Outlook
- LoanDepot sees Q3 origination volume between $6.25 billion and $8.25 billion
- The company expects Q3 pull-through weighted rate lock volume of $5.25 billion to $7.25 billion
- LoanDepot forecasts Q3 pull-through weighted gain on sale margin of 360-390 basis points
Overview
- U.S. mortgage lender's Q2 revenue grew 18% sequentially, driven by home equity lending expansion
- Adjusted net loss for Q2 missed analyst expectations, though the loss narrowed from the prior quarter
- The company repurchased $16 million of senior notes in Q2, plus $27 million post quarter-end
Result Drivers
- Home equity lending - The company said expansion into home equity lending through its 5X5 HomeLoan product drove 25% unit volume growth and 18% revenue growth
- Product mix shift - A deliberate shift toward higher-margin home equity and government loans supported a 74 basis point increase in pull-through weighted gain on sale margin
- Cost management - Expenses increased less than 1% from the prior quarter, reflecting disciplined cost management and a more efficient product mix
Key details and analyst coverage
LDI•
