Latest news with #loanDepot
Business Wire
02-06-2025
- Business
- Business Wire
loanDepot, Inc. Announces Issuance of Term Notes Secured by Ginnie Mae MSRs
IRVINE, Calif.--(BUSINESS WIRE)--loanDepot, Inc. (NYSE: LDI) (together with its subsidiaries, "loanDepot" or the "Company"), a leading provider of products and services that power the homeownership journey, today announced that it has completed the private offering of secured term notes (the 'Notes') in an aggregate principal amount of $200 million issued by the Company's indirect subsidiary, loanDepot GMSR Master Trust (the 'Issuer'). The Notes are secured by certain assets of the Issuer, including portfolio excess spread relating to mortgage servicing rights on mortgage loans underlying certain mortgage-backed securities guaranteed by Ginnie Mae. "I am very pleased with the attractive terms and successful execution of this transaction, which highlights the strength and breadth of loanDepot's financing strategy and attractive capital raising alternatives," said David Hayes. Share The Notes are variable rate based on SOFR plus a margin and mature on May 16, 2030, or, if maturity is extended, on May 17, 2032. Proceeds of the issuance, net of fees, were used to redeem the Series 2018-GT1 Term Notes previously issued by the Issuer and due to mature in October 2025. Nomura Securities International, Inc. ('Nomura') served as the manager and the initial purchaser. Alston & Bird LLP represented loanDepot as Issuer's counsel. 'I am very pleased with the attractive terms and successful execution of this transaction, which highlights the strength and breadth of loanDepot's financing strategy and attractive capital raising alternatives, including strong relationships with a leading investment bank like Nomura,' said loanDepot's Chief Financial Officer David Hayes. 'Nomura with their strength and experience in securitized products, has been an important strategic partner of loanDepot and we are pleased to have them lead this transaction.' 'We are excited to be a long-standing partner with loanDepot. Our flexible capital and extensive structuring capabilities provide creative solutions for our partners as well as differentiated asset-based finance investments for our clients,' said Sanil Patel, Global Head, Mortgage Structured Lending, Nomura Securities International. The Notes will not be registered under the Securities Act of 1933 (the 'Securities Act') or offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. This press release is an announcement of record only and shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state. For more information about loanDepot, please visit the Company's investor relations website: About loanDepot: At loanDepot (NYSE: LDI), we know home means everything. That's why we are on a mission to support homeowners with a suite of products and services that fuel the American Dream. Our portfolio of digital-first home purchase, home refinance and home equity lending products make homeownership more accessible, achievable, and rewarding, especially for the increasingly diverse communities of first-time homebuyers we serve. Headquartered in Southern California with local market offices nationwide, loanDepot and its sister real estate and home services company, mellohome, are dedicated to helping customers put down roots and bring dreams to life – all while building stronger communities and a better tomorrow. Forward-Looking Statements This press release and related management commentary contain, and responses to investor questions may contain, forward-looking statements that can be identified by the fact that they do not relate strictly to historical or current facts and may contain the words 'outlook,' 'believe,' 'anticipate,' 'expect,' 'future,' 'guidance,' 'target,' 'intend,' 'plan,' 'goal,' 'predict,' 'estimate,' 'potential,' 'project,' 'seek,' 'will be,' 'will continue,' 'will likely result,' or other similar words and phrases or future or conditional verbs such as 'shall,' 'will,' 'may,' 'might,' 'should,' 'would,' or 'could' and the negatives of those terms or other comparable words. Examples of forward-looking statements include, but are not limited to, statements about the use of proceeds, treatment of the Notes, financing strategies, and capital raising. 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 that are difficult to predict and which are detailed in the "Risk Factors" section of loanDepot, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2024, as well as any subsequent filings with the Securities and Exchange Commission. Therefore, current plans, anticipated actions, and future results may differ materially from what is expressed or forecasted in any forward-looking statement. loanDepot's forward-looking statements speak only as of the date of this communication or as of the date they are made. 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. LDI-IR
Yahoo
02-06-2025
- Business
- Yahoo
loanDepot, Inc. Announces Issuance of Term Notes Secured by Ginnie Mae MSRs
