Board Fight Looms As loanDepot Reports Big Q4 Loss

Mortgage News March 21, 2023

loanDepot, a California-based mortgage lender, reported a third consecutive quarterly loss in Q4 of 2022. Despite its efforts to reduce its workforce, exit the wholesale channel, and invest in new products, the company experienced declining mortgage production, resulting in a $475.8 million adjusted loss compared to its $555.5 million profit in 2021. Its GAAP net loss was $610.4 million.

The company’s Vision 2025 plan aims to right-size its operations to improve financial performance and return the lender to profitability, but the rough Q4 highlights that this may take several quarters to achieve. The company’s negative non-GAAP adjusted net income was $110.7 million in Q4, slightly lower than the previous quarter’s negative $116.8 million. Its GAAP net loss was $157.7 million.

Loan origination in Q4 was $6.4 billion, a decrease from $9.8 billion in Q3 2022, and company executives projected Q4 volume to range between $4 billion and $7 billion. In 2021, loanDepot produced $137 billion in loans, but in 2022, it originated only $53.7 billion.

According to Frank Martell, loanDepot’s president and CEO, 2022 was a year of dramatic volatility and extreme challenge for the mortgage and broader housing markets. High inflation, significant home price appreciation, and structural supply and demand imbalances resulted in a depressive impact on available household incomes, affecting almost every part of the housing ecosystem.

In summary, loanDepot’s Q4 2022 financial results underscore the need for the company to continue implementing its Vision 2025 plan, given the challenging mortgage and housing market conditions. The company’s goal of improving financial performance and returning to profitability may take several quarters, and the road ahead remains uncertain.

Contact Us/Order Samples

For any questions OR a sample of the records please submit the following form.

Submit your comments, questions, or requests below. If you include your phone number, we will call you back.


I am Interested In: