Company Overview - The company is the sixth largest retail-focused non-bank mortgage originator and the eighth largest overall retail originator as of March 13, 2025[18]. - The company aims to increase U.S. annual one-to-four family residential mortgage origination volume from $1.8 trillion in 2024 to $2.1 trillion in 2025, representing a 16% increase[21]. - The company's market share in loan originations increased from 1.0% in 2014 to 1.4% for the year ended December 31, 2024[39]. - As of December 31, 2024, the company employed approximately 4,900 employees, reflecting its commitment to a skilled workforce[54]. - The company holds 34 registered trademarks and 27 trademark applications in the U.S., along with 3 issued patents and 14 patent applications, indicating a strong focus on intellectual property[60]. Financial Performance - The company experienced a significant decline in loan origination activity in fiscal 2023, resulting in a net loss for both fiscal 2023 and 2024, with expectations of continued muted activity through at least 2025[157]. - Elevated interest rates have adversely affected demand for loan and real estate-related products, leading to lower margins and decreased revenues, with net losses reported for fiscal years 2022, 2023, and 2024[158][159]. - The company's profitability is directly affected by interest rate changes, with market value of closed LHFS and IRLCs declining as interest rates rise[85]. - The company has derived substantially all revenue from traditional mortgage loans, and efforts to expand into new consumer products may not succeed, potentially reducing expected revenue growth[72]. Regulatory Environment - The company is licensed as a loan originator in all 50 states and the District of Columbia, ensuring compliance with state regulations[44]. - The company is subject to a comprehensive regulatory framework, including the Dodd-Frank Act and various state-specific laws, which could materially affect its operations[46]. - The company engages proactively with regulators to stay ahead of regulatory trends, viewing its compliance infrastructure as a competitive advantage[41]. - The company is subject to regulatory investigations that could result in fines and penalties, adversely impacting reputation and financial results[188]. - The CFPB has broad enforcement powers, including the ability to impose civil money penalties for violations of consumer protection laws, which could lead to significant financial liabilities for the company[192]. Risk Management - The company's risk management policies and procedures may not be effective, exposing it to various operational risks[68]. - The company relies on internal models to manage risk, which may produce unreliable results if assumptions are inaccurate or if there are unprecedented events[90]. - The company may incur significant penalties under FIRREA and the False Claims Act for alleged violations, with settlements potentially totaling hundreds of millions of dollars[195]. - The company faces risks from VA guaranteed loans, where the guarantee may not cover losses or advances, potentially leading to significant financial impacts if no-bid situations increase[108]. Operational Efficiency - The company completed the transition of its servicing portfolio to an in-house platform in February 2023, enhancing operational efficiency[30]. - The company has developed a proprietary technology platform, mello®, aimed at enhancing compliance and operational efficiency in the financial services industry[40]. - The company plans to develop an AI-powered relationship management platform to enhance customer engagement in home buying and selling[25]. - The transition to in-house servicing from Cenlar FSB may lead to increased operational and compliance costs, with direct responsibility for regulatory compliance[105]. Market Conditions - The Federal Reserve raised the Federal Funds rate to a range of 5.25% - 5.50% in July 2023, impacting mortgage loan origination volumes due to decreased affordability and demand for refinancing[19]. - The company’s operations may be impacted by changes in regulatory requirements, which could increase compliance costs or restrict business practices[46]. - The geographic concentration of mortgage loan originations in states like California, Texas, and Florida may adversely affect the lending business due to economic conditions and property value declines[94]. - Adverse developments in the secondary mortgage loan market, including the MBS market, could materially impact liquidity and overall business performance[171]. Employee Development and Culture - The company provides extensive training and development programs for its employees, including a leadership academy for high-potential leaders[57]. - The company emphasizes a culture of diversity and inclusion, conducting annual pay equity monitoring and employee surveys to enhance workplace engagement[55]. - Attracting and retaining skilled personnel is critical, as competition for experienced employees is intensifying, which may increase labor costs[134]. Competition - The company faces intense competition from large commercial banks and independent loan originators, which may have greater resources and access to capital, impacting its competitive position[163]. - The company is subject to significant competition for attractive acquisition opportunities, which may impede its growth strategy if it cannot identify or consummate acquisitions effectively[81]. Technology and Cybersecurity - Technological advancements, including AI, are essential for competitiveness, but reliance on these technologies introduces operational vulnerabilities and compliance risks[145]. - Cybersecurity threats and technology failures pose significant risks to business operations and could increase operational costs[147]. - Cybersecurity risks have significantly increased, with a notable incident in January 2024 that may make the company more vulnerable to future attacks, potentially disrupting operations and damaging reputation[149][151].

