FALSE000183163100018316312024-08-062024-08-06

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): August 6, 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 August 6, 2024, loanDepot, Inc. (the "Company") issued a press release announcing its results for the three and six months ended June 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 August 6, 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 six months ended June 30, 2024 at 5:00 p.m. Eastern time on August 6, 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: August 6, 2024

logo-color.jpg
loanDepot announces second quarter 2024 financial results

Strong operational results highlighted by expanded market share and gain on sale margins; continues to invest in key growth initiatives and platforms.
Highlights:
•Revenue of $265 million as higher origination and servicing revenues partially offset negative net change in fair value of servicing rights.
•Adjusted revenue of $278 million, the highest level since the beginning of the market downturn.
•Pull-through weighted gain on sale margin of 322 basis points, the highest margin since the beginning of the market downturn.
•Completed $120 million Vision 2025 supplemental productivity program.
•Net loss of $66 million, including non-operational charges of $27 million related to the first quarter 2024 cybersecurity incident and $6 million loss on the extinguishment of debt related to the successful tender exchange.
•Adjusted net loss decreased 56% to $16 million compared to second quarter of 2023.
•Adjusted EBITDA of $35 million, the highest level since the beginning of market the downturn.
•Completed tender exchange of 2025 unsecured notes, extending maturity and reducing outstanding corporate debt by $137 million.
•Reached tentative agreement to settle class action litigation related to cybersecurity incident.
•Strong liquidity profile with cash balance of $533 million.

IRVINE, Calif., August 06, 2024 - loanDepot, Inc. (NYSE: LDI), (together with its subsidiaries, “loanDepot” or the “Company”), a leading provider of lending solutions that make the American dream of homeownership more accessible and achievable for all, today announced results for the second quarter ended June 30, 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 President and Chief Executive Officer 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.

“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. This quarter, the company continued to build our in-market retail franchise, which contributed to our expanded margins and market share growth.

“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.”

Added Chief Financial Officer David Hayes, “We are laser focused on our commitment to profitability and continue to work with discipline to grow revenue and manage costs. During the second quarter we successfully delivered the $120 million benefit targeted by our supplemental productivity program.

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“As we approach a return to sustainable profitability, the second quarter was marked by two very significant milestones. The first is our successful tender and exchange of $500 million of corporate notes coming due in the fourth quarter of 2025. The net result of the exchange was to reduce the principal balance of our debt by $137 million and extend 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. Second, we also reached a settlement in principle related to the class-action litigation attributable to the January cyber incident. We are presently negotiating the terms of a settlement agreement, and plaintiffs will likely submit it for court approval later in the third quarter. We believe the settlement will remove significant uncertainty for our stakeholders going forward.”


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Second Quarter Highlights:

Financial Summary
Three Months EndedSix Months Ended
($ in thousands except per share data)
(Unaudited)		Jun 30,
2024		Mar 31,
2024		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
Rate lock volume$8,298,270 $6,802,330 $8,973,666 $15,100,600 $17,442,101 
Pull-through weighted lock volume(1)
5,782,309 4,731,836 6,057,179 10,514,145 11,382,667 
Loan origination volume6,090,634 4,558,351 6,273,543 10,648,985 11,217,880 
Gain on sale margin(2)
3.06 %2.84 %2.75 %2.97 %2.61 %
Pull-through weighted gain on sale margin(3)
3.22 %2.74 %2.85 %3.01 %2.57 %
Financial Results
Total revenue$265,390 $222,785 $271,833 $488,175 $479,734 
Total expense342,547 307,950 330,148 650,496 644,632 
Net loss
(65,853)(71,505)(49,759)(137,357)(141,480)
Diluted loss per share
$(0.18)$(0.19)$(0.13)$(0.37)$(0.38)
Non-GAAP Financial Measures(4)
Adjusted total revenue$278,007 $230,816 $268,736 $508,820 $494,735 
Adjusted net loss
(15,890)(39,499)(36,120)(55,384)(95,043)
Adjusted EBITDA
34,575 503 4,070 35,078 (23,411)
(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 increased $11.5 million from the second quarter of 2023, primarily due to costs related to the January 2024 cyber incident (“Cybersecurity Incident”) and debt exchange, offset somewhat by lower headcount related salary expenses and marketing costs.
•Incurred $26.9 million of expenses related to the first quarter Cybersecurity Incident, including accrual to settle outstanding legal claims against the company.
•Incurred restructuring and impairment charges totaling $4.3 million, a decrease of $1.7 million from the second quarter of 2023.
•Pull-through weighted lock volume of $5.8 billion for the second quarter of 2024, a decrease of $0.3 billion or 5% from the second quarter of 2023.
•Loan origination volume for the second quarter of 2024 was $6.1 billion, a decrease of $0.2 billion or 3% from the second quarter of 2023.
•Purchase volume totaled 72% of total loans originated during the second quarter, down slightly from 73% during the second quarter of 2023.
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•Our preliminary organic refinance consumer direct recapture rate1 increased to 70% from the second quarter 2023’s refinance rate of 68%.
•Net loss for the second quarter of 2024 of $65.9 million as compared to net loss of $49.8 million in the second quarter of 2023. Net loss increased primarily due to higher expenses, which included costs related to the first quarter 2024 cyber incident and charges related to the debt exchange transaction.
•Adjusted net loss for the second quarter of 2024 was $15.9 million as compared to adjusted net loss of $36.1 million for the second quarter of 2023.

