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loanDepot cuts Q2 net loss as home equity mix lifts margins

loanDepot said its gain-on-sale margin rose to 3.45% in Q2, supported by a higher share of home equity and government loans.

Reported · Written up by our desk · Residential

HousingWire reports that loanDepot narrowed its second-quarter net loss to $6.6 million, an improvement from a $54.9 million loss in the first quarter. Revenue rose 18% quarter over quarter to $337.3 million, while loan origination volume increased 4% to nearly $8 billion.

The company attributed the margin improvement to a bigger home equity mix. In its earnings report, loanDepot said its pull-through weighted gain-on-sale margin climbed 74 basis points to 3.45%, supported by greater home equity and government loan mix.

HousingWire also reports that loan units rose 25% from the first quarter, helped by loanDepot’s expansion into home equity lending. The company said expenses increased less than 1% to $343.9 million and that adjusted EBITDA rose to $20.5 million from $14.3 million in the prior quarter.

In commentary linked to the earnings period, HousingWire notes that activist firm Randian Capital called for a formal review of strategic alternatives in an open letter to loanDepot’s board. Separately, loanDepot said it plans to open a Miami corporate center in September to house technology, marketing, recruiting, and other support teams.

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