U.S. stock futures were higher this morning, with the Dow futures gaining around 200 points on Wednesday.Shares of Hello Group Inc. MOMO fell sharply during pre-market trading after reporting weak quarterly results.Hello Group posted fourth-quarter adjusted EPADS of 18 cents missing estimates of 21 cents per shares. The company's sales came in at $361.20 million missing expectations of $365.05 million.Hello Group shares dipped 12.4% to $6.50 in the pre-market trading session.Here are some other stocks movin ...

Financial Data and Key Metrics Changes - The company reported an adjusted net loss of $47 million in Q4 2024, compared to an adjusted net loss of $27 million in Q4 2023, primarily due to higher volume-related expenses, offset somewhat by higher adjusted revenues [15] - Adjusted total revenue for Q4 2024 was $267 million, an increase from $251 million in Q4 2023 [17] - Total expenses for Q4 2024 increased by $39 million or 13% from the prior year, driven by higher volume-related commission, direct origination, and marketing expenses [20] Business Line Data and Key Metrics Changes - Pull-through weighted rate lock volume was $5.6 billion in Q4 2024, a 27% increase from $4.4 billion in Q4 2023 [16] - Loan origination volume for the quarter was $7.2 billion, a 34% increase from $5.4 billion in the prior year [18] - Servicing fee income decreased from $132 million in Q4 2023 to $108 million in Q4 2024, reflecting a decrease in the size of the portfolio [19] Market Data and Key Metrics Changes - The mortgage market continued to remain depressed in 2023 and 2024, with volumes approaching generational lows [9] - The company expects pull-through weighted lock volume for Q1 2025 to be between $4.8 billion and $5.8 billion, reflecting a seasonal decrease in purchase activity [21] Company Strategy and Development Direction - The completion of the Vision 2025 strategic program marked significant progress for the company, focusing on resetting the cost structure and making investments in people, processes, products, and technology [10] - The company announced a new three-year plan, Project North Star, aimed at improving operational efficiency and customer experience [11][47] - The company is positioned to accelerate revenue growth and aims to become the lender of choice for American homeowners as the market recovers [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the housing and mortgage markets but emphasized the substantial opportunities for growth [13] - The company is maintaining heightened levels of liquidity to navigate the challenging mortgage market and aims to keep at least 5% of assets in liquidity [28] Other Important Information - The company ended the quarter with $422 million in cash and has made important investments in productivity initiatives [23] - The company plans to continue investing in its servicing asset, viewing it as a strategic asset [30] Q&A Session Summary Question: Current cash liquidity situation and servicing balances outlook for 2025 - Management indicated that they are maintaining heightened levels of liquidity and aim to keep around 5% of assets in liquidity throughout 2025 [27][28] Question: Drivers of sequential increase in G&A and servicing expenses - The increase in G&A expenses was attributed to a return to normalization after a prior insurance recovery, while servicing expenses were impacted by seasonal factors and a slight increase in delinquency rates [34][36] Question: Volume guidance for Q1 and comparison to third-party estimates - Management expects a sequential decline in locks in line with normal seasonality but is hopeful for share gains compared to third-party estimates showing a more significant decline [38] Question: Hiring expense plans in 2025 and operating leverage expectations - Management plans to continue strategic investments in revenue-generating expenses and expects operating leverage to increase as refinance markets improve [44] Question: Updates on Project North Star initiatives - Management confirmed ongoing investments in technology platforms to improve operational efficiency and announced two new joint ventures expected to ramp up in 2025 [47][49]

4Q 2024 INVESTOR PRESENTATION March 11, 2025 DISCLAIMER Forward-Looking Statements and Other Information This presentation and the 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 o ...