Outlook for the third quarter of 2024
•Origination volume of between $5 billion and $7 billion.
•Pull-through weighted rate lock volume of between $5 billion and $7 billion.
•Pull-through weighted gain on sale margin of between 280 basis points and 300 basis points.

Servicing
Three Months EndedSix Months Ended
Servicing Revenue Data:
($ in thousands)
(Unaudited)
Jun 30,
2024		Mar 31,
2024		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
Due to collection/realization of cash flows$(42,285)$(35,999)$(41,619)$(78,285)$(76,276)
Due to changes in valuation inputs or assumptions15,623 28,244 26,138 43,867 4,771 
Realized (loss) gain on sale of servicing rights(3,057)44 6,973 (3,013)7,164 
Net loss from derivatives hedging servicing rights
(25,183)(36,319)(30,014)(61,499)(26,936)
Change in fair value of servicing rights, net of hedging gains and losses(12,617)(8,031)3,097 (20,645)(15,001)
Other realized (losses) gains on sales of servicing rights (1)
(5,885)(1,240)48 (7,126)(3)
Changes in fair value of servicing rights, net$(60,787)$(45,270)$(38,474)$(106,056)$(91,280)
Servicing fee income (2)
$125,082 $124,059 $119,529 $249,140 $239,418 
(1)Includes the (provision) recovery for sold MSRs and broker fees.
(2)Servicing fee income for the three months ended June 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.
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Three Months EndedSix Months Ended
Servicing Rights, at Fair Value:
($ in thousands)
(Unaudited)
Jun 30,
2024		Mar 31,
2024		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
Balance at beginning of period$1,970,164 $1,985,718 $2,016,568 $1,985,718 $2,025,136 
Additions66,115 48,375 75,866 114,491 135,161 
Sales proceeds(439,199)(56,113)(85,164)(495,312)(97,194)
Changes in fair value:
Due to changes in valuation inputs or assumptions15,623 28,244 26,138 43,867 4,771 
Due to collection/realization of cash flows(42,285)(35,999)(41,619)(78,285)(76,276)
Realized (losses) gains on sales of servicing rights(3,955)(61)6,973 (4,016)7,164 
Total changes in fair value(30,617)(7,816)(8,508)(38,434)(64,341)
Balance at end of period (1)
$1,566,463 $1,970,164 $1,998,762 $1,566,463 $1,998,762 
(1)Balances are net of $16.7 million, $15.8 million, and $13.3 million of servicing rights liability as of June 30, 2024, March 31, 2024, and June 30, 2023, respectively.