IRVINE, Calif., June 02, 2025--(BUSINESS WIRE)--loanDepot, Inc. (NYSE: LDI) (together with its subsidiaries, "loanDepot" or the "Company"), a leading provider of products and services that power the homeownership journey, today announced that it has completed the private offering of secured term notes (the "Notes") in an aggregate principal amount of $200 million issued by the Company's indirect subsidiary, loanDepot GMSR Master Trust (the "Issuer"). The Notes are secured by certain assets of the Issuer, including portfolio excess spread relating to mortgage servicing rights on mortgage loans underlying certain mortgage-backed securities guaranteed by Ginnie Mae. The Notes are variable rate based on SOFR plus a margin and mature on May 16, 2030, or, if maturity is extended, on May 17, 2032. Proceeds of the issuance, net of fees, were used to redeem the Series 2018-GT1 Term Notes previously issued by the Issuer and due to mature in October 2025. Nomura Securities International, Inc. ("Nomura") served as the manager and the initial purchaser. Alston & Bird LLP represented loanDepot as Issuer's counsel. "I am very pleased with the attractive terms and successful execution of this transaction, which highlights the strength and breadth of loanDepot's financing strategy and attractive capital raising alternatives, including strong relationships with a leading investment bank like Nomura," said loanDepot's Chief Financial Officer David Hayes. "Nomura with their strength and experience in securitized products, has been an important strategic partner of loanDepot and we are pleased to have them lead this transaction." "We are excited to be a long-standing partner with loanDepot. Our flexible capital and extensive structuring capabilities provide creative solutions for our partners as well as differentiated asset-based finance investments for our clients," said Sanil Patel, Global Head, Mortgage Structured Lending, Nomura Securities International. The Notes will not be registered under the Securities Act of 1933 (the "Securities Act") or offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. This press release is an announcement of record only and shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state. For more information about loanDepot, please visit the Company's investor relations website: About loanDepot: At loanDepot (NYSE: LDI), we know home means everything. That's why we are on a mission to support homeowners with a suite of products and services that fuel the American Dream. Our portfolio of digital-first home purchase, home refinance and home equity lending products make homeownership more accessible, achievable, and rewarding, especially for the increasingly diverse communities of first-time homebuyers we serve. Headquartered in Southern California with local market offices nationwide, loanDepot and its sister real estate and home services company, mellohome, are dedicated to helping customers put down roots and bring dreams to life – all while building stronger communities and a better tomorrow. Forward-Looking Statements This press release and related management commentary contain, and responses to investor questions may contain, forward-looking statements that can be identified by the fact that they do not relate strictly to historical or current facts and may contain the words "outlook," "believe," "anticipate," "expect," "future," "guidance," "target," "intend," "plan," "goal," "predict," "estimate," "potential," "project," "seek," "will be," "will continue," "will likely result," or other similar words and phrases or future or conditional verbs such as "shall," "will," "may," "might," "should," "would," or "could" and the negatives of those terms or other comparable words. Examples of forward-looking statements include, but are not limited to, statements about the use of proceeds, treatment of the Notes, financing strategies, and capital raising. 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 that are difficult to predict and which are detailed in the "Risk Factors" section of loanDepot, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2024, as well as any subsequent filings with the Securities and Exchange Commission. Therefore, current plans, anticipated actions, and future results may differ materially from what is expressed or forecasted in any forward-looking statement. loanDepot's forward-looking statements speak only as of the date of this communication or as of the date they are made. 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. LDI-IR View source version on Contacts Investor Contact: Gerhard ErdeljiSenior Vice President, Investor Relations(949) 822-4074gerdelji@ Media Contact: Rebecca AndersonSenior Vice President, Strategic Communications and Public Relations(949) 822-4024rebeccaanderson@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Mainichi
07-05-2025
- Sport
- The Mainichi
Ohtani crushes 10th homer in Dodgers' 5-4 loss to Miami
MIAMI (Kyodo) -- Los Angeles Dodgers star Shohei Ohtani homered for the second game in a row, taking his tally to 10 for the season, in a 5-4 walk-off loss in 10 innings against the Miami Marlins on Tuesday. The reigning National League MVP tied the game 2-2 in the top of the sixth inning with a 403-foot solo bomb to the upper deck beyond right field at loanDepot park in Miami. Freddie Freeman put the Dodgers up 3-2 with his solo home run later in the sixth. Miami got back on top with two runs in the home half of the inning. They eventually walked off winners thanks to Jesus Sanchez's RBI single in the bottom of the 10th. Ohtani, who has now reached double-digit home runs in five straight seasons, also contributed a timely double in the seventh inning to finish 2-for-5 with two RBIs.
Business Wire
06-05-2025
- Business
- Business Wire
loanDepot Announces First Quarter 2025 Financial Results
IRVINE, Calif.--(BUSINESS WIRE)--loanDepot, Inc. (NYSE: LDI), (together with its subsidiaries, 'loanDepot' or the 'Company'), a leading provider of products and services that power the homeownership journey, today announced results for the first quarter ended March 31, 2025. Q1 was a quarter of positive momentum for the company. Higher volume, margins and ongoing cost discipline drive improved Q1 results. Share 'I would like to thank Team loanDepot for their dedication and support over these past three years,' said President and Chief Executive Officer Frank Martell. 'Together as a team, we addressed the realities of the market while investing in critical systems, products, and processes; these investments will allow loanDepot to take advantage of our marketplace differentiators in this and upcoming cycles, as well as to continue to deliver a best-in-class customer experience. I am proud to have been a part of loanDepot and look forward with confidence to the company's future success.' 'On behalf of the entire board of directors, I would like to thank Frank for his leadership over the past three years,' said Founder and Executive Chairman of the Board Anthony Hsieh. 'Frank is a man of honor and a servant leader – his care for Team loanDepot and the customers we serve is evident.' 'As we go forward,' continued Hsieh, 'the team and I will focus on capitalizing upon the things that already make loanDepot great. Our multi-channel sales model, proprietary mello tech stack, wide product array, powerful brand muscle and our servicing business are foundational places in which loanDepot can win. By leveraging this unique constellation of assets, plus adding to our arsenal with new and emerging technologies and platform refinements, I believe we are well positioned to regain profitable market share and scale our business.' 'We deeply appreciate all that Frank Martell brought to our company, and are energized by Anthony's return,' said Chief Financial Officer David Hayes. 'Under Frank's guidance, the first quarter reflected the benefits of our investment in growth generating initiatives, despite the adverse impact of lower servicing revenue stemming from our 2024 MSR bulk sales. Our home equity-linked products supported strong margin and volume increases, growing revenue by 23%. On the cost side, aligned with our enduring discipline in expense management, our non-volume expenses decreased 3% year-over-year.' 'As Anthony and I work together moving forward,' continued Hayes, 'we remain focused on our commitment to profitability and disciplined approach to growing revenue and market share while maintaining ample cash and a strong balance sheet.' First Quarter Highlights: (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. Expand Year-over-Year Operational Highlights Non-volume 1 related expenses decreased $7.4 million from the first quarter of 2024, primarily due to lower general and administrative and other interest expenses. Accrued $0.8 million expense associated with the first quarter 2024 cybersecurity incident (the 'Cybersecurity Incident') compared to $14.7 million in the first quarter of 2024. Pull-through weighted lock volume of $5.4 billion for the first quarter of 2025, an increase of $0.7 billion or 15% from the first quarter of 2024. Loan origination volume for the first quarter of 2025 was $5.2 billion, an increase of $0.6 billion or 14% from the first quarter of 2024. Purchase volume totaled 59% of total loans originated during the first quarter, down from 72% during the first quarter of 2024. Our preliminary organic refinance consumer direct recapture rate 2 increased to 65% from the first quarter 2024's recapture rate of 59%. Net loss for the first quarter of 2025 of $40.7 million as compared to net loss of $71.5 million in the first quarter of 2024. Net loss narrowed primarily due to higher volume and margins, offset somewhat by lower servicing revenue and increased expenses. Adjusted net loss for the first quarter of 2025 was $25.3 million as compared to adjusted net loss of $38.1 million for the first quarter of 2024. _________________ 1 Volume related expenses include commissions, marketing and advertising expense, and direct origination expense. All remaining expenses are considered non-volume related. 