FALSE000183163100018316312024-11-052024-11-05

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 8-K
_____________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (or date of earliest event reported): November 5, 2024
_____________________
loanDepot, Inc.
(Exact Name of Registrant as Specified in its Charter)
_____________________
Delaware001-4000385-3948939
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification Number)
6561 Irvine Center Drive
Irvine, California 92618
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (888) 337-6888
_____________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange
on which registered
Class A Common Stock, $0.001 Par ValueLDINew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  o

Item 2.02 Results of Operations and Financial Condition.

On November 5, 2024, loanDepot, Inc. (the "Company") issued a press release announcing its results for the three and nine months ended September 30, 2024 (the “Earnings Press Release”). The full press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 7.01 Regulation FD Disclosure.

On November 5, 2024, the Company posted on its website at www.loandepot.com a presentation (the “loanDepot Presentation”) on certain financial and operating initiatives available for viewing during the Company’s conference call and webcast announcing its financial results for the three and nine months ended September 30, 2024 at 5:00 p.m. Eastern time on November 5, 2024.

A copy of the loanDepot Presentation is furnished pursuant to this Item 7.01 as Exhibit 99.2 to this Current Report on Form 8-K and incorporated by reference herein in its entirety. The loanDepot Presentation includes references to non-GAAP financial information. Reconciliations between the non-GAAP financial measures and the comparable GAAP financial measures are available in the loanDepot Presentation. The loanDepot Presentation should be read in conjunction with the Earnings Press Release. The Company reserves the right to discontinue availability of the loanDepot Presentation from its website at any time.

The information furnished pursuant to Items 2.02 and 7.01, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, or the Exchange Act, as amended, except as specifically identified therein as being incorporated by reference.

Additionally, the submission of the information set forth in this Item 7.01 is not deemed an admission as to the materiality of any information in this Current Report on Form 8-K that is required to be disclosed solely by Regulation FD.

Item 9.01 Financial Statements and Exhibits.

(d)     Exhibits.
Exhibit NumberDescription
99.1
99.2
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)





























SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
loanDepot, Inc.
By:
/s/ David Hayes
Name: David Hayes
Title: Chief Financial Officer

Date: November 5, 2024


loanDepot announces third quarter 2024 financial results

Company achieves profitability on higher volumes, margin growth and productivity
Completes Vision 2025 and launches new strategic plan - Project North Star
Highlights:
•Revenue of $315 million, up 18% compared to the prior year. Adjusted revenue of $329 million, up 26% compared to the prior year.
•Company announces Ridgeland Mortgage joint venture with Smith Douglas Homes, expanding loanDepot’s network of partnerships with top homebuilders.
•Pull-through weighted gain on sale margin of 329 basis points, the highest margin since the beginning of the market downturn.
•Net income of $3 million and adjusted net income of $7 million, compared with prior year net loss and adjusted net loss of $34 million and $29 million, respectively, reflect the positive impact of higher revenue and cost productivity.
•Adjusted EBITDA of $64 million compared with $15 million in the prior year.
•Strong liquidity profile with cash balance of $483 million.

IRVINE, Calif., November 05, 2024 - loanDepot, Inc. (NYSE: LDI), (together with its subsidiaries, “loanDepot” or the “Company”), a leading provider of products and services that power the homeownership journey, today announced results for the third quarter ended September 30, 2024.

“Through the successful implementation of our Vision 2025 strategic program, loanDepot returned to profitability in the third quarter on modest improvements in market volumes, which resulted in higher revenue,” said President and Chief Executive Officer Frank Martell. “We are also realizing the benefits of our ongoing cost management and productivity programs, which helped to fund strategic investments in our platforms, solutions and people. These investments should help position the company for success in 2025 and beyond.

“Vision 2025, launched in July of 2022, was a critical factor in our successful navigation of unprecedented and challenging market conditions over the past three years. The launch of Project North Star builds on the strategic pillars of Vision 2025, including our focus on durable revenue growth, positive operating leverage, productivity and investments in platforms and solutions that support our customer’s homeownership journey,” added Martell.

“We are pleased that the successful completion of the strategic objectives of Vision 2025 has delivered the company’s first profitable quarter since the beginning of the market downturn in the first quarter of 2022,” said David Hayes, Chief Financial Officer. “The third quarter served as validation of our strategy as we saw a modest improvement in the mortgage market, coupled with the company’s positive operating leverage fueled our return to profitability. As we look toward 2025, we anticipate continued market challenges, but we believe that the implementation of Project North Star will allow us to capture the benefit of higher market volumes while we continue to capitalize on our ongoing investments in operational efficiency to achieve sustainable profitability in a wide variety of operating environments.”


1

Third Quarter Highlights:

Financial Summary
Three Months EndedNine Months Ended
($ in thousands except per share data)
(Unaudited)		Sep 30,
2024		Jun 30,
2024		Sep 30,
2023		Sep 30,
2024		Sep 30,
2023
Rate lock volume$9,792,423 $8,298,270 $8,295,935 $24,893,023 $25,738,036 
Pull-through weighted lock volume(1)
6,748,057 5,782,309 5,685,209 17,262,202 17,067,876 
Loan origination volume6,659,329 6,090,634 6,083,143 17,308,314 17,301,023 
Gain on sale margin(2)
3.33 %3.06 %2.74 %3.11 %2.66 %
Pull-through weighted gain on sale margin(3)
3.29 %3.22 %2.93 %3.12 %2.69 %
Financial Results
Total revenue$314,598 $265,390 $265,661 $802,772 $745,395 
Total expense311,003 342,547 305,128 961,497 949,760 
Net income (loss)
2,672 (65,853)(34,262)(134,685)(175,743)
Diluted earnings (loss) per share
$0.01 $(0.18)$(0.09)$(0.36)$(0.48)
Non-GAAP Financial Measures(4)
Adjusted total revenue$329,499 $278,007 $261,116 $838,318 $755,852 
Adjusted net income (loss)
7,077 (15,890)(29,211)(48,309)(124,417)
Adjusted EBITDA
63,742 34,575 15,253 98,820 (8,399)
(1)Pull-through weighted rate lock volume is the principal balance of loans subject to interest rate lock commitments, net of a pull-through factor for the loan funding probability.
(2)Gain on sale margin represents the total of (i) gain on origination and sale of loans, net, and (ii) origination income, net, divided by loan origination volume during period.
(3)Pull-through weighted gain on sale margin represents the total of (i) gain on origination and sale of loans, net, and (ii) origination income, net, divided by the pull-through weighted rate lock volume.
(4)See “Non-GAAP Financial Measures” for a discussion of Non-GAAP Financial Measures and a reconciliation of these metrics to their closest GAAP measure.