% Change
Servicing Portfolio Data:
($ in thousands)
(Unaudited)
Jun 30,
2024		Mar 31,
2024		Jun 30,
2023		Jun-24
vs
Mar-24		Jun-24
vs
Jun-23
Servicing portfolio (unpaid principal balance)$114,278,549 $142,337,251 $142,479,870 (19.7)%(19.8)%
Total servicing portfolio (units)403,302 491,871 482,266 (18.0)(16.4)
60+ days delinquent ($)$1,457,098 $1,445,489 $1,192,377 0.8 22.2 
60+ days delinquent (%)1.3 %1.0 %0.8 %
Servicing rights, net to UPB1.4 %1.4 %1.4 %



5






Balance Sheet Highlights
% Change

($ in thousands)
(Unaudited)
Jun 30,
2024		Mar 31,
2024		Jun 30,
2023		Jun-24
vs
Mar-24		Jun-24
vs
Jun-23
Cash and cash equivalents$533,153 $603,663 $719,073 (11.7)%(25.9)%
Loans held for sale, at fair value2,377,987 2,300,058 2,256,551 3.4 5.4 
Loans held for investment, at fair value120,287 — — NMNM
Servicing rights, at fair value1,583,128 1,985,948 2,012,049 (20.3)(21.3)
Total assets5,942,777 6,193,270 6,203,504 (4.0)(4.2)
Warehouse and other lines of credit2,213,128 2,069,619 2,046,208 6.9 8.2 
Total liabilities5,363,839 5,555,928 5,406,160 (3.5)(0.8)
Total equity578,938 637,342 797,344 (9.2)(27.4)

An increase in loans held for sale at June 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 June 30, 2024, and $3.9 billion at June 30, 2023. Available borrowing capacity was $0.8 billion at June 30, 2024.
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Consolidated Statements of Operations
($ in thousands except per share data)Three Months EndedSix Months Ended
Jun 30,
2024		Mar 31,
2024		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
(Unaudited)(Unaudited)
REVENUES:
Interest income$35,052 $30,925 $33,060 $65,977 $61,017 
Interest expense(35,683)(31,666)(32,001)(67,349)(59,689)
Net interest (expense) income
(631)(741)1,059 (1,372)1,328 
Gain on origination and sale of loans, net166,920 116,060 154,335 282,981 262,487 
Origination income, net19,494 13,606 18,332 33,099 30,349 
Servicing fee income125,082 124,059 119,529 249,140 239,418 
Change in fair value of servicing rights, net(60,787)(45,270)(38,474)(106,056)(91,280)
Other income15,312 15,071 17,052 30,383 37,432 
Total net revenues265,390 222,785 271,833 488,175 479,734 
EXPENSES:
Personnel expense141,036 134,318 157,799 275,354 298,826 
Marketing and advertising expense31,175 28,354 34,712 59,529 70,626 
Direct origination expense21,550 18,171 17,224 39,721 34,603 
General and administrative expense73,160 57,746 54,817 130,905 110,951 
Occupancy expense5,204 5,110 6,099 10,314 12,180 
Depreciation and amortization8,955 9,443 10,721 18,398 20,747 
Servicing expense8,467 8,261 5,750 16,728 10,583 
Other interest expense53,000 46,547 43,026 99,547 86,116 
Total expenses342,547 307,950 330,148 650,496 644,632 
Loss before income taxes
(77,157)(85,165)(58,315)(162,321)(164,898)
Income tax benefit
(11,304)(13,660)(8,556)(24,964)(23,418)
Net loss
(65,853)(71,505)(49,759)(137,357)(141,480)
Net loss attributable to noncontrolling interests
(33,642)(37,250)(26,316)(70,891)(75,130)
Net loss attributable to loanDepot, Inc.
$(32,211)$(34,255)$(23,443)$(66,466)$(66,350)
Basic loss per share
$(0.18)$(0.19)$(0.13)$(0.37)$(0.38)
Diluted loss per share
$(0.18)$(0.19)$(0.13)$(0.37)$(0.38)
Weighted average shares outstanding
Basic182,324,046 181,407,353 173,908,030 181,863,195.00 172,358,924.00 
Diluted182,324,046 324,679,090 173,908,030 181,863,195.00 172,358,924.00 
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Consolidated Balance Sheets
($ in thousands)Jun 30,
2024		Mar 31,
2024		Dec 31,
2023
(Unaudited)
ASSETS
Cash and cash equivalents$533,153 $603,663 $660,707 
Restricted cash98,057 74,346 85,149 
Loans held for sale, at fair value2,377,987 2,300,058 2,132,880 
Loans held for investment, at fair value120,287 — — 
Derivative assets, at fair value59,779 64,055 93,574 
Servicing rights, at fair value1,583,128 1,985,948 1,999,763 
Trading securities, at fair value89,477 91,545 92,901 
Property and equipment, net64,631 66,160 70,809 
Operating lease right-of-use asset24,549 27,409 29,433 
Loans eligible for repurchase740,238 748,476 711,371 
Investments in joint ventures17,905 17,849 20,363 
Other assets233,586 213,761 254,098 
        Total assets$5,942,777 $6,193,270 $6,151,048 
LIABILITIES AND EQUITY
LIABILITIES:
Warehouse and other lines of credit$2,213,128 $2,069,619 $1,947,057 
Accounts payable and accrued expenses375,319 367,457 379,971 
Derivative liabilities, at fair value17,856 11,233 84,962 
Liability for loans eligible for repurchase740,238 748,476 711,371 
Operating lease liability41,896 45,324 49,192 
Debt obligations, net1,975,402 2,313,819 2,274,011 
        Total liabilities5,363,839 5,555,928 5,446,564 
EQUITY:
Total equity578,938 637,342 704,484 
Total liabilities and equity$5,942,777 $6,193,270 $6,151,048 

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Loan Origination and Sales Data

($ in thousands)
(Unaudited)		Three Months EndedSix Months Ended
Jun 30,
2024		Mar 31,
2024		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
Loan origination volume by type:
Conventional conforming$3,311,617$2,545,203$3,323,678$5,856,820$6,217,499
FHA/VA/USDA2,271,1041,654,0252,337,9463,925,1294,016,537
Jumbo150,66675,794148,077226,460279,143
Other357,247283,329463,842640,576704,701
Total$6,090,634$4,558,351$6,273,543$10,648,985$11,217,880
Loan origination volume by purpose:
Purchase$4,383,145$3,296,273$4,552,919$7,679,418$8,065,690
Refinance - cash out1,562,8271,143,6821,614,7472,706,5092,938,986
Refinance - rate/term144,662118,396105,877263,058213,204
Total$6,090,634$4,558,351$6,273,543$10,648,985$11,217,880
Loans sold:
Servicing retained$4,011,399$2,986,541$3,943,845$6,997,940$7,221,552
Servicing released1,893,5151,452,8122,134,0243,346,3274,252,898
Total$5,904,914$4,439,353$6,077,869$10,344,267$11,474,450
    

Second 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/410319294.

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.

9






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.

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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 EndedSix Months Ended
Jun 30,
2024		Mar 31,
2024		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
Total net revenue$265,390 $222,785 $271,833 $488,175 $479,734 
Valuation changes in servicing rights, net of hedging gains and losses(1)
12,617 8,031 (3,097)20,645 15,001 
Adjusted total revenue$278,007 $230,816 $268,736 $508,820 $494,735 
(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 EndedSix Months Ended
Jun 30,
2024		Mar 31,
2024		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
Net loss attributable to loanDepot, Inc.
$(32,211)$(34,255)$(23,443)$(66,466)$(66,350)
Net loss from the pro forma conversion of Class C common shares to Class A common stock (1)
(33,642)(37,250)(26,316)(70,891)(75,130)
Net loss
(65,853)(71,505)(49,759)(137,357)(141,480)
Adjustments to the benefit for income taxes(2)
8,838 9,774 6,916 18,616 20,120 
Tax-effected net loss
(57,015)(61,731)(42,843)(118,741)(121,360)
Valuation changes in servicing rights, net of hedging gains and losses(3)
12,617 8,031 (3,097)20,645 15,001 
Stock-based compensation expense5,898 4,855 5,754 10,753 11,679 
Restructuring charges(4)
3,127 2,124 4,544 5,252 6,591 
Cybersecurity incident(5)
26,942 14,698 — 41,640 — 
Loss (gain) on extinguishment of debt5,680 — (39)5,680 (39)
Loss (gain) on disposal of fixed assets— (29)751 (28)1,012 
Other (recovery) impairment(6)
1,193 (1)686 1,192 341 
Tax effect of adjustments(7)
(14,332)(7,446)(1,876)(21,777)(8,268)
Adjusted net loss
$(15,890)$(39,499)$(36,120)$(55,384)$(95,043)
(1)Reflects net loss to Class A common stock and Class D common stock from the pro forma exchange of Class C common stock.
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(2)loanDepot, Inc. is subject to federal, state and local income taxes. Adjustments to the income tax benefit reflect the income tax rates below, and the pro forma assumption that loanDepot, Inc. owns 100% of LD Holdings.
Three Months EndedSix Months Ended
Jun 30,
2024		Mar 31,
2024		Jun 30,
2023		Jun 30,
2024		Jun 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)5.27 %5.24 %5.28 %5.26 %5.78 %
Effective income tax rate26.27 %26.24 %26.28 %26.26 %26.78 %
(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 quarter ended June 30, 2024, the Company recorded an accrual of $25 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 EndedSix Months Ended
Jun 30,
2024		Mar 31,