2 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. Expand Outlook for the second quarter of 2025 Origination volume of between $5.0 billion and $7.5 billion. Pull-through weighted rate lock volume of between $5.5 billion and $8.0 billion. Pull-through weighted gain on sale margin of between 300 basis points and 350 basis points. (1) Includes the provision for sold MSRs and broker fees. Expand Three Months Ended Servicing Rights, at Fair Value: ($ in thousands) (Unaudited) Mar 31, 2025 Dec 31, 2024 Mar 31, 2024 Balance at beginning of period $ 1,615,510 $ 1,526,013 $ 1,985,718 Additions 52,686 75,547 48,375 Sales proceeds (5,362 ) (10,995 ) (56,113 ) Changes in fair value: Due to changes in valuation inputs or assumptions (23,689 ) 68,228 28,244 Due to collection/realization of cash flows (36,176 ) (43,227 ) (35,999 ) Realized gains (losses) on sales of servicing rights 62 (56 ) (61 ) Total changes in fair value (59,803 ) 24,945 (7,816 ) Balance at end of period (1) $ 1,603,031 $ 1,615,510 $ 1,970,164 Expand (1) Balances are net of $18.5 million, $18.2 million, and $15.8 million of servicing rights liability as of March 31, 2025, December 31, 2024, and March 31, 2024, respectively. Expand Balance Sheet Highlights % Change ($ in thousands) (Unaudited) Mar 31, 2025 Dec 31, 2024 Mar 31, 2024 Mar-25 vs Dec-24 Mar-25 vs Mar-24 Cash and cash equivalents $ 371,480 $ 421,576 $ 603,663 (11.9 )% (38.5 )% Loans held for sale, at fair value 2,765,417 2,603,735 2,300,058 6.2 20.2 Loans held for investment, at fair value 114,447 116,627 — (1.9 ) NM Servicing rights, at fair value 1,621,494 1,633,661 1,985,948 (0.7 ) (18.4 ) Total assets 6,416,714 6,344,028 6,193,270 1.1 3.6 Warehouse and other lines of credit 2,490,447 2,377,127 2,069,619 4.8 20.3 Total liabilities 5,947,416 5,837,417 5,555,928 1.9 7.0 Total equity 469,298 506,611 637,342 (7.4 ) (26.4 ) Expand An increase in loans held for sale at March 31, 2025, resulted in a corresponding increase in the balance on our warehouse lines of credit. Total funding capacity with our lending partners was $3.7 billion at March 31, 2025, and $3.1 billion at March 31, 2024. Available borrowing capacity was $1.2 billion at March 31, 2025. Consolidated Balance Sheets ($ in thousands) Mar 31, 2025 Dec 31, 2024 (Unaudited) ASSETS Cash and cash equivalents $ 371,480 $ 421,576 Restricted cash 74,247 105,645 Loans held for sale, at fair value 2,765,417 2,603,735 Loans held for investment, at fair value 114,447 116,627 Derivative assets, at fair value 49,762 44,389 Servicing rights, at fair value 1,621,494 1,633,661 Trading securities, at fair value 87,355 87,466 Property and equipment, net 60,192 61,079 Operating lease right-of-use asset 22,682 20,432 Loans eligible for repurchase 1,022,924 995,398 Investments in joint ventures 18,214 18,113 Other assets 208,500 235,907 Total assets $ 6,416,714 $ 6,344,028 LIABILITIES AND EQUITY LIABILITIES: Warehouse and other lines of credit $ 2,490,447 $ 2,377,127 Accounts payable and accrued expenses 368,276 379,439 Derivative liabilities, at fair value 13,453 25,060 Liability for loans eligible for repurchase 1,022,924 995,398 Operating lease liability 34,821 33,190 Debt obligations, net 2,017,495 2,027,203 Total liabilities 5,947,416 5,837,417 EQUITY: Total equity 469,298 506,611 Total liabilities and equity $ 6,416,714 $ 6,344,028 Expand Loan Origination and Sales Data ($ in thousands) (Unaudited) Three Months Ended Mar 31, 2025 Dec 31, 2024 Mar 31, 2024 Loan origination volume by type: Conventional conforming $ 2,118,866 $ 3,331,526 $ 2,545,203 FHA/VA/USDA 2,121,208 2,938,168 1,654,025 Jumbo 319,390 368,518 75,794 Other 614,464 549,974 283,329 Total $ 5,173,928 $ 7,188,186 $ 4,558,351 Loan origination volume by purpose: Purchase $ 3,063,914 $ 4,139,542 $ 3,296,273 Refinance - cash out 1,847,176 2,424,749 1,143,682 Refinance - rate/term 262,838 623,895 118,396 Total $ 5,173,928 $ 7,188,186 $ 4,558,351 Loans sold: Servicing retained $ 3,453,710 $ 4,421,935 $ 2,986,541 Servicing released 1,713,963 2,937,984 1,452,812 Total $ 5,167,673 $ 7,359,919 $ 4,439,353 Expand First Quarter Earnings Call Management will host a conference call and live webcast today at 5:00 p.m. ET to discuss the Company's financial and operational highlights followed by a question-and-answer session. The conference call can be accessed by registering online at at which time registrants will receive dial-in information as well as a conference ID. At the time of the call, participants will dial in using the participant number and conference ID provided upon registration. A live audio webcast of the conference call will also be available via the Company's website, under Events & Presentation tab. 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: 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 Weighted Average Shares Outstanding, 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 have excluded expenses directly related to the Cybersecurity Incident, net of insurance recoveries during fiscal 2024, such as costs to investigate and remediate the Cybersecurity Incident, the costs of customer notifications and identity protection, and professional fees, including legal expenses, litigation settlement costs, and commission guarantees. We also exclude stock-based compensation expense, which is a non-cash expense, 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 common stock 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. Because of these limitations, Adjusted Total Revenue, Adjusted Net Income (Loss), Adjusted Diluted Weighted Average Shares Outstanding, 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 Weighted Average Shares Outstanding, 