Year-over-Year Operational Highlights
•Non-volume related expenses decreased $11.4 million from the third quarter of 2023, primarily due to lower general and administrative expenses, offset somewhat by higher headcount related salary expenses and marketing costs.
•Accrued a net benefit of $18.9 million primarily associated with expected insurance proceeds related to the settlement of class-action litigation related to the first quarter Cybersecurity Incident.
•Incurred restructuring and impairment charges totaling $1.9 million, a decrease of $0.4 million from the third quarter of 2023.
•Pull-through weighted lock volume of $6.7 billion for the third quarter of 2024, an increase of $1.1 billion or 19% from the third quarter of 2023.
•Loan origination volume for the third quarter of 2024 was $6.7 billion, an increase of $0.6 billion or 9% from the third quarter of 2023.
•Purchase volume totaled 66% of total loans originated during the third quarter, down slightly from 71% during the third quarter of 2023.
2

•Our preliminary organic refinance consumer direct recapture rate1 increased to 71% from the third quarter 2023’s recapture rate of 69%.
•Net income for the third quarter of 2024 of $2.7 million as compared to net loss of $34.3 million in the third quarter of 2023. Net income increased primarily due to higher revenue from increased volume and pull-through weighted gain on sale margin.
•Adjusted net income for the third quarter of 2024 was $7.1 million as compared to adjusted net loss of $29.2 million for the third quarter of 2023.

Outlook for the fourth quarter of 2024
•Origination volume of between $6 billion and $8 billion.
•Pull-through weighted rate lock volume of between $5.5 billion and $7.5 billion.
•Pull-through weighted gain on sale margin of between 285 basis points and 305 basis points.

Servicing
Three Months EndedNine Months Ended
Servicing Revenue Data:
($ in thousands)
(Unaudited)
Sep 30,
2024		Jun 30,
2024		Sep 30,
2023		Sep 30,
2024		Sep 30,
2023
Due to collection/realization of cash flows$(41,498)$(42,285)$(38,502)$(119,783)$(114,777)
Due to changes in valuation inputs or assumptions(52,557)15,623 68,651 (8,690)73,422 
Realized gain (loss) on sale of servicing rights32 (3,057)5,247 (2,980)12,411 
Net gain (loss) from derivatives hedging servicing rights
37,624 (25,183)(69,353)(23,876)(96,290)
Change in fair value of servicing rights, net of hedging gains and losses(14,901)(12,617)4,545 (35,546)(10,457)
Other realized losses on sales of servicing rights (1)
(164)(5,885)(1,731)(7,290)(1,734)
Changes in fair value of servicing rights, net$(56,563)$(60,787)$(35,688)$(162,619)$(126,968)
Servicing fee income (2)
$124,133 $125,082 $120,911 $373,273 $360,329 
(1)Includes the (provision) recovery for sold MSRs and broker fees.
(2)Servicing fee income for the three and nine months ended September 30, 2023, has been adjusted to incorporate earnings credits, which were previously classified as part of net interest income.

1 We define organic refinance consumer direct recapture rate as the total unpaid principal balance (“UPB”) of loans in our servicing portfolio that are paid in full for purposes of refinancing the loan on the same property, with the Company acting as lender on both the existing and new loan, divided by the UPB of all loans in our servicing portfolio that paid in full for the purpose of refinancing the loan on the same property. The recapture rate is finalized following the publication date of this release when external data becomes available.
3

Three Months EndedNine Months Ended
Servicing Rights, at Fair Value:
($ in thousands)
(Unaudited)
Sep 30,
2024		Jun 30,
2024		Sep 30,
2023		Sep 30,
2024		Sep 30,
2023
Balance at beginning of period$1,566,463 $1,970,164 $1,998,762 $1,985,718 $2,025,136 
Additions62,039 66,115 80,068 176,529 215,229 
Sales proceeds(8,466)(439,199)(73,972)(503,777)(171,167)
Changes in fair value:
Due to changes in valuation inputs or assumptions(52,557)15,623 68,651 (8,690)73,422 
Due to collection/realization of cash flows(41,498)(42,285)(38,502)(119,783)(114,777)
Realized gains (losses) on sales of servicing rights32 (3,955)3,647 (3,984)10,811 
Total changes in fair value(94,023)(30,617)33,796 (132,457)(30,544)
Balance at end of period (1)
$1,526,013 $1,566,463 $2,038,654 $1,526,013 $2,038,654 
(1)Balances are net of $16.7 million, $16.7 million, and $14.7 million of servicing rights liability as of September 30, 2024, June 30, 2024, and September 30, 2023, respectively.

% Change
Servicing Portfolio Data:
($ in thousands)
(Unaudited)
Sep 30,
2024		Jun 30,
2024		Sep 30,
2023		Sep-24
vs
Jun-24		Sep-24
vs
Sep-23
Servicing portfolio (unpaid principal balance)$114,915,206 $114,278,549 $143,959,705 0.6 %(20.2)%
Total servicing portfolio (units)409,344 403,302 490,191 1.5 (16.5)
60+ days delinquent ($)$1,654,955 $1,457,098 $1,235,443 13.6 34.0 
60+ days delinquent (%)1.4 %1.3 %0.9 %
Servicing rights, net to UPB1.3 %1.4 %1.4 %



4






Balance Sheet Highlights
% Change

($ in thousands)
(Unaudited)
Sep 30,
2024		Jun 30,
2024		Sep 30,
2023		Sep-24
vs
Jun-24		Sep-24
vs
Sep-23
Cash and cash equivalents$483,048 $533,153 $717,196 (9.4)%(32.6)%
Loans held for sale, at fair value2,790,284 2,377,987 2,070,748 17.3 34.7 
Loans held for investment, at fair value122,066 120,287 — 1.5NM
Servicing rights, at fair value1,542,720 1,583,128 2,053,359 (2.6)(24.9)
Total assets6,417,627 5,942,777 6,078,529 8.0 5.6 
Warehouse and other lines of credit2,565,713 2,213,128 1,897,859 15.9 35.2 
Total liabilities5,825,578 5,363,839 5,309,594 8.6 9.7 
Total equity592,049 578,938 768,935 2.3 (23.0)

An increase in loans held for sale at September 30, 2024, resulted in a corresponding increase in the balance on our warehouse lines of credit. Total funding capacity with our lending partners was $3.1 billion at September 30, 2024, and $3.9 billion at September 30, 2023. Available borrowing capacity was $0.5 billion at September 30, 2024.
5