2024		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
Net loss attributable to loanDepot, Inc.
$(32,211)$(34,255)$(23,443)$(66,466)$(66,350)
Adjusted net loss
(15,890)(39,499)(36,120)(55,384)(95,043)
Share Data:
Diluted weighted average shares of Class A and Class D common stock outstanding 182,324,046 324,679,090 173,908,030 181,863,195 172,358,924 
Assumed pro forma conversion of weighted average Class C shares to Class A common stock (1)
142,803,534 — 148,597,745 142,863,473 149,535,576 
Adjusted diluted weighted average shares outstanding325,127,580324,679,090322,505,775324,726,668321,894,500 
(1)Reflects the assumed pro forma exchange and conversion of anti-dilutive Class C common shares.
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Reconciliation of Net Income (Loss) to Adjusted EBITDA (LBITDA)
($ in thousands)
(Unaudited)
Three Months EndedSix Months Ended
Jun 30,
2024		Mar 31,
2024		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
Net loss
$(65,853)$(71,505)$(49,759)$(137,357)$(141,480)
Interest expense - non-funding debt (1)
53,000 46,547 43,026 99,547 86,116 
Income tax benefit
(11,304)(13,660)(8,556)(24,964)(23,418)
Depreciation and amortization8,955 9,443 10,721 18,398 20,747 
Valuation changes in servicing rights, net of
hedging gains and losses(2)
12,617 8,031 (3,097)20,645 15,001 
Stock-based compensation expense5,898 4,855 5,754 10,753 11,679 
Restructuring charges(3)
3,127 2,124 4,544 5,252 6,591 
Cybersecurity incident(4)
26,942 14,698 — 41,640 — 
Loss (gain) on disposal of fixed assets— (29)751 (28)1,012 
Other (recovery) impairment1,193 (1)686 1,192 341 
Adjusted EBITDA (LBITDA)
$34,575 $503 $4,070 $35,078 $(23,411)
(1)Represents other interest expense, which includes gain or loss on extinguishment of debt and amortization of debt issuance costs, 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 quarter ended June 30, 2024, the Company recorded an accrual of $25 million in connection with class action litigation related to the Cybersecurity Incident.

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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 the Vision 2025 plan, including our expanded productivity program, our progress toward run-rate profitability, 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, including but not limited to, the following: our ability to achieve the expected benefits of our Vision 2025 plan and the success of our cost-reduction initiatives, such as the expanded productivity program; 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 increases in interest rate levels; 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, which are difficult to predict. Therefore, current plans, anticipated actions, 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

14






Media Contact:
Rebecca Anderson
Senior Vice President, Communications & Public Relations
(949) 822-4024
rebeccaanderson@loandepot.com


LDI-IR


15
2Q 2024 INVESTOR PRESENTATION August 6, 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 the Vision 2025 plan, including our expanded productivity program, our progress toward run-rate profitability, 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, including but not limited to, the following: our ability to achieve the expected benefits of our Vision 2025 plan and the success of our cost-reduction initiatives, such as the expanded productivity program; 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 increases in interest rate levels; 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, which are difficult to predict. Therefore, current plans, anticipated actions, 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.