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. (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. Expand Reconciliation of Net Loss to Adjusted Net Loss ($ in thousands) (Unaudited) Three Months Ended Mar 31, 2025 Dec 31, 2024 Mar 31, 2024 Net loss attributable to loanDepot, Inc. $ (21,896 ) $ (33,234 ) $ (34,255 ) Net loss from the pro forma conversion of Class C common stock to Class A common stock (1) (18,800 ) (34,232 ) (37,250 ) Net loss (40,696 ) (67,466 ) (71,505 ) Adjustments to the benefit for income taxes (2) 4,901 7,928 9,774 Tax-effected net loss (35,795 ) (59,538 ) (61,731 ) Valuation changes in servicing rights, net of hedging gains and losses (3) 4,823 9,130 8,031 Stock-based compensation expense 5,716 5,966 4,855 Restructuring charges (4) 2,121 93 3,961 Cybersecurity incident (5) 788 1,868 14,698 Loss (gain) on disposal of fixed assets 17 33 (29 ) Other impairment (recovery) (6) 5 (690 ) (1 ) Tax effect of adjustments (7) (3,010 ) (3,879 ) (7,928 ) Adjusted net loss $ (25,335 ) $ (47,017 ) $ (38,144 ) Expand (1) Reflects net loss to Class A common stock and Class D common stock from the pro forma exchange of Class C common stock. (2) loanDepot, Inc. is subject to federal, state and local income taxes. Adjustments to the benefit for income taxes reflect the income tax rates below, and the pro forma assumption that loanDepot, Inc. owns 100% of LD Holdings. Expand (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. (5) Represents expenses directly related to the Cybersecurity Incident, net of insurance recoveries during fiscal 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. (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. Expand (1) Reflects the assumed pro forma exchange and conversion of Class C common stock. Expand Reconciliation of Net Loss to Adjusted EBITDA (LBITDA) ($ in thousands) (Unaudited) Three Months Ended Mar 31, 2025 Dec 31, 2024 Mar 31, 2024 Net loss $ (40,696 ) $ (67,466 ) $ (71,505 ) Interest expense - non-funding debt (1) 43,265 43,874 46,547 Income tax benefit (5,407 ) (16,658 ) (13,660 ) Depreciation and amortization 7,666 8,779 9,443 Valuation changes in servicing rights, net of hedging gains and losses (2) 4,823 9,130 8,031 Stock-based compensation expense 5,716 5,966 4,855 Restructuring charges (3) 2,121 93 3,961 Cybersecurity incident (4) 788 1,868 14,698 Loss (gain) on disposal of fixed assets 17 33 (29 ) Other impairment (recovery) (5) 5 (690 ) (1 ) Adjusted EBITDA (LBITDA) $ 18,298 $ (15,071 ) $ 2,340 Expand (1) Represents other interest expense, which includes gain or loss on extinguishment of debt and amortization of debt issuance costs and debt discount, 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. (4) Represents expenses directly related to the Cybersecurity Incident, net of insurance recoveries during fiscal 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. (5) Represents lease impairment on corporate and retail locations. Expand Forward-Looking Statements This press release and related management commentary contain, and responses to investor questions may contain, forward-looking statements that can be identified by the fact that they do not relate strictly to historical or current facts and may contain the words '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. Examples of forward-looking statements include, but are not limited to, statements about future operations, performance, financial condition, competitive advantages, prospects, plans and strategies, sustainable profitability, market share revenue and growth opportunities, and expense management. 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 that are difficult to predict, including but not limited to, the following: our ability to achieve the expected benefits of Project North Star and the success of other business initiatives; our ability to achieve 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 changes in interest rates and changes in global trade policy and tariffs; 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, 2024, as well as any subsequent filings with the Securities and Exchange Commission. Therefore, current plans, anticipated actions, and 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 At loanDepot (NYSE: LDI), we know home means everything. That's why we are on a mission to support homeowners with a suite of products and services that fuel the American Dream. Our portfolio of digital-first home purchase, home refinance and home equity lending products make homeownership more accessible, achievable, and rewarding, especially for the increasingly diverse communities of first-time homebuyers we serve. Headquartered in Southern California with local market offices nationwide, loanDepot and its sister real estate and home services company, mellohome, are dedicated to helping customers put down roots and bring dreams to life – all while building stronger communities and a better tomorrow. LDI-IR
CBS News
30-04-2025
- Business
- CBS News
Does today's rate environment make HELOCs too risky? Here's what experts say.