Consolidated Statements of Operations
($ in thousands except per share data)Three Months EndedNine Months Ended
Sep 30,
2024		Jun 30,
2024		Sep 30,
2023		Sep 30,
2024		Sep 30,
2023
(Unaudited)(Unaudited)
REVENUES:
Interest income$38,673 $35,052 $37,253 $104,650 $98,271 
Interest expense(39,488)(35,683)(36,770)(106,837)(96,459)
Net interest (expense) income
(815)(631)483 (2,187)1,812 
Gain on origination and sale of loans, net198,027 166,920 148,849 481,007 411,336 
Origination income, net23,675 19,494 17,740 56,775 48,088 
Servicing fee income124,133 125,082 120,911 373,273 360,329 
Change in fair value of servicing rights, net(56,563)(60,787)(35,688)(162,619)(126,968)
Other income26,141 15,312 13,366 56,523 50,798 
Total net revenues314,598 265,390 265,661 802,772 745,395 
EXPENSES:
Personnel expense161,330 141,036 141,432 436,683 440,258 
Marketing and advertising expense36,282 31,175 33,894 95,811 104,520 
Direct origination expense23,120 21,550 15,749 62,841 50,352 
General and administrative expense22,984 73,160 46,522 153,889 157,473 
Occupancy expense4,800 5,204 5,903 15,113 18,083 
Depreciation and amortization8,931 8,955 10,592 27,329 31,339 
Servicing expense8,427 8,467 8,532 25,155 19,116 
Other interest expense45,129 53,000 42,504 144,676 128,619 
Total expenses311,003 342,547 305,128 961,497 949,760 
Income (loss) before income taxes
3,595 (77,157)(39,467)(158,725)(204,365)
Income tax expense (benefit)
923 (11,304)(5,205)(24,040)(28,622)
Net income (loss)
2,672 (65,853)(34,262)(134,685)(175,743)
Net income (loss) attributable to noncontrolling interests
1,303 (33,642)(17,663)(69,588)(92,793)
Net income (loss) attributable to loanDepot, Inc.
$1,369 $(32,211)$(16,599)$(65,097)$(82,950)
Basic income (loss) per share
$0.01 $(0.18)$(0.09)$(0.36)$(0.48)
Diluted income (loss) per share
$0.01 $(0.18)$(0.09)$(0.36)$(0.48)
Weighted average shares outstanding
Basic185,385,271 182,324,046 175,962,804 183,041,489.00 173,568,986.00 
Diluted332,532,984 182,324,046 175,962,804 183,041,489.00 173,568,986.00 
6






Consolidated Balance Sheets
($ in thousands)Sep 30,
2024		Jun 30,
2024		Dec 31,
2023
(Unaudited)
ASSETS
Cash and cash equivalents$483,048 $533,153 $660,707 
Restricted cash95,593 98,057 85,149 
Loans held for sale, at fair value2,790,284 2,377,987 2,132,880 
Loans held for investment, at fair value122,066 120,287 — 
Derivative assets, at fair value68,647 59,779 93,574 
Servicing rights, at fair value1,542,720 1,583,128 1,999,763 
Trading securities, at fair value92,324 89,477 92,901 
Property and equipment, net62,974 64,631 70,809 
Operating lease right-of-use asset23,020 24,549 29,433 
Loans eligible for repurchase860,300 740,238 711,371 
Investments in joint ventures17,899 17,905 20,363 
Other assets258,752 233,586 254,098 
        Total assets$6,417,627 $5,942,777 $6,151,048 
LIABILITIES AND EQUITY
LIABILITIES:
Warehouse and other lines of credit$2,565,713 $2,213,128 $1,947,057 
Accounts payable and accrued expenses381,543 375,319 379,971 
Derivative liabilities, at fair value22,143 17,856 84,962 
Liability for loans eligible for repurchase860,300 740,238 711,371 
Operating lease liability38,538 41,896 49,192 
Debt obligations, net1,957,341 1,975,402 2,274,011 
        Total liabilities5,825,578 5,363,839 5,446,564 
EQUITY:
Total equity592,049 578,938 704,484 
Total liabilities and equity$6,417,627 $5,942,777 $6,151,048 

7







Loan Origination and Sales Data

($ in thousands)
(Unaudited)		Three Months EndedNine Months Ended
Sep 30,
2024		Jun 30,
2024		Sep 30,
2023		Sep 30,
2024		Sep 30,
2023
Loan origination volume by type:
Conventional conforming$3,254,702$3,232,905$3,158,107$8,991,282$9,375,605
FHA/VA/USDA2,564,8272,271,1042,354,6306,489,9566,371,168
Jumbo300,086229,379126,408646,787405,551
Other539,714357,246443,9981,180,2891,148,699
Total$6,659,329$6,090,634$6,083,143$17,308,314$17,301,023
Loan origination volume by purpose:
Purchase$4,378,575$4,383,145$4,337,476$12,057,993$12,403,166
Refinance - cash out1,954,0711,562,8271,660,5784,660,5804,599,564
Refinance - rate/term326,683144,66285,089589,741298,293
Total$6,659,329$6,090,634$6,083,143$17,308,314$17,301,023
Loans sold:
Servicing retained$3,818,375$4,011,399$4,175,126$10,816,315$11,396,678
Servicing released2,487,5891,893,5152,092,7625,833,9166,345,660
Total$6,305,964$5,904,914$6,267,888$16,650,231$17,742,338
    

Third Quarter Earnings Call
Management will host a conference call and live webcast today at 5:00 p.m. ET on loanDepot’s Investor Relations website, investors.loandepot.com, to discuss the Company’s earnings results.

The conference call can also be accessed by dialing (800) 715-9871, Conference ID: 9881136. Please call five minutes in advance to ensure that you are connected prior to the call. A webcast can also be accessed at https://events.q4inc.com/attendee/479196723.

A replay of the webcast will be made available on the Investor Relations website following the conclusion of the event.

For more information about loanDepot, please visit the company’s Investor Relations website: investors.loandepot.com.

8






Non-GAAP Financial Measures
To provide investors with information in addition to our results as determined by GAAP, we disclose certain non-GAAP measures to assist investors in evaluating our financial results. We believe these non-GAAP measures provide useful information to investors regarding our results of operations because each measure assists both investors and management in analyzing and benchmarking the performance and value of our business. They facilitate company-to-company operating performance comparisons by backing out potential differences caused by variations in hedging strategies, changes in valuations, capital structures (affecting interest expense on non-funding debt), taxation, the age and book depreciation of facilities (affecting relative depreciation expense), and other cost or benefit items which may vary for different companies for reasons unrelated to operating performance. These non-GAAP measures include our Adjusted Total Revenue, Adjusted Net Income (Loss), Adjusted Diluted Earnings (Loss) Per Share (if dilutive), and Adjusted EBITDA (LBITDA). We exclude from these non-GAAP financial measures the change in fair value of MSRs, gains (losses) from the sale of MSRs and related hedging gains and losses that represent realized and unrealized adjustments resulting from changes in valuation, mostly due to changes in market interest rates, and are not indicative of the Company’s operating performance or results of operation. Beginning in the second quarter of 2024, we began to include the gains (losses) from the sale of MSRs in valuation changes in servicing rights, net of hedging gains and losses to appropriately capture all valuation changes in MSRs up to and including the sales date. Prior periods have been revised to conform with this new presentation. We also exclude stock-based compensation expense, which is a non-cash expense, expenses directly related to the Cybersecurity Incident, net of expected insurance recoveries, including costs to investigate and remediate the Cybersecurity Incident, the costs of customer notifications and identity protection, professional fees, including legal expenses, litigation settlement costs, and commission guarantees, gains or losses on extinguishment of debt and disposal of fixed assets, non-cash goodwill impairment, and other impairment charges to intangible assets and operating lease right-of-use assets, as well as certain costs associated with our restructuring efforts, as management does not consider these costs to be indicative of our performance or results of operations. Adjusted EBITDA (LBITDA) includes interest expense on funding facilities, which are recorded as a component of “net interest income (expense),” as these expenses are a direct operating expense driven by loan origination volume. By contrast, interest expense on our non-funding debt is a function of our capital structure and is therefore excluded from Adjusted EBITDA (LBITDA). Adjustments for income taxes are made to reflect historical results of operations on the basis that it was taxed as a corporation under the Internal Revenue Code, and therefore subject to U.S. federal, state and local income taxes. Adjustments to Diluted Weighted Average Shares Outstanding assumes the pro forma conversion of weighted average Class C shares to Class A common stock. These non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as a substitute for revenue, net income, or any other operating performance measure calculated in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies. Some of these limitations are:

•they do not reflect every cash expenditure, future requirements for capital expenditures or contractual commitments;
•Adjusted EBITDA (LBITDA) does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payment on our debt;
•although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and Adjusted Total Revenue, Adjusted Net Income (Loss), and Adjusted EBITDA (LBITDA) do not reflect any cash requirement for such replacements or improvements; and
•they are not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows.

9






Because of these limitations, Adjusted Total Revenue, Adjusted Net Income (Loss), Adjusted Diluted Earnings (Loss) Per Share, and Adjusted EBITDA (LBITDA) are not intended as alternatives to total revenue, net income (loss), net income (loss) attributable to the Company, or Diluted Earnings (Loss) Per Share or as an indicator of our operating performance and should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations. We compensate for these limitations by using Adjusted Total Revenue, Adjusted Net Income (Loss), Adjusted Diluted Earnings (Loss) Per Share, and Adjusted EBITDA (LBITDA) along with other comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. See below for a reconciliation of these non-GAAP measures to their most comparable U.S. GAAP measures.

Reconciliation of Total Revenue to Adjusted Total Revenue
($ in thousands)
(Unaudited)
Three Months EndedNine Months Ended
Sep 30,
2024		Jun 30,
2024		Sep 30,
2023		Sep 30,
2024		Sep 30,
2023
Total net revenue$314,598 $265,390 $265,661 $802,772 $745,395 
Valuation changes in servicing rights, net of hedging gains and losses(1)
14,901 12,617 (4,545)35,546 10,457 
Adjusted total revenue$329,499 $278,007 $261,116 $838,318 $755,852 
(1)Represents the change in the fair value of servicing rights due to changes in valuation inputs or assumptions, net of gains or losses from derivatives hedging servicing rights. Beginning in the second quarter of 2024, we began to include the gains (losses) from the sale of MSRs in valuation changes in servicing rights, net of hedging gains and losses to appropriately capture all valuation changes in MSRs up to and including the sales date. Prior periods have been revised to conform with this new presentation.

Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)
($ in thousands)
(Unaudited)
Three Months EndedNine Months Ended
Sep 30,
2024		Jun 30,
2024		Sep 30,
2023		Sep 30,
2024		Sep 30,
2023
Net income (loss) attributable to loanDepot, Inc.
$1,369 $(32,211)$(16,599)$(65,097)$(82,950)
Net income (loss) from the pro forma conversion of Class C common shares to Class A common stock (1)
1,303 (33,642)(17,663)(69,588)(92,793)
Net income (loss)
2,672 (65,853)(34,262)(134,685)(175,743)
Adjustments to the (provision) benefit for income taxes(2)
(326)8,838 4,845 17,982 25,054 
Tax-effected net income (loss)
2,346 (57,015)(29,417)(116,703)(150,689)
Valuation changes in servicing rights, net of hedging gains and losses(3)
14,901 12,617 (4,545)35,546 10,457 
Stock-based compensation expense8,200 5,898 3,940 18,952 15,619 
Restructuring charges(4)
1,853 3,127 2,007 7,105 8,357 
Cybersecurity incident(5)
(18,880)26,942 — 22,760 — 
Loss (gain) on extinguishment of debt— 5,680 (1,651)5,680 (1,690)
Loss (gain) on disposal of fixed assets3 — 93 (25)1,105 
Other impairment(6)
10 1,193 129 1,202 470 
Tax effect of adjustments(7)
(1,356)(14,332)233 (22,826)(8,046)
Adjusted net income (loss)
$7,077 $(15,890)$(29,211)$(48,309)$(124,417)
10






(1)Reflects net income (loss) to Class A common stock and Class D common stock from the pro forma exchange of Class C common stock.
(2)loanDepot, Inc. is subject to federal, state and local income taxes. Adjustments to the (provision) benefit for income taxes reflect the income tax rates below, and the pro forma assumption that loanDepot, Inc. owns 100% of LD Holdings.
Three Months EndedNine Months Ended
Sep 30,
2024		Jun 30,
2024		Sep 30,
2023		Sep 30,
2024		Sep 30,
2023
Statutory U.S. federal income tax rate21.00 %21.00 %21.00 %21.00 %21.00 %
State and local income taxes (net of federal benefit)4.01 %5.27 %6.43 %4.84 %6.00 %
Effective income tax rate25.01 %26.27 %27.43 %25.84 %27.00 %
(3)Represents the change in the fair value of servicing rights due to changes in valuation inputs or assumptions, net of gains or losses from derivatives hedging servicing rights, and gains (losses) from the sale of MSRs. Beginning in the second quarter of 2024, we began to include the gains (losses) from the sale of MSRs in valuation changes in servicing rights, net of hedging gains and losses to appropriately capture all valuation changes in MSRs up to and including the sales date. Prior periods have been revised to conform with this new presentation.
(4)Reflects employee severance expense and professional services associated with restructuring efforts subsequent to the announcement of Vision 2025 in July 2022.
(5)Represents expenses directly related to the Cybersecurity Incident, net of expected insurance recoveries, including costs to investigate and remediate the Cybersecurity Incident, the costs of customer notifications and identity protection, professional fees including legal expenses, litigation settlement costs, and commission guarantees. During the three months ended September 30, 2024, the Company recorded a $20.0 million receivable for reimbursement from its insurers. During the nine months ended September 30, 2024, the Company recorded $35.0 million for an insurance reimbursement and receivable, and an accrual of $25.0 million in connection with class action litigation related to the Cybersecurity Incident.
(6)Represents lease impairment on corporate and retail locations.
(7)Amounts represent the income tax effect using the aforementioned effective income tax rates, excluding certain discrete tax items.