 
3 SECOND QUARTER FACT SHEET Financial Operational • Originations: $6.1 billion in funded volume, in line with second quarter 2024 guidance • Total Revenue: $265.4 million on $5.8 billion of pull-through weighted lock volume; Adjusted revenue of $278.0 million, the highest since market downturn • Total Expenses: Increased by $12.4 million, or 4% from the second quarter of 2023 • Includes $36.1 million in non-operating expenses primarily related to cyber incident and debt exchange, somewhat offset by lower headcount related salary expenses and marketing costs • Net Loss of $(65.9) million and adjusted net loss of $(16.9) million primarily reflects higher non-operating expenses • Liquidity: Unrestricted cash of $533.1 million • Servicing: Decrease in UPB to $114.3 billion at end of quarter, due to opportunistically monetizing $28.7 billion UPB of portfolio • Neared completion of our Vision 2025 strategy to address current and anticipated market conditions and position company for long- term value creation • Completed $120 million Vision 2025 supplemental productivity program • Purchase Mix: 72% of total Originations, consistent with first quarter 2024 • Organic Refinance Consumer Direct Recapture Rate(1): Increased to 70% for the quarter compared to 68% in second quarter 2023 • Unit Market Share: 189 basis points in second quarter 2024 vs. 172 basis points in second quarter 2023 • Purchase Unit Market Share: 147 basis points in second quarter 2024 vs. 128 basis points in first quarter 2024 and 166 basis points in second quarter 2023 • Completed tender exchange of 2025 unsecured notes, extending maturity and reducing corporate debt by $137 million • Reached settlement in principle related to class-action litigation attributable to January 2024 Cybersecurity Incident (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

 
VISION 2025 STRATEGIC PLAN OUR PROGRESS AGAINST THE FOUR PILLARS Focus on Purchase Transactions and Better Serving First-Time and Diverse Buyers ✓ Reduced annualized non- volume expenses by over $660 million by the end of 2023 ✓ Announced and subsequently completed a supplemental $120 million productivity program in addition to 2023 savings ✓ Lower headcount ✓ Real estate consolidation (Irvine, Scottsdale/Chandler, Victor) ✓ Reduced vendor spending (fewer vendors, discounts pursued) ✓ Audited spending policy to ensure smart spending ✓ Successful debt refinance Align our Cost Structure to the Size of the Market ✓ Launched/expanding home equity products ✓ Direct Lending customer acquisition re-platform ✓ Launched melloNow digital underwriting engine ✓ Completed in-house migration of servicing business ✓ Formed new joint venture (NHC) ✓ Exploring potential acquisitions in Retail channel ✓ Hired chief risk officer with focus on improving quality ✓ Investments in mellohome (added solar and home improvement, new leader) ✓ Upgrading Empower Invest in Growth-Generating Initiatives and our Platform to Support Operating Leverage and Quality ✓ Ongoing work to streamline for efficiency and quality ✓ Consolidated all mortgage originations under Jeff Walsh ✓ Consolidated all operations under Viviana Abarca ✓ Folded HELOC organization into Direct Lending channel ✓ Reduced redundancies on executive team ✓ Reduced layers within the company Optimize and Simplify Organizational Structure ✓ New products like AccessONE+ and AccessZERO ✓ Investment in VA lending (new VA Council, National VP for VA Lending, VA Master Class) ✓ Building Reverse mortgage team ✓ mellohome Grand Slam promotion ✓ Strategic pivot to consumer education under new CMO ✓ FTHB web portal ✓ Spanish language application

