loanDepot, Inc. (NYSE:LDI) Q1 2023 Earnings Conference Call May 9, 2023 5:00 PM ET Company Participants Gerhard Erdelji - SVP, IR Frank Martell - President and CEO Pat Flanagan - CFO Jeffrey DerGurahian - CIO Jeff Walsh - LDI Mortgage President Conference Call Participants Kyle Joseph - Jefferies Taylor DeBey - Raymond James Operator Good afternoon, and welcome to loanDepot's First Quarter 2023 Earnings Call. [Operator Instructions] I would now like to turn the call over to Gerhard Erdelji, Senior Vice Pre ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%201.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company reported a net loss of $91.7 million in Q1 2023, with assets decreasing and operating cash flow significantly lower [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) - Total assets decreased by **$419.1 million (6.3%)** from December 31, 2022, to March 31, 2023, primarily driven by a **$334.1 million** decrease in Loans held for sale. Total liabilities decreased by **$338.8 million (6.0%)**, mainly due to a **$316.3 million** reduction in Warehouse and other lines of credit[167](index=167&type=chunk) Consolidated Balance Sheet Highlights (Unaudited) | (In thousands) | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $798,119 | $863,956 | | Loans held for sale, at fair value | $2,039,367 | $2,373,427 | | Servicing rights, at fair value | $2,028,788 | $2,037,447 | | Total assets | $6,190,791 | $6,609,934 | | **Liabilities & Equity** | | | | Warehouse and other lines of credit | $1,830,319 | $2,146,602 | | Debt obligations, net | $2,303,712 | $2,289,319 | | Total liabilities | $5,349,629 | $5,688,461 | | Total equity | $841,162 | $921,473 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) - Total net revenues for Q1 2023 were **$207.9 million**, a **58.7% decrease** from **$503.3 million** in Q1 2022. This was primarily driven by a **70.2% decrease** in 'Gain on origination and sale of loans, net' due to lower transaction volumes[152](index=152&type=chunk) - Total expenses decreased by **48.1%** to **$314.5 million** in Q1 2023 from **$606.3 million** in Q1 2022, largely due to significant reductions in personnel, marketing, and direct origination expenses, reflecting cost-cutting measures and lower loan volumes[152](index=152&type=chunk) Consolidated Statements of Operations Summary (Unaudited) | (In thousands, except per share amounts) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Total net revenues | $207,901 | $503,311 | | Total expenses | $314,484 | $606,256 | | Loss before income taxes | $(106,583) | $(102,945) | | Net loss | $(91,721) | $(91,318) | | Net loss attributable to loanDepot, Inc. | $(42,907) | $(34,741) | | Diluted loss per share | $(0.25) | $(0.25) | [Consolidated Statements of Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Equity) - Total equity decreased from **$921.5 million** at December 31, 2022, to **$841.2 million** at March 31, 2023. The decrease was primarily driven by a net loss of **$91.7 million** for the quarter[18](index=18&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (Unaudited) | (In thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $205,352 | $1,148,439 | | Net cash provided by investing activities | $6,922 | $291,026 | | Net cash used in financing activities | $(304,572) | $(1,352,226) | | **Net change in cash** | **$(92,298)** | **$87,239** | - The significant decrease in net cash from operating activities YoY was mainly due to a sharp reduction in proceeds from sales of loans, which fell from **$22.9 billion** in Q1 2022 to **$5.4 billion** in Q1 2023, reflecting the challenging market conditions[22](index=22&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) - The company's primary income sources are gains on the origination and sale of residential mortgage loans, loan servicing income, and fees for settlement services[29](index=29&type=chunk) - As of March 31, 2023, the company had significant concentration risk with three investors accounting for **11%**, **29%**, and **33%** of its loan sales[39](index=39&type=chunk) - The company is involved in legal proceedings, including employment litigation seeking damages over **$75 million** and a securities class action lawsuit. Management believes these lawsuits are without merit but notes that defending them will incur substantial costs[119](index=119&type=chunk)[225](index=225&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2023's decline to rising interest rates, leading to a 58.7% revenue drop, and is executing cost-cutting measures [Overview and Market Conditions](index=34&type=section&id=Overview%20and%20Market%20Conditions) - The Federal Reserve's continued rate hikes in Q1 2023 have increased mortgage interest rates, leading to an expected decline in mortgage transaction volumes for 2023 compared to 2022[141](index=141&type=chunk) - In response to market conditions, the company initiated its 'Vision 2025' plan in July 2022, focusing on purchase transactions, centralizing operations, and aggressively rightsizing its cost structure. Key actions included consolidating locations, exiting the wholesale business, and transitioning the servicing portfolio in-house[141](index=141&type=chunk) [Key Performance Indicators](index=35&type=section&id=Key%20Performance%20Indicators) Key Performance Indicators (Unaudited) | (Dollars in thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Total loan originations | $4,944,337 | $21,550,731 | | Purchase loan originations | $3,512,771 | $8,030,766 | | Refinance loan originations | $1,431,566 | $13,519,965 | | Gain on sale margin | 2.43% | 1.96% | | Total servicing portfolio (UPB) | $141,673,464 | $153,385,817 | - Loan origination volume plummeted by **77.1%** YoY, from **$21.6 billion** in Q1 2022 to **$4.9 billion** in Q1 2023, with refinance volume dropping nearly **90%**[148](index=148&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) - The **70.2% decrease** in 'Gain on origination and sale of loans, net' was driven by reduced volume and a significant decrease in fair value gains from hedging instruments, which was partially offset by lower fair value losses on IRLCs[155](index=155&type=chunk) - Personnel expense decreased by **$205.0 million (59.2%)**, reflecting volume-related commission declines and lower salaries & benefits from a **51.9% reduction** in headcount as part of cost-saving initiatives[160](index=160&type=chunk) - Servicing expense decreased by **$16.7 million (77.5%)** due to the completion of the transition of the servicing portfolio to the company's in-house platform in early 2023[165](index=165&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) - As of March 31, 2023, the company had **$798.1 million** in unrestricted cash and cash equivalents and **$2.1 billion** in available capacity under its warehouse and other lines of credit[170](index=170&type=chunk) - The company suspended its regular quarterly dividend effective March 31, 2022, and for the foreseeable future to manage its balance sheet and capital[185](index=185&type=chunk) Contractual Obligations as of March 31, 2023 | (In thousands) | Total | Less than 1 Year | 1-3 years | 3-5 Years | More than 5 Years | | :--- | :--- | :--- | :--- | :--- | :--- | | Warehouse and other lines of credit | $1,830,319 | $1,330,319 | $500,000 | $— | $— | | Debt obligations | $2,314,287 | $963,830 | $847,982 | $— | $502,475 | | Operating lease obligations | $69,489 | $22,621 | $30,207 | $15,006 | $1,654 | | **Total contractual obligations** | **$4,301,164** | **$2,337,400** | **$1,416,128** | **$27,006** | **$520,629** | [Non-GAAP Measures](index=43&type=section&id=Non-GAAP%20Measures) - The company uses non-GAAP measures like Adjusted Total Revenue, Adjusted Net Income (Loss), and Adjusted EBITDA (LBITDA) to provide investors with additional perspectives on performance by excluding volatile items like fair value changes of MSRs and non-cash expenses like stock-based compensation[195](index=195&type=chunk) Reconciliation of Net Loss to Adjusted LBITDA (Unaudited) | (In thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net loss | $(91,721) | $(91,318) | | Adjustments: | | | | Interest expense — non-funding debt | 43,090 | 14,393 | | Income tax benefit | (14,862) | (11,627) | | Depreciation and amortization | 10,026 | 10,545 | | Change in fair value of servicing rights, net | 18,289 | 1,295 | | Stock-based compensation expense | 5,926 | 2,309 | | **Adjusted LBITDA** | **$(29,336)** | **$(74,403)** | [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations impacting loan volumes and asset values, mitigated by hedging instruments, alongside credit and prepayment risks - The company's principal market exposure is interest rate risk, which affects loan origination volumes, margins, and the value of assets like LHFS, IRLCs, and servicing rights[211](index=211&type=chunk) - To manage interest rate risk on IRLCs and LHFS, the company enters into various hedging instruments, expecting their fair value to move opposite to the hedged assets, thereby reducing earnings volatility[213](index=213&type=chunk) - Credit risk arises from representations and warranties on sold loans. The company may be required to repurchase loans or indemnify purchasers for breaches, and it maintains a provision for these potential losses based on historical experience and economic factors[214](index=214&type=chunk)[215](index=215&type=chunk) [Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that as of March 31, 2023, the company's disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of March 31, 2023, the company's disclosure controls and procedures are effective to provide reasonable assurance that required information is recorded and reported in a timely manner[221](index=221&type=chunk) - No material changes were identified in the company's internal control over financial reporting during the first quarter of 2023[222](index=222&type=chunk) [PART II. OTHER INFORMATION](index=48&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) The company is defending against a securities class action lawsuit and multiple shareholder derivative complaints alleging false disclosures and breach of fiduciary duties, which management believes are without merit - The company is defending against a consolidated putative class action lawsuit alleging false and/or misleading disclosures in connection with its IPO and subsequent statements. A motion to dismiss was partially granted and partially denied in January 2023[225](index=225&type=chunk) - Multiple shareholder derivative lawsuits have been filed against certain directors and officers, alleging breach of fiduciary duties. These actions are currently stayed pending developments in the securities class action[226](index=226&type=chunk)[228](index=228&type=chunk) [Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's 2022 Annual Report on Form 10-K were reported - No material changes in risk factors were reported from the company's 2022 Form 10-K[229](index=229&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2023, the company issued 1,555,870 shares of Class A common stock through conversions of Class C common stock and Holdco Units, exempt from registration - In Q1 2023, the company issued **1,555,870 shares** of Class A common stock upon the conversion of Class C common stock and Holdco Units by stockholders on three separate occasions[231](index=231&type=chunk)[232](index=232&type=chunk) [Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including amendments to credit and repurchase agreements, settlement agreements, and required officer certifications - Key exhibits filed include amendments to master repurchase and credit agreements with various financial institutions, a settlement agreement with Anthony Hsieh, and CEO/CFO certifications[237](index=237&type=chunk)

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 loanDepot, Inc. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 (Exact Name of Registrant as Specified in Its Charter) (State or other jurisdiction of incorporatio ...

loanDepot, Inc. (NYSE:LDI) Q4 2022 Earnings Conference Call March 8, 2023 5:00 PM ET Company Participants Gerhard Erdelji - SVP, IR Frank Martell - President and CEO Patrick Flanagan - CFO Jeff Walsh - LDI Mortgage President Conference Call Participants Doug Harter - Credit Suisse Brad Capuzzi - Piper Sandler Kyle Joseph - Jefferies Blake Netter - Morgan Stanley Bob Napoli - William Blair Operator Good afternoon, and welcome to loanDepot's Year-end and Fourth Quarter 2022 Conference Call. [Operator Instruc ...

