDINGLY, THE RETURN
INFORMATION SET FORTH IN THE TABLE SHOULD NOT BE RELIED UPON IN MAKING AN
INVESTMENT IN THE COMPANY.
 
     Single-Family Acquisitions Process.  The Company will focus on the purchase
of pools of whole Single-Family Mortgage Loans that do not fit into the large
government-sponsored or conduit programs. Single-Family Mortgage Loans generally
are acquired in pools from a wide variety of sources, including private sellers
such as banks, thrifts, finance companies, mortgage companies and governmental
agencies. The Principals believe that banks, finance companies, mortgage
companies and investment banks with which HCP, HCMC and their employees have
developed relationships will be a continuing source of information on available
Single-Family Mortgage Loan portfolios. Sales representatives, who will be
employees of the Company, will be located in Illinois, Minnesota, California,
Massachusetts and New York. In addition, HCP has a due diligence and
underwriting staff, located in Edison, New Jersey, consisting of approximately
seven full-time employees. The due diligence staff will contribute to the
Single-Family Mortgage Loan acquisition process by providing expertise in the
analysis of many characteristics of the Single-Family Mortgage Loans. It has
been the Principals' experience that buyers generally discount the price of a
Single-Family Mortgage Loan when there exists a lack of information. By
providing additional information on loan pools through the Due Diligence
Operations, the Company will be able to better assess the value of loan pools
than in the absence of such information. See "Risk Factors -- Risks Related to
Operations." See "Management -- Directors and Executive Officers."
 
     Single-Family Mortgage Loan portfolios are usually acquired through
competitive bids and negotiated transactions. The competition for larger
Single-Family Mortgage Loan portfolios is generally more intense. In addition to
bidding on and acquiring large Single-Family Mortgage Loan portfolios, the
Company intends to acquire small Single-Family Mortgage Loan portfolios where
competition is less intense. The Principals believe that the Company's funding
flexibility, personnel, proprietary due diligence software and Single-Family
Mortgage Loan trading relationships will provide it with certain advantages over
competitors in pricing and purchasing certain Single-Family Mortgage Loan
portfolios. See "Risk Factors -- Risks Related to Operations -- Ability to
Acquire Mortgage Assets at Favorable Spreads Relative to Borrowing Costs;
Competition and Supply."
 
     Prior to making an offer to purchase a Single-Family Mortgage Loan
portfolio, the Company's employees who specialize in the analysis of
Single-Family Mortgage Loans will conduct an extensive investigation and
evaluation of the individual Single-Family Mortgage Loans in the portfolio. This
examination typically consists of analyzing the information made available by
the portfolio seller (generally, an initial outline of a Single-Family Mortgage
Loan portfolio with the respective credit and collateral files for the
Single-Family Mortgage Loan), reviewing other relevant material that may be
available, analyzing the underlying collateral (including reviewing the
Company's Single-Family Mortgage Loan database which contains, among other
things, listings of property values and loan loss experience in local markets
for similar assets), and obtaining opinions of value from third parties (and, in
some cases, conducting site inspections). The Company's senior employees will
determine the amount to be offered by the Company to acquire the Single-Family
Mortgage Loan portfolio by using a proprietary stratification and pricing system
which focuses on, among other things, rate, term, location and types of the
loans. The Company will also review information on the local economy and real
estate markets (including the amount of time and procedures legally required to
foreclose on real property) in the area in which the Single-Family Mortgage Loan
collateral is located.
 
     In conducting due diligence operations, HCP often discovers non-conforming
elements of Single-Family Mortgage Loans, such as: (i) problems with documents,
including missing or lost documentation, errors on documents, nonstandard forms
of documents and inconsistent dates between documents, (ii) problems with the
real estate, including inadequate initial appraisals, deterioration in property
values or economic decline in the general geographic area, and (iii)
miscellaneous problems, including poor servicing, poor credit history of the
borrower, poor payment history by the borrower and currently delinquency status.
 
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