 
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 5 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 Q2-2024 Origination CAGR: 22%(1) loanDepot Originations loanDepot Market Share $1.7 $2.3 $4.1 Total market volume ($ trillion) $4.0 $2.2 (1) CAGR includes annualized volume for 2010 Source: Historical market share based on MBA industry volume as of 7/19/2024 and historical loanDepot origination volume ($ 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 & Beyond 2022 + • 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 • Repositioning the Company for long term value creation • Purpose driven sustainable lending • Simplifying operational structure and increasing operating leverage • Maintaining strong balance sheet liquidity • Additions to executive team to position company for next era • Launch of HELOC 6 Title Insurance Escrow Services Homeowners Insurance First Mortgage Home Equity Solutions $1.6 $1.6 $33 $45 $101 $137 $54 $23 $22 2.0% 2.0% 2.5% 3.4% 2.4% 1.4% 1.3% – 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 0 20 40 60 80 100 120 140 2018 2019 2020 2021 2022 2023 LTM Q2 '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 7/19/2024 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 7 Purchase Mix % : ($ in billions) Total Market Share (%)(1) 3.0% 30% 34% 3.0% 2.9% 34% 37% 3.1% 59% 2.4% 2.1% 70% 1.6% 76% 1.5% 71% 1.4% 73% 71% 1.4% 76% 1.3% 72% 1.2% $30 $30 $23 $20 $12 $9 $4 $5 $6 $6 $4 $5 $6 $34 $32 $29 $22 $16 $10 $6 $5 $6 $6 $5 $5 $6 264 299 281 213 150 203 221 226 285 293 296 274 322 - 50 100 150 200 250 300 350 $0 $10 $20 $30 $40 $50 $60 Q2 2021A Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Pull-Through Weighted (PTW) Lock Volume Origination Volume PTW GOS Margin, bps 72% 1.4%

 
HISTORICAL COST STRUCTURE COMPARISON ($M) 8 Salaries Other Interest Marketing Commissions Other G&A FTEs Direct Origination Expense Expenses To Note: Restructuring Charges $4.5 $2.0 $3.5 $2.1 $3.1 Loss on Disposal of Fixed Assets and Other Impairments/(Recoveries) $1.4 $0.2 $0.8 ($0.0) $1.2 Accruals for Expected Legal Settlements (1) $7.5 $2.0 $3.7 $1.1 ($0.8) (Gain) Loss on Extinguishment of Debt ($0.0) ($1.7) $0.0 $0.0 $5.7 Cybersecurity Incident(2) $0.0 $0.0 $0.0 $14.7 $26.9 Total $13.4 $2.5 $8.0 $17.9 $36.1 $109 $97 $97 $98 $96 $79 $73 $81 $82 $97 $43 $43 $45 $47 $53 $35 $34 $28 $28 $31 $49 $44 $36 $36 $45 $16 $14 $15 $17 $20 4,683 4,532 4,250 4,188 4,246 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 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 (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 quarter ended June 30, 2024, the Company recorded an accrual of $25 million in connection with class action litigation related to the Cybersecurity Incident.

 
HISTORICAL SERVICING PORTFOLIO TREND 9 ($ 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 portfolio only. Excludes HELOC Total Serv Exp$ to Avg. UPB $, bps: Portfolio @ 6/30/24 (3) W.A. Coupon 3.66% W.A. FICO (3) 730 W.A. LTV 74% W.A. Age (Mths) 32.2 DQ Rate 60D+ 1.3% 90D+ 1.0% Composition GSE 57.0% Gov’t 33.7% Other 9.3% 65% 68% 1.7 67% 69% 2.0 71% 58% 1.9 67% 59% 2.2 $142 $144 $145 $142 $114 140 143 137 138 137 - 20 40 60 80 100 120 140 $50 $70 $90 $110 $130 $150 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 UPB $ MSR FV, bps 68% 70% 2.0

 
$719 $717 $661 $604 $533 $2 $4 $- $- $- $721 $721 $661 $604 $533 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Unrestricted Cash Unused Lines 12% 12% 11% 10% 9% Liquidity / Total Assets STRONG LIQUIDITY AND BALANCE SHEET 10 Liquidity Overview ($M) Debt Obligations, net to Total Equity MSR FV / Total Equity 2.5x 2.7x 2.8x 3.1x 2.7x Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 2.8x 2.9x 3.2x 3.6x 3.4x Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24