Reconciliation of Adjusted Diluted Weighted Average Shares Outstanding to Diluted Weighted Average Shares Outstanding
($ in thousands except per share data)
(Unaudited)
Three Months EndedNine Months Ended
Sep 30,
2024		Jun 30,
2024		Sep 30,
2023		Sep 30,
2024		Sep 30,
2023
Net income (loss) attributable to loanDepot, Inc.
$1,369 $(32,211)$(16,599)$(65,097)$(82,950)
Adjusted net income (loss)
7,077 (15,890)(29,211)(48,309)(124,417)
Share Data:
Diluted weighted average shares of Class A and Class D common stock outstanding 332,532,984 182,324,046 175,962,804 183,041,489 173,568,986 
Assumed pro forma conversion of weighted average Class C shares to Class A common stock (1)
— 142,907,533 147,171,089 142,333,213 148,741,661 
Adjusted diluted weighted average shares outstanding332,532,984325,231,579323,133,893325,374,702322,310,647 
(1)Reflects the assumed pro forma exchange and conversion of anti-dilutive Class C common shares.
11






Reconciliation of Net Income (Loss) to Adjusted EBITDA (LBITDA)
($ in thousands)
(Unaudited)
Three Months EndedNine Months Ended
Sep 30,
2024		Jun 30,
2024		Sep 30,
2023		Sep 30,
2024		Sep 30,
2023
Net income (loss)
$2,672 $(65,853)$(34,262)$(134,685)$(175,743)
Interest expense - non-funding debt (1)
45,129 53,000 42,504 144,676 128,619 
Income tax expense (benefit)
923 (11,304)(5,205)(24,040)(28,622)
Depreciation and amortization8,931 8,955 10,592 27,329 31,339 
Valuation changes in servicing rights, net of
hedging gains and losses(2)
14,901 12,617 (4,545)35,546 10,457 
Stock-based compensation expense8,200 5,898 3,940 18,952 15,619 
Restructuring charges(3)
1,853 3,127 2,007 7,105 8,357 
Cybersecurity incident(4)
(18,880)26,942 — 22,760 — 
Loss (gain) on disposal of fixed assets3 — 93 (25)1,105 
Other impairment(5)
10 1,193 129 1,202 470 
Adjusted EBITDA (LBITDA)
$63,742 $34,575 $15,253 $98,820 $(8,399)
(1)Represents other interest expense, which includes gain or loss on extinguishment of debt and amortization of debt issuance costs and debt discount, in the Company’s consolidated statements of operations.
(2)Represents the change in the fair value of servicing rights due to changes in valuation inputs or assumptions, net of gains or losses from derivatives hedging servicing rights, and gains (losses) from the sale of MSRs. Beginning in the second quarter of 2024, we began to include the gains (losses) from the sale of MSRs in valuation changes in servicing rights, net of hedging gains and losses to appropriately capture all valuation changes in MSRs up to and including the sales date. Prior periods have been revised to conform with this new presentation.
(3)Reflects employee severance expense and professional services associated with restructuring efforts subsequent to the announcement of Vision 2025 in July 2022.
(4)Represents expenses, directly related to the Cybersecurity Incident, net of expected insurance recoveries, that occurred in the first quarter of 2024, including costs to investigate and remediate the Cybersecurity Incident, the costs of customer notifications and identity protection, professional fees including legal expenses, litigation settlement costs, and commission guarantees. During the three months ended September 30, 2024, the Company recorded a $20.0 million receivable for reimbursement from its insurers. During the nine months ended September 30, 2024, the Company recorded $35.0 million for an insurance reimbursement and receivable, and an accrual of $25.0 million in connection with class action litigation related to the Cybersecurity Incident.
(5)Represents lease impairment on corporate and retail locations.

12






Forward-Looking Statements
This press release may contain "forward-looking statements," which reflect loanDepot's current views with respect to, among other things, our business strategies, including Project North Star, our progress toward run-rate profitability, ongoing cost management and productivity programs, our HELOC product, financial condition and liquidity, competitive position, industry and regulatory environment, potential growth opportunities, the effects of competition, the impact of the Cybersecurity Incident, operations and financial performance. These forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and may contain the words “outlook,” “potential,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “predict,” “estimate,” “project,” “will be,” “will continue,” “will likely result,” or other similar words and phrases or future or conditional verbs such as “will,” “may,” “might,” “should,” “would,” or “could” and the negatives of those terms. These forward-looking statements are based on current available operating, financial, economic and other information, and are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict, including but not limited to, the following: our ability to achieve the expected benefits of Project North Star and the success of other business initiatives; our ability to achieve run-rate profitability; our loan production volume; our ability to maintain an operating platform and management system sufficient to conduct our business; our ability to maintain warehouse lines of credit and other sources of capital and liquidity; impacts of cybersecurity incidents, cyberattacks, information or security breaches and technology disruptions or failures, of ours or of our third party vendors; the outcome of legal proceedings to which we are a party; our ability to reach a definitive settlement agreement related to the Cybersecurity Incident; adverse changes in macroeconomic and U.S residential real estate and mortgage market conditions, including changes in interest rates; changing federal, state and local laws, as well as changing regulatory enforcement policies and priorities; and other risks detailed in the "Risk Factors" section of loanDepot, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2023, and Quarterly Reports on Form 10-Q as well as any subsequent filings with the Securities and Exchange Commission. Therefore, current plans, anticipated actions, and financial results, as well as the anticipated development of the industry, may differ materially from what is expressed or forecasted in any forward-looking statement. loanDepot does not undertake any obligation to publicly update or revise any forward-looking statement to reflect future events or circumstances, except as required by applicable law.


About loanDepot
loanDepot (NYSE: LDI) is a leading provider of lending solutions that make the American dream of homeownership more accessible and achievable for all, especially the increasingly diverse communities of first-time homebuyers, through a broad suite of lending and real estate services that simplify one of life's most complex transactions. Since its launch in 2010, the company has been recognized as an innovator, using its industry-leading technology to deliver a superior customer experience. Our digital-first approach makes it easier, faster and less stressful to purchase or refinance a home. Today, as one of the largest non-bank lenders in the country, loanDepot and its mellohome operating unit offer an integrated platform of lending, loan servicing, real estate and home services that support customers along their entire homeownership journey. Headquartered in Southern California and with hundreds of local market offices nationwide, loanDepot’s passionate team is dedicated to making a positive difference in the lives of their customers every day.

