During its earnings call Tuesday evening, loanDepot reported an adjusted revenue of $278 million for the second quarter of 2024 – the highest level since the beginning of the market downturn.
The Irvine-based lender noted a net loss of $66 million, including one-time, non-operational costs of $27 million related to a cybersecurity incident in Q1 2024.
“During the second quarter, by most measures, we delivered our strongest operational results since the beginning of the market downturn that began in the first quarter of 2022,” said loanDepot President and CEO Frank Martell. “As we near the completion of our Vision 2025 strategic plan, which was launched in July 2022, we have dramatically improved our operational results while positioning the company for long-term success. Our positive operational momentum was driven by profitable adjusted revenue growth as well as our ongoing commitment to cost discipline.”
During Q2, the company successfully completed the tender and exchange of $500 million of corporate notes coming due in the fourth quarter of 2025. This reduced loanDepot’s principal debt balance by $137 million, extending the maturity to 2027.
“As part of the debt exchange, we took advantage of strong market conditions and monetized approximately $29 billion of unpaid principal balance of our mortgage servicing rights to end the quarter with a strong balance sheet, including $533 million in cash,” Chief Financial Officer David Hayes said.
As the lender’s $120 million Vision 2025 supplemental productivity program comes to an end, company officials are expected to announce a new strategic plan during their Q3 earnings release.
“Importantly, we continue to make critical and strategic investments in our people, products, and technology platforms. We believe these investments position the company to capture the opportunities to expand market share and profitability presented by higher forecasted market volumes in 2025,” Martell said. “In addition, we believe the company is increasingly well positioned to capitalize on the record levels of home equity available to homeowners for debt consolidation and home improvement, as well as the inevitable increase in rate and term refinance volume as mortgage interest rates are expected to decrease. At loanDepot, we believe home means everything and our expanding team of professionals delivers a complete suite of products and services that fuel the American dream.”