 
11 Q3 2024 OUTLOOK* Metric Low High Pull-through Weighted Rate Lock Volume ($bn) $5.0 $7.0 Origination Volume ($bn) $5.0 $7.0 Pull-through Weighted GOS Margin, bps 280 300 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 • Sharper focus on industry consolidation, driven primarily by headcount reductions and competitor exits to shed excess capacity given lower industry volume expectations *Q3 2024 outlook reflects current interest rate environment, seasonality, channel mix, and competitive pressures

 
APPENDIX

 
BALANCE SHEET & SERVICING PORTFOLIO HIGHLIGHTS 13 $ in MM except units and % 2Q ’24 1Q ‘24 2Q ’23 2Q’24 vs 1Q’24 2Q’24 vs 2Q’23 Cash and cash equivalents $533.2 $603.7 $719.1 (11.7%) (25.9%) Loans held for sale, at fair value 2,378.0 2,300.1 2,256.6 3.4% 5.4% Servicing rights, at fair value 1,583.1 1,985.9 2,012.0 (20.3%) (21.3%) Total assets 5,942.8 6,193.3 6,203.5 (4.0%) (4.2%) Warehouse and other lines of credit 2,213.1 2,069.6 2,046.2 6.9% 8.2% Total liabilities 5,363.8 5,555.9 5,406.2 (3.5%) (0.8%) Total equity 578.9 637.3 797.3 (9.2%) (27.4%) Servicing portfolio (unpaid principal balance) $114,278.5 $142,337.3 $142,479.9 (19.7%) (19.8%) Total servicing portfolio (units) 403,302 491,871 482,266 (18.0%) (16.4%) 60+ days delinquent ($) $1,457.1 $1,445.5 $1,192.4 0.8% 22.2% 60+ days delinquent (%) 1.3% 1.0% 0.8% N/A N/A Servicing rights, net to UPB 1.4% 1.4% 1.4% N/A N/A

 
NON-GAAP FINANCIAL RECONCILIATION 14 ($MM) 2Q ‘24 1Q ’24 2Q ’23 Adjusted Revenue Total Net Revenue $265.4 $222.8 $271.8 Valuation changes in in Servicing Rights, Net of Hedge 12.6 8.1 (3.1) Adjusted Total Revenue $278.0 $230.9 $268.7 Net (Loss) Income ($65.9) ($71.5) ($49.8) Interest Expense - Non-Funding Debt 53.0 46.5 43.0 Income Tax (Benefit) Expense (11.3) (13.7) (8.6) Depreciation and Amortization 9.0 9.4 10.7 Valuation changes in in Servicing Rights, Net of Hedge $12.6 8.0 (3.1) Stock-Based Compensation Expense 5.9 4.9 5.8 Restructuring Charges 3.1 2.1 4.5 Cyber Incident 26.9 14.7 0.0 (Gain) Loss on Disposal of Fixed Assets 0.0 (0.0) 0.8 Other impairment (recovery) 1.2 (0.0) 0.7 Adjusted EBITDA (LBITDA) $34.6 $0.5 $4.1

 
NON-GAAP FINANCIAL RECONCILIATION (CONT’D) 15 ($MM) 2Q ’24 1Q ’24 2Q ’23 Net Income (Loss) ($65.9) ($71.5) ($49.8) Adjustments to Income Taxes 8.8 9.8 6.9 Tax-Effected Net Income (Loss) (57.0) (61.7) (42.8) Valuation changes in in Servicing Rights, Net of Hedge 12.6 8.0 (3.1) Stock-Based Compensation Expense 5.9 4.9 5.8 Restructuring Charges 3.1 2.1 4.5 Cyber Incident 26.9 14.7 0.0 (Gain) Loss on Extinguishment of Debt 5.7 0.0 (0.0) (Gain) Loss on Disposal of Fixed Assets 0.0 (0.0) 0.8 Other (Recovery) Impairment 1.2 (0.0) 0.7 Tax Effect of Adjustments (14.3) (7.4) (1.9) Adjusted Net Income (Loss) ($15.9) ($39.4) ($36.1)

 
v3.24.2.u1
Cover
Aug. 06, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 06, 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
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