Investor Relations Contact:
Gerhard Erdelji
Senior Vice President, Investor Relations
(949) 822-4074
gerdelji@loandepot.com

Media Contact:
Rebecca Anderson
13






Senior Vice President, Communications & Public Relations
(949) 822-4024
rebeccaanderson@loandepot.com


LDI-IR


14
3Q 2024 INVESTOR PRESENTATION November 7, 2024

 
DISCLAIMER 2 Forward-Looking Statements and Other Information This presentation may contain "forward-looking statements," which reflect loanDepot's current views with respect to, among other things, our business strategies, including Project North Star, our progress toward run-rate profitability, ongoing cost management and productivity programs, our HELOC product, financial condition and liquidity, competitive position, industry and regulatory environment, potential growth opportunities, the effects of competition, the impact of the Cybersecurity Incident, operations and financial performance. These forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and may contain the words “outlook,” “potential,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “predict,” “estimate,” “project,” “will be,” “will continue,” “will likely result,” or other similar words and phrases or future or conditional verbs such as “will,” “may,” “might,” “should,” “would,” or “could” and the negatives of those terms. These forward-looking statements are based on current available operating, financial, economic and other information, and are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict, including but not limited to, the following: our ability to achieve the expected benefits of Project North Star and the success of other business initiatives; our ability to achieve run-rate profitability; our loan production volume; our ability to maintain an operating platform and management system sufficient to conduct our business; our ability to maintain warehouse lines of credit and other sources of capital and liquidity; impacts of cybersecurity incidents, cyberattacks, information or security breaches and technology disruptions or failures, of ours or of our third party vendors; the outcome of legal proceedings to which we are a party; our ability to reach a definitive settlement agreement related to the Cybersecurity Incident; adverse changes in macroeconomic and U.S residential real estate and mortgage market conditions, including changes in interest rates; changing federal, state and local laws, as well as changing regulatory enforcement policies and priorities; and other risks detailed in the "Risk Factors" section of loanDepot, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2023, and Quarterly Reports on Form 10-Q as well as any subsequent filings with the Securities and Exchange Commission. Therefore, current plans, anticipated actions, and financial results, as well as the anticipated development of the industry, may differ materially from what is expressed or forecasted in any forward-looking statement. loanDepot does not undertake any obligation to publicly update or revise any forward-looking statement to reflect future events or circumstances, except as required by applicable law. Non-GAAP Financial Information To provide investors with information in addition to our results as determined by GAAP, we disclose certain non-GAAP measures to assist investors in evaluating our financial results. We believe these non- GAAP measures provide useful information to investors regarding our results of operations because each measure assists both investors and management in analyzing and benchmarking the performance and value of our business. They facilitate company-to-company operating performance comparisons by backing out potential differences caused by variations in hedging strategies, changes in valuations, capital structures (affecting interest expense on non-funding debt), taxation, the age and book depreciation of facilities (affecting relative depreciation expense), and other cost or benefit items which may vary for different companies for reasons unrelated to operating performance. These non-GAAP measures include our Adjusted Total Revenue, Adjusted Net Income (Loss), and Adjusted EBITDA (LBITDA). We exclude from these non-GAAP financial measures the change in fair value of MSRs, gains (losses) from the sale of MSRs and related hedging gains and losses that represent realized and unrealized adjustments resulting from changes in valuation, mostly due to changes in market interest rates, and are not indicative of the Company’s operating performance or results of operation. Beginning in the second quarter of 2024, we began to include the gains (losses) from the sale of MSRs in valuation changes in servicing rights, net of hedging gains and losses to appropriately capture all valuation changes in MSRs up to and including the sales date. Prior periods have been revised to conform with this new presentation. We also exclude stock-based compensation expense, which is a non-cash expense, expenses directly related to the Cybersecurity Incident, net of expected insurance recoveries, including costs to investigate and remediate the Cybersecurity Incident, the costs of customer notifications and identity protection, professional fees, including legal expenses and litigation settlement costs, and commission guarantees, gains or losses on extinguishment of debt and disposal of fixed assets, non-cash goodwill impairment, and other impairment charges to intangible assets and operating lease right-of-use assets, as well as certain costs associated with our restructuring efforts, as management does not consider these costs to be indicative of our performance or results of operations. Adjusted EBITDA (LBITDA) includes interest expense on funding facilities, which are recorded as a component of “net interest income (expense),” as these expenses are a direct operating expense driven by loan origination volume. By contrast, interest expense on our non- funding debt is a function of our capital structure and is therefore excluded from Adjusted EBITDA (LBITDA). Adjustments for income taxes are made to reflect historical results of operations on the basis that it was taxed as a corporation under the Internal Revenue Code, and therefore subject to U.S. federal, state and local income taxes. Adjustments to Diluted Weighted Average Shares Outstanding assumes the pro forma conversion of weighted average Class C shares to Class A common stock. These non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as a substitute for revenue, net income, or any other operating performance measure calculated in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies. Market and Industry Data This presentation also contains information regarding the loanDepot’s market and industry that is derived from third-party research and publications. That information may rely upon a number of assumptions and limitations, and the Company has not independently verified its accuracy or completeness.

 
We make the American Dream of home possible. Partnering with homeowners throughout the lifecycle of the homeownership journey. Finding An Agent Serving the Buyer First Time Homebuyer Veteran / Active Duty Move Up / Downsize Relocation Local referral Supporting The Purchase Servicing the Mortgage Optimizing the Journey Title Services Escrow/ Closing Homeowners Insurance Building Trust Continuing Customer Relationship Facilitate additional lending opportunities HELOC Closed-End Second Refinance 3 Managing the Home Solar Finance Home Security Home Renovation Solutions for Aging in Place

 
4 THIRD QUARTER FACT SHEET Financial Operational • Originations: $6.7 billion in funded volume, on the high-end third quarter 2024 guidance • Total Revenue: $314.6 million on $6.7 billion of pull-through weighted lock volume; Adjusted revenue of $329.5 million • Total Expenses: Increased by $5.9 million, or ~2% from the third quarter of 2023, primarily on higher volume and headcount related costs • 3Q24 expenses includes $18.9 million net benefit primarily associated with expected insurance proceeds related to settlement of cyber-related class-action litigation • Net Income of $2.7 million and adjusted net income of $7.1 million primarily reflects higher adjusted revenues from higher volume and gain on sale margins • Liquidity: Unrestricted cash of $483.0 million • Servicing: UPB increased from 2Q24 to $114.9 billion as portfolio units rebuild from retaining servicing on new originations • Announced Project North Star, the next step in our strategy to become the lending partner of choice for homeowners, with an emphasis on first-time homebuyers, across the lifecycle of homeownership. • Announces Ridgeland Mortgage joint venture with Smith Douglas Homes • Purchase Mix: 66% of total Originations, down from 72% second quarter 2024 due to strength in refi during the quarter • Organic Refinance Consumer Direct Recapture Rate(1): Increased to 71% for the quarter compared to 69% in third quarter 2023 • Unit Market Share: 175 basis points in third quarter 2024 vs. 181 basis points in third quarter 2023 • Purchase Unit Market Share: 130 basis points in third quarter 2024 vs. 135 basis points in second quarter 2024 and 130 basis points in third quarter 2023 (1) We define organic refinance consumer direct recapture rate as the total unpaid principal balance (“UPB”) of loans in our servicing portfolio that are paid in full for purposes of refinancing the loan on the same property, with the Company acting as lender on both the existing and new loan, divided by the UPB of all loans in our servicing portfolio that paid in full for the purpose of refinancing the loan on the same property. The recapture rate is finalized following the publication date of this presentation when external data becomes available

 
Completed Strategic Imperatives and Achieved Profitability Weather the storm & build the foundation VISION 2025 2022-2024 PROJECT NORTH STAR 2025-2027 Achieve Differentiation & Durable Business Model Pivot to first time home buyer, lifecycle relationship model supported by low-cost, high-quality operating model • Increased focus on purchase transactions while serving increasingly diverse communities across the country • Executed Growth Generating Initiatives • Centralized management of loan originations and loan fulfillment to enhance quality and effectiveness • Aggressively right sized cost structure • De-levered and initiated value creating capital allocation strategy • Made foundational investments to enable focus on first time home buyers and customer for life • Delivered profitability in 3Q24. • Become lending partner of choice for homeowners, with an emphasis on first time home buyers, through their homeownership journey • Develop and launch AI powered customer and relationship management and engagement platform • Allow customers to optimize their home buying, selling, equity optimization and home management experience • Expand purchase reach and capabilities • Expand geographic footprint and partnerships • Launch innovative solutions that form the foundation with first-time homebuyers and owners • Expand our mortgage servicing assets under management • Launch “low touch” automated data-driven loan processing workflow to drive quality and reduce turn around times • Expand operating leverage through focus on becoming lowest cost, highest quality producer to deliver consistent margins and profitability • Become employer of choice in the mortgage industry 5 PROJECT NORTH STAR

 
DIVERSE & EXPERIENCED MANAGEMENT TEAM WITH UNIQUE SKILLSETS President and CEO Dan BinowitzJeff Walsh President, LDI Mortgage Town & Country Credit Corp. Jeff DerGurahian Chief Investment Officer and Head Economist Chief Administrative Officer TJ Freeborn Chief Information Officer George Brady Frank Martell Managing Director Servicing 6 Gregg Smallwood Chief Legal Officer, Corporate Secretary Joe Grassi Chief Risk Officer Darren Graeler Chief Accounting Officer Melanie Graper Chief Human Resources Officer David Hayes Chief Financial Officer Viviana Abarca Managing Director Mortgage Lending Operations

 
loanDepot Historical Mortgage Origination Volume SCALED ORIGINATOR DELIVERING CUSTOMERS A COMPLETE SOLUTION Inception to Q3-2024 Origination CAGR: 22%(1) loanDepot Originations loanDepot Market Share $1.7 $2.3 $4.1 Total market volume ($ trillion) $4.0 $2.2 (1) CAGR includes annualized volume for 2010 Source: Historical market share based on MBA industry volume as of 10/27/2024 and historical loanDepot origination volume ($ in billions) The loanDepot Ecosystem Established Scalable Infrastructure 2010 to 2012 Diversification & Expansion 2013 to 2015 Brand, Technology & Operational Transformation 2016 to 2021 Vision 2025 2022 To 2024 • Launched with the goal of disrupting mortgage • Created scalable platform and infrastructure • Expanded in-market retail reach through acquisitions • Leveraged infrastructure to launch LD Wholesale • Strategic decision to begin retaining servicing • Launched proprietary mello® technology • Grew servicing book with long-term relationships to a half million loanDepot customers • Launched mellohome and melloInsurance • Acquired leading title insurance company • Formed mello® focused on mortgage adjacent, digital-first products and services • Repositioned the Company for long term value creation • Purpose driven sustainable lending • Simplified operational structure and increased operating leverage • Maintained strong balance sheet liquidity • Additions to executive team to position company for next era • Launch of HELOC 7 Title Insurance Escrow Services Homeowners Insurance First Mortgage Home Equity Solutions $1.5 $1.6 Project North Star 2025+ • Become the lending partner of choice for homeowners • Expand our purchase channel reach • Expand our servicing business • Launch “low touch” automated data-driven processing workflow to drive best-in-class quality • Become employer of choice in the mortgage industry $33 $45 $101 $137 $54 $23 $23 2.0% 2.0% 2.5% 3.4% 2.4% 1.4% 1.4% – 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 0 20 40 60 80 100 120 140 2018 2019 2020 2021 2022 2023 LTM Q3 '24

 
ORIGINATION GROWTH RELATIVE TO INDUSTRY (1) Calculated as LDI origination volume, in dollars, divided by total mortgage originations, in dollars, for 1-4 family homes, as measured by MBA as of 10/27/2024 Note: Pull through weighted rate lock volume is the unpaid principal balance of loans subject to interest rate lock commitments, net of a pull-through factor for the loan funding probability 8 Purchase Mix % : ($ in billions) Total Market Share (%)(1) 34% 3.0% 2.9% 34% 37% 3.1% 59% 2.4% 2.1% 70% 1.6% 76% 1.7% 71% 1.5% 73% 71% 1.5% 76% 1.5% 72% 1.2% 72% 1.4% $30 $23 $20 $12 $9 $4 $5 $6 $6 $4 $5 $6 $7 $32 $29 $22 $16 $10 $6 $5 $6 $6 $5 $5 $6 $7 299 281 213 150 203 221 226 285 293 296 274 322 329 - 50 100 150 200 250 300 350 $0 $10 $20 $30 $40 $50 $60 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Pull-Through Weighted (PTW) Lock Volume Origination Volume PTW GOS Margin, bps 66% 1.4%

 
HISTORICAL COST STRUCTURE COMPARISON ($M) 9 Salaries Other Interest Marketing Commissions Other G&A FTEs Direct Origination Expense Expenses To Note: Restructuring Charges $2.0 $3.5 $2.1 $3.1 $1.9 Loss on Disposal of Fixed Assets and Other Impairments/(Recoveries) $0.2 $0.8 ($0.0) $1.2 $0.0 Accruals for Expected Legal Settlements (1) $2.0 $3.7 $1.1 ($0.8) $0.0 (Gain) Loss on Extinguishment of Debt ($1.7) $0.0 $0.0 $5.7 $0.0 Cybersecurity Incident(2) $0.0 $0.0 $14.7 $26.9 ($18.9) Total $2.5 $8.0 $17.9 $36.1 ($17.0) (1) Excluding Cybersecurity Incident-related (2) Represents expenses, directly related to the Cybersecurity Incident, net of expected insurance recoveries, that occurred in the first quarter of 2024, including costs to investigate and remediate the Cybersecurity Incident, the costs of customer notifications and identity protection, professional fees including legal expenses, litigation settlement costs, and commission guarantees. During the three months ended September 30, 2024, the Company recorded a $20 million receivable for reimbursement from its insurers. $97 $97 $98 $96 $107 $73 $81 $82 $97 $47 $43 $45 $47 $53 $45 $34 $28 $28 $31 $36 $44 $36 $36 $45 $54 $14 $15 $17 $20 $21 4,532 4,250 4,188 4,246 4,615 N on - V ol um e Re la te d V ol um e Re la te d N on - V ol um e Re la te d V ol um e Re la te d N on - V ol um e Re la te d V ol um e Re la te d N on - V ol um e Re la te d V ol um e Re la te d N on - V ol um e Re la te d V ol um e Re la te d Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024

