LoanDepot Q3 sales miss estimates on lower volumes
LDI•LoanDepot’s Q3 adjusted revenue fell 2% sequentially to $302.21 million, below the $330.32 million analyst estimate. The lender completed a $10 billion sale of Agency mortgage servicing rights, repurchased $87 million of senior notes and expects Q4 origination volume of $4.5 billion to $6.5 billion.
1. Quarterly results
LoanDepot reported Q3 revenue of $307.15 million and adjusted revenue of $302.21 million, down 2% sequentially and below the $330.32 million analyst estimate. It recorded a loss per share of $0.08, an adjusted net loss of $30.83 million and adjusted EBITDA of $16.92 million.
2. Liquidity and outlook
The lender completed a $10 billion sale of Agency mortgage servicing rights and repurchased $87 million of senior notes, reducing net debt obligations. For Q4, it expects origination volume of $4.5 billion to $6.5 billion, pull-through weighted rate lock volume of $3.25 billion to $5.25 billion, and a pull-through weighted gain-on-sale margin of 425 to 465 basis points.
3. Business drivers
LoanDepot said higher unit volume and stronger margins were driven by expansion of home equity lending products despite lower overall origination volume. Gain-on-sale margin rose with the shift toward higher-margin home equity loans, while expenses fell more than adjusted revenue, reflecting productivity initiatives and a more efficient product mix.