Revenue Performance - Revenue increased 9% to $1.06 billion for the full year 2024, with adjusted revenue rising 10% to $1.10 billion compared to 2023[5] - Fourth quarter revenue reached $257 million, a 13% increase from the prior year, while adjusted revenue was $267 million, up 6%[5] - Total net revenue for the fourth quarter of 2024 was $257,464 thousand, a decrease of 18.14% from $314,598 thousand in the third quarter of 2024[29] - Adjusted total revenue for the fourth quarter of 2024 was $266,594 thousand, up from $251,395 thousand in the same quarter of 2023, reflecting a year-over-year increase of 6.03%[29] - The company reported a total loan origination volume of $24,496,500 thousand for the year ended December 31, 2024, compared to $22,671,731 thousand for the previous year, marking an increase of 8.06%[22] Net Loss and Adjusted Loss - Net loss for the fourth quarter of 2024 was $67.5 million, compared to a net loss of $59.8 million in the fourth quarter of 2023[13] - Adjusted net loss for the fourth quarter of 2024 was $47 million, compared to an adjusted net loss of $26.7 million in the fourth quarter of 2023[13] - The net loss attributable to loanDepot, Inc. for the three months ended December 31, 2024, was $33,234,000, compared to a net income of $1,369,000 in the previous quarter and a net loss of $27,193,000 in the same quarter last year[19] - The adjusted net loss for the year ended December 31, 2024, was $94,823 thousand, an improvement from the adjusted net loss of $151,641 thousand in 2023[30] Loan Origination and Volume - Loan origination volume for the fourth quarter of 2024 was $7.2 billion, a 34% increase from the fourth quarter of 2023[13] - Loan origination volume for the fourth quarter of 2024 reached $7,188,186 thousand, an increase of 8.00% compared to $6,659,329 thousand in the previous quarter[22] - The company retained servicing on loans sold amounting to $4,421,935 thousand in the fourth quarter of 2024, compared to $3,818,375 thousand in the previous quarter, an increase of 15.80%[22] Financial Position and Assets - Cash and cash equivalents decreased by 12.7% from September 30, 2024, to $421,576,000, and by 36.2% compared to $660,707,000 as of December 31, 2023[18] - The total assets as of December 31, 2024, were $6,344,028,000, a decrease of 1.1% from the previous quarter and an increase of 3.1% from the same period last year[18] - The servicing rights at fair value increased to $1,633,661,000 as of December 31, 2024, representing a 5.9% increase from the previous quarter but an 18.3% decrease from the same period last year[18] - Total liabilities as of December 31, 2024, were $5,837,417,000, a slight increase of 0.2% from the previous quarter and a 7.2% increase from the same period last year[18] - The company’s available borrowing capacity was $1.2 billion as of December 31, 2024, up from $3.1 billion at the same time last year[18] Delinquency and Restructuring - The 60+ days delinquent amount increased to $1,826,105,000, a 10.3% increase from the previous quarter and a 31.1% increase compared to December 31, 2023[17] - The liability for loans eligible for repurchase was $995,398 thousand as of December 31, 2024, up from $860,300 thousand on September 30, 2024, an increase of 15.66%[21] - The restructuring charges for the year ended December 31, 2024, were $7,199 thousand, down from $11,811 thousand in 2023[36] Strategic Initiatives - The company successfully refinanced 2025 corporate debt, extending maturity and reducing outstanding corporate debt by $137 million[5] - The company expanded its network of joint venture partnerships with new agreements with Smith Douglas Homes and Onx Homes[5] - The company is focused on Project North Star, aiming for sustainable profitability and revenue growth in the future[41] - loanDepot is committed to enhancing its digital-first home lending products to better serve diverse communities of first-time homebuyers[43] Tax and Shareholder Information - The effective income tax rate for the year ended December 31, 2024, was 25.17%, compared to 26.22% for the previous year[31] - The diluted weighted average shares outstanding increased to 327,009,768 for the year ended December 31, 2024, from 322,695,123 in 2023[34] - Interest expense for non-funding debt was $188,550 thousand for the year ended December 31, 2024, compared to $174,103 thousand in 2023[36] - Adjusted EBITDA for the year ended December 31, 2024, was $83,749 thousand, a significant increase from $6,441 thousand in 2023[36] - The company experienced a valuation change in servicing rights, net of hedging gains and losses, amounting to $44,675 thousand for the year ended December 31, 2024[36]

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to _____ Commission File Number: 001-40003 | --- | --- | --- | --- | |---------------------------|------------------------------------------|-------- ...

