loanDepot achieved a pull-through weighted gain on sale margin of 322 basis points, marking its highest level since the market downturn began in 2022.
In its earnings report on Tuesday evening, loanDepot revealed that its adjusted revenue for Q2 2024 reached $278 million, the highest since the downturn started.
Despite the positive revenue, the lender, based in Irvine, California, reported a net loss of $66 million, which included $27 million in non-operational expenses stemming from a cybersecurity incident in the first quarter of 2024.
“By most metrics, our performance in the second quarter was the strongest we’ve seen since the market downturn that began in early 2022,” commented Frank Martell, loanDepot’s President and CEO. “As we approach the final stages of our Vision 2025 strategic plan, initiated in July 2022, we have significantly enhanced our operational outcomes, setting the stage for long-term success. Our positive results were fueled by profitable growth in adjusted revenue and a steadfast focus on controlling costs.”
In Q2, the company successfully completed the tender and exchange of $500 million in corporate notes that were set to mature in late 2025, reducing its principal debt by $137 million and extending the maturity date to 2027.
Chief Financial Officer David Hayes stated, “Through the debt exchange, we capitalized on favorable market conditions by monetizing around $29 billion of unpaid principal balance of our mortgage servicing rights, ending the quarter with a robust balance sheet, including $533 million in cash.”
As loanDepot’s $120 million Vision 2025 supplemental productivity initiative concludes, the company is expected to unveil a new strategic plan in its Q3 earnings report.
“We are making critical, strategic investments in our workforce, product offerings, and technology platforms,” Martell added. “These investments are positioning us to seize opportunities to grow market share and profitability as market volumes are expected to rise in 2025. Furthermore, we are well-positioned to leverage the record levels of home equity available for debt consolidation and home improvement, as well as the anticipated increase in rate and term refinance activity as mortgage rates are expected to decline. At loanDepot, we believe home is everything, and our expanding team of professionals offers a comprehensive suite of products and services that support the American dream.”
