Following multiple warnings, Ditech Holding Corporation (NYSE: DHCP), the parent company of Reverse Mortgage Solutions, is being delisted from the New York Stock Exchange.
The NYSE is delisting the company after its failing to meet the NYSE’s listing standard requiring companies to maintain at least $15 million in average global market capitalization over a consecutive 30-day period.
According to a press release from Ditech, the stock exchange has suspended trading for the Ditech’s securities and is moving forward to delist the company. The suspension and delisting proceedings do not affect business operations, Ditech said in the release. RMS is the company’s reverse mortgage servicing division, and Ditech expects the stocks and warrants that have been delisted to be traded in the “over-the-counter market.”
“However, there is no assurance that an active market will be maintained for the Company’s securities,” the press release states.
The company received a delisting warning in May 2018 when it did not submit its first quarter Form 10-Q to the Securities and Exchange Commission within the specified time period. The company also received warnings in August and June of 2017.
Earlier this year, the company came back from bankruptcy as Ditech Holding Corporation, having previously done business under the name Walter Investment Management Corporation.
In June the company announced its plans to increase shareholder value, and in the most recent press release the board said it is continuing to look at “strategic alternatives.”
Walter acquired RMS in 2011 and Security One the following year. Last year, when Walter decided to stop originating Home Equity Conversion Mortgages, RMS turned to servicing only and closed its retail channel.
Written by Maggie Callahan