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Homeowners should carefully calculate the trajectory of HELOC interest rates before borrowing equity right now. Getty Images Inflation and elevated interest rates continue to squeeze household budgets in 2025. Despite these financial hurdles, many homeowners are sitting on a valuable resource — the equity they've built in their homes. Getting a home equity line of credit (HELOC) has become a popular way to tap into this wealth. It offers lower interest rates than credit cards while providing flexibility similar to the use of a credit card. And that rate is variable and subject to change monthly for borrowers, meaning it could become even cheaper if interest rates continue to decline as they have. But the same features that make HELOCs attractive can also create financial risks. Are they too risky right now? We asked three home equity experts to share their insights on when HELOCs make sense, when they don't and what alternatives could be better right now. See how low your HELOC rate offers are here now. Does today's rate environment make HELOCs too risky? "With the prime rate at 7.5% and home prices having appreciated nationwide, I don't think HELOCs are too risky today," says Karen Mayfield, national head of originations at Multiply Mortgage, a mortgage-as-a-benefit provider. Debbie Calixto, sales manager at mortgage lender loanDepot, echoes a similar sentiment. "Households are feeling the pressure of rising living expenses," she observes. HELOCs offer a valuable alternative to high-interest credit card debt. However, Steven Glick, director of mortgage sales at real estate investment fintech company HomeAbroad, offers a more nuanced view. "HELOCs aren't inherently too risky, but they come with risks that depend on [your] situation," he explains. While home equity loan interest rates have dipped below 9%, he cautions that variable HELOC rates can climb if economic conditions change. When HELOCs make financial sense now Glick says a HELOC makes the most sense if you find yourself in one or more of these situations now: Get started with a HELOC online today. When HELOCs may not make financial sense now Here are situations where a HELOC could cause more harm than good if secured now, experts say: You have unstable income: "If your job's shaky or your DTI is above 43%, a variable-rate HELOC could stretch you thin, especially if rates rise," cautions Glick. "If your job's shaky or your DTI is above 43%, a variable-rate HELOC could stretch you thin, especially if rates rise," cautions Glick. You lack a clear purpose: "If you're borrowing for vague reasons or lifestyle expenses [such as] vacations, you're setting yourself up for trouble," warns Glick. "If you're borrowing for vague reasons or lifestyle expenses [such as] vacations, you're setting yourself up for trouble," warns Glick. The housing market is declining: If local home prices are dropping, overborrowing could leave you underwater if you need to sell. If local home prices are dropping, overborrowing could leave you underwater if you need to sell. You're on a tight budget: A HELOC's variable rate is risky if you're on a fixed budget where a $200 monthly payment increase would hurt you, according to Glick. A HELOC's variable rate is risky if you're on a fixed budget where a $200 monthly payment increase would hurt you, according to Glick. You already owe a lot: "If [you owe] a substantial amount on [your] home, it can be risky maxing out [your] entire, or a bulk, of [your] home equity," Mayfield says. Alternative home equity borrowing options to consider If a HELOC doesn't work for your circumstances right now, experts recommend these alternatives: Home equity loans Cash-out refinance loans : This replaces your existing mortgage with a larger one. Calixto notes that "even if the new mortgage is a bit higher than your current one, your borrowing costs might still be lower when everything's combined." This replaces your existing mortgage with a larger one. Calixto notes that "even if the new mortgage is a bit higher than your current one, your borrowing costs might still be lower when everything's combined." Reverse mortgages : "For homeowners 62 [of age and up], this lets you borrow against equity without monthly payments (repaid when you sell or pass away)," explains Glick. Seniors with limited income may choose this option. The bottom line HELOCs offer flexible access to your home's equity. But they work well when you have a clear purpose, stable finances and a plan for managing variable payments. Calixto advises taking a conservative approach. "Borrow only what you truly need and think carefully about how your home's value might change over time," she says. With careful planning, a HELOC can be a powerful financial tool rather than a risky burden.