 
HISTORICAL SERVICING PORTFOLIO TREND 10 ($ in billions) Retention %(2) : Recapture %(1) : (1) Recapture rate as defined on page 3. (2) Portion of loan origination volume that was sold servicing retained in the period divided by total sold volume in the period. (3) At time of origination, strats for agency (FHLMC, FNMA, GNMA) portfolio only. Excludes HELOC Total Serv Exp$ to Avg. UPB $, bps: Portfolio @ 9/30/24 (3) W.A. Coupon 3.73% W.A. FICO (3) 730 W.A. LTV 74% W.A. Age (Mths) 34.3 DQ Rate 60D+ 1.4% 90D+ 1.1% Composition GSE 56.5% Gov’t 34.1% Other 9.3% 67% 69% 2.0 71% 58% 1.9 67% 59% 2.2 68% 70% 2.0 $144 $145 $142 $114 $115 143 137 138 137 133 - 20 40 60 80 100 120 140 $50 $70 $90 $110 $130 $150 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 UPB $ MSR FV, bps 61% 71% 2.6

 
$717 $661 $604 $533 $483 $4 $- $- $- $- $721 $661 $604 $533 $483 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Unrestricted Cash Unused Lines STRONG LIQUIDITY AND BALANCE SHEET 11 Liquidity Overview ($M) Debt Obligations, net to Total Equity MSR FV / Total Equity 12% 11% 10% 9% 8% Liquidity / Total Assets 2.7x 2.8x 3.1x 2.7x 2.6x Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 2.9x 3.2x 3.6x 3.4x 3.3x Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24

 
12 Q4 2024 OUTLOOK* Metric Low High Pull-through Weighted Rate Lock Volume ($bn) $5.5 $7.5 Origination Volume ($bn) $6.0 $8.0 Pull-through Weighted GOS Margin, bps 285 305 Current Market Conditions • Higher interest rates and home price appreciation adversely impacts home affordability and borrower demand • Limited supply of new and resale homes adversely impacts homebuying activity • Homeowner equity levels drives demand for cash-out refinance and home equity solutions • Industry beginning to invest in headcount and capacity on expectations of higher volumes *Q4 2024 outlook reflects current interest rate environment, seasonality, channel mix, and competitive pressures

 
APPENDIX

 
BALANCE SHEET & SERVICING PORTFOLIO HIGHLIGHTS 14 $ in MM except units and % 3Q ’24 2Q ’24 3Q ‘23 3Q’24 vs 2Q’24 3Q’24 vs 3Q’23 Cash and cash equivalents $483.0 $533.2 $717.2 (9.4%) (32.7%) Loans held for sale, at fair value 2,790.3 2,378.0 2,070.7 17.3% 34.8% Servicing rights, at fair value 1,542.7 1,583.1 2,053.4 (2.6%) (24.9%) Total assets 6,417.6 5,942.8 6,078.5 8.0% 5.6% Warehouse and other lines of credit 2,565.7 2,213.1 1,897.9 15.9% 35.2% Total liabilities 5,825.6 5,363.8 5,309.6 8.6% 9.7% Total equity 592.0 578.9 768.9 2.3% (23.0%) Servicing portfolio (unpaid principal balance) $114,915.2 $114,278.5 $143,959.7 0.6% (20.2%) Total servicing portfolio (units) 409,344 403,302 490,191 1.5% (16.5%) 60+ days delinquent ($) $1,655.0 $1,457.1 $1,235.4 13.6% 34.0% 60+ days delinquent (%) 1.4% 1.3% 0.9% N/A N/A Servicing rights, net to UPB 1.3% 1.4% 1.4% N/A N/A

 
NON-GAAP FINANCIAL RECONCILIATION 15 ($MM) 3Q ‘24 2Q ‘24 3Q ’23 Adjusted Revenue Total Net Revenue $314.6 $265.4 $265.7 Valuation changes in in Servicing Rights, Net of Hedge 14.9 12.6 (4.5) Adjusted Total Revenue $329.5 $278.0 261.1 Net (Loss) Income $2.7 ($65.9) ($34.3) Interest Expense - Non-Funding Debt 45.1 53.0 42.5 Income Tax (Benefit) Expense 0.9 (11.3) (5.2) Depreciation and Amortization 8.9 9.0 10.6 Valuation changes in in Servicing Rights, Net of Hedge 14.9 $12.6 (4.5) Stock-Based Compensation Expense 8.2 5.9 3.9 Restructuring Charges 1.9 3.1 2.0 Cyber Incident (1) (18.9) 26.9 0.0 (Gain) Loss on Disposal of Fixed Assets 0.0 0.0 0.1 Other impairment (recovery) 0.0 1.2 0.1 Adjusted EBITDA $63.7 $34.6 $15.3 (1) Represents expenses directly related to the Cybersecurity Incident, net of expected insurance recoveries, including costs to investigate and remediate the Cybersecurity Incident, the costs of customer notifications and identity protection, professional fees including legal expenses, litigation settlement costs, and commission guarantees. During the three months ended September 30, 2024, the Company recorded a $20.0 million receivable for reimbursement from its insurers. During the nine months ended September 30, 2024, the Company recorded $35.0 million for an insurance reimbursement and receivable, and an accrual of $25.0 million in connection with class action litigation related to the Cybersecurity Incident.

 
NON-GAAP FINANCIAL RECONCILIATION (CONT’D) 16 ($MM) 3Q ‘24 2Q ’24 3Q ’23 Net Income (Loss) $2.7 ($65.9) ($34.3) Adjustments to Income Taxes (0.3) 8.8 4.8 Tax-Effected Net Income (Loss) $2.3 ($57.0) ($29.4) Valuation changes in in Servicing Rights, Net of Hedge 14.9 12.6 (4.5) Stock-Based Compensation Expense 8.2 5.9 3.9 Restructuring Charges 1.9 3.1 2.0 Cyber Incident (18.9) 26.9 0.0 (Gain) Loss on Extinguishment of Debt 0.0 5.7 (1.7) (Gain) Loss on Disposal of Fixed Assets 0.0 0.0 0.1 Other (Recovery) Impairment 0.0 1.2 0.1 Tax Effect of Adjustments (1.4) (14.3) 0.2 Adjusted Net Income (Loss) $7.1 ($15.9) ($29.2)

 
v3.24.3
Cover
Nov. 05, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 05, 2024
Entity Registrant Name loanDepot, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-40003
Entity Tax Identification Number 85-3948939
Entity Address, Address Line One 6561 Irvine Center Drive
Entity Address, City or Town Irvine
Entity Address, State or Province CA
Entity Address, Postal Zip Code 92618
City Area Code (888)
Local Phone Number 337-6888
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Class A Common Stock, $0.001 Par Value
Trading Symbol LDI
Security Exchange Name NYSE
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001831631
loanDepot (NYSE:LDI)
Historical Stock Chart
From Nov 2024 to Dec 2024 Click Here for more loanDepot Charts.
loanDepot (NYSE:LDI)
Historical Stock Chart
From Dec 2023 to Dec 2024 Click Here for more loanDepot Charts.