Financial Data and Key Metrics Changes - The company reported adjusted net income of $7 million in Q3 2024, compared to an adjusted net loss of $29 million in Q3 2023, primarily due to higher adjusted revenues from increased volume and gain on sale margins [26] - Pull-through weighted rate lock volume was $6.7 billion, a 19% increase from $5.8 billion in the prior year [27] - Adjusted total revenue increased to $320 million from $261 million in Q3 2023 [27] Business Line Data and Key Metrics Changes - Loan origination volume for the quarter was $6.7 billion, a 9% increase from $6.1 billion in the prior year [29] - Servicing fee income rose from $121 million in Q3 2023 to $124 million in Q3 2024, attributed to higher earnings credits on custodial balances [29] Market Data and Key Metrics Changes - The Mortgage Bankers Association forecasts 2025 mortgage market volumes at $2.3 trillion, up from $1.8 trillion for 2024, indicating a potential recovery in housing transactions [22] Company Strategy and Development Direction - The company successfully completed its Vision 2025 strategic program, which focused on transforming origination business and reducing costs, resulting in a return to profitability [25][14] - The new strategic plan, Project North Star, aims for durable revenue growth and improved customer experiences through AI-powered platforms and expanded geographic reach [15][16] Management Comments on Operating Environment and Future Outlook - Management noted that the housing market has faced challenges, but there is optimism for recovery in 2025, driven by pent-up demand and a potential increase in home equity linked mortgage products [21][23] - The company is positioned to capitalize on improving market conditions, with expectations of sustainable profitability in various operating environments [36] Other Important Information - The company reduced annualized non-volume expenses by over $730 million since Q2 2022, while maintaining top quartile loan quality production [13] - The company ended the quarter with $483 million in cash, indicating a strong liquidity position [35] Q&A Session Summary Question: Expectations for non-volume-related expenses going forward - Management indicated that while volume-related expenses will fluctuate, they expect non-volume related expenses to decrease due to ongoing productivity initiatives, despite inflationary pressures from vendor costs [38][40] Question: Geographic expansion and partnerships under Project North Star - The company is focusing on expanding its retail team and joint ventures with builders, particularly in the South and Southeast regions [42] Question: Sustainable profitability in 2025 - Management expressed confidence in achieving sustainable profitability based on current market forecasts and operational efficiencies [44][46] Question: Growth of servicing portfolio - The growth will come from organic additions and opportunistic acquisitions of MSRs, with financing strategies in place to support this growth [48][49] Question: Loan originator recruitment environment - The company is seeing positive traction in recruiting loan originators, despite a competitive market [50] Question: Details on the Smith Douglas partnership - The joint venture with Smith Douglas is expected to be a positive and predictable business model, distinct from in-market retail origination [52]

Core Viewpoint - loanDepot, Inc. is conducting its Q3 2024 earnings conference call, indicating a focus on financial performance and operational insights for the upcoming periods [1]. Group 1: Company Overview - The conference call is hosted by key company executives, including the President and CEO, CFO, and Chief Investment Officer, highlighting the importance of leadership in discussing financial results [1][2]. - The call aims to provide insights into the company's operating and financial performance, with a specific focus on forward-looking statements regarding various financial metrics [4][5]. Group 2: Financial Performance - The company emphasizes the use of non-GAAP financial measures to provide additional insights into performance and facilitate comparisons with other companies in the industry [6].

loan Depot 3Q 2024 INVESTOR PRESENTATION November 7, 2024 DISCLAIMER 2 Forward-Looking Statements and Other Information This presentation may contain "forward-looking statements," which reflect loanDepot's current views with respect to, among other things, our business strategies, including Project North Star, our progress toward run-rate profitability, ongoing cost management and productivity programs, our HELOC product, financial condition and liquidity, competitive position, industry and regulatory envir ...