Key facts
- loanDepot reported a net loss of $6.6 million for the second quarter, compared to a loss of $54.9 million in the first quarter.
- Second-quarter revenue increased 18% to $337.3 million, with loan origination volume up 4% to nearly $8 billion.
- The company's gain-on-sale margin improved to 3.45%, supported by a higher mix of home equity and government loans.
- Adjusted EBITDA rose to $20.5 million from $14.3 million in the prior quarter.
- loanDepot repurchased $16 million of senior notes during the second quarter.
loanDepot reported a significantly reduced net loss of $6.6 million for the second quarter, a marked improvement from the $54.9 million loss in the first quarter. The company's revenue climbed 18% to $337.3 million, while loan origination volume increased by 4% to nearly $8 billion. This performance was bolstered by an expansion in home equity lending, which contributed to a 25% rise in loan units and a 74 basis point increase in the pull-through weighted gain-on-sale margin to 3.45%.
CEO Anthony Hsieh highlighted the company's transformation agenda, noting progress in revenue growth, improved operating leverage, and a narrowed net loss despite rising interest rates. Expenses increased by less than 1% to $343.9 million, with cost management and an efficient product mix cited for improved operating leverage. Adjusted EBITDA grew to $20.5 million from $14.3 million in the previous quarter.
The company's strategic focus on home equity lending aims to provide homeowners with liquidity without requiring them to replace existing first mortgages with higher-rate loans. loanDepot also expanded its core mortgage business through new partnerships and retail locations, with purchase loans accounting for 57% of originations, up from 41% in the first quarter. The servicing portfolio grew to $123.4 billion.
loanDepot repurchased $16 million of senior notes during the quarter and an additional $27 million after the quarter ended. The company is also evaluating options to optimize its capital structure and address bond maturities. For the third quarter, loanDepot anticipates loan origination volume between $6.25 billion and $8.25 billion, with gain-on-sale margins projected at 3.60% to 3.90%.