4Q 2022 INVESTOR PRESENTATION March 8, 2023 Forward-Looking Statements and Other Information 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 bus ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's financial statements, highlighting a significant downturn in assets and a shift to net losses driven by challenging market conditions [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The financial statements for the period ended September 30, 2022, show a substantial decrease in total assets and a shift from net income to a net loss [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets significantly decreased to **$7.4 billion** as of September 30, 2022, primarily due to a reduction in loans held for sale, with corresponding declines in liabilities and equity | Balance Sheet Item | Sep 30, 2022 (Unaudited) ($) | Dec 31, 2021 ($) | | :--- | :--- | :--- | | **Total Assets** | **$7,378,536** | **$11,812,313** | | Cash and cash equivalents | $1,143,948 | $419,571 | | Loans held for sale, at fair value | $2,692,820 | $8,136,817 | | Servicing rights, at fair value | $2,030,026 | $2,006,712 | | **Total Liabilities** | **$6,300,039** | **$10,182,953** | | Warehouse and other lines of credit | $2,529,436 | $7,457,199 | | Debt obligations, net | $2,283,704 | $1,628,208 | | **Total Equity** | **$1,078,497** | **$1,629,360** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a **net loss of $137.5 million** for Q3 2022 and **$452.6 million** for the nine months, a significant reversal from prior-year net income due to reduced loan origination gains | Metric | Three Months Ended Sep 30, 2022 ($) | Three Months Ended Sep 30, 2021 ($) | Nine Months Ended Sep 30, 2022 ($) | Nine Months Ended Sep 30, 2021 ($) | | :--- | :--- | :--- | :--- | :--- | | Total net revenues | $274,192 | $923,756 | $1,086,141 | $3,019,678 | | Total expenses | $435,125 | $744,771 | $1,602,038 | $2,364,054 | | **Net (loss) income** | **($137,482)** | **$154,277** | **($452,623)** | **$608,414** | | Diluted (Loss) earnings per share | ($0.37) | $0.40 | ($1.29) | $0.82 | [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly reversed to **$4.4 billion** for the nine months ended September 30, 2022, driven by loan sales, while financing activities showed a substantial outflow | Cash Flow Activity | Nine Months Ended Sep 30, 2022 ($) | Nine Months Ended Sep 30, 2021 ($) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $4,414,913 | ($2,058,838) | | Net cash provided by investing activities | $657,868 | $288,792 | | Net cash (used in) provided by financing activities | ($4,388,503) | $1,885,770 | | **Net change in cash** | **$684,278** | **$115,724** | [Notes to Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, including a **$42.1 million** non-cash impairment charge on goodwill and intangible assets, and amendments to debt covenants to maintain compliance - The company's primary income sources include gains on loan origination and sale, loan servicing income, and settlement service fees[30](index=30&type=chunk) - During Q2 2022, the company recognized a **goodwill impairment charge of $40.7 million** and an **intangible asset impairment of $1.4 million**, driven by declining market capitalization and rising interest rates[83](index=83&type=chunk)[85](index=85&type=chunk) - As of September 30, 2022, the company had **$5.7 billion** in warehouse and securitization facilities with an outstanding balance of **$2.5 billion**[99](index=99&type=chunk)[108](index=108&type=chunk) - The company amended certain warehouse lines and debt obligations related to profitability covenants, maintaining compliance with all financial covenants as of September 30, 2022[101](index=101&type=chunk)[114](index=114&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the significant decline in financial performance to rising interest rates, detailing revenue and expense impacts, balance sheet changes, and liquidity management under the 'Vision 2025 Plan' [Current Market Conditions and Vision 2025](index=44&type=section&id=Current%20Market%20Conditions%20and%20Vision%202025) Federal Reserve interest rate hikes have significantly impacted mortgage volumes, prompting the company to implement its 'Vision 2025 Plan' to reduce costs and adapt operations - The Federal Reserve's **3.75 percentage point rate hikes** since early 2022 have increased mortgage rates, anticipating continued declines in origination volumes through 2023[169](index=169&type=chunk) - The company's Vision 2025 Plan aims to address market conditions by focusing on purchase transactions, centralizing loan management, and right-sizing the cost structure[170](index=170&type=chunk) [Results of Operations](index=46&type=section&id=Results%20of%20Operations) Q3 2022 saw total net revenues fall **70.3%** to **$274.2 million** and a **net loss of $137.5 million**, driven by an **81% drop** in loan origination gains, with similar trends for the nine-month period | Metric | Q3 2022 ($) | Q3 2021 ($) | % Change | | :--- | :--- | :--- | :--- | | Total net revenues | $274,192 | $923,756 | (70.3)% | | Gain on origination and sale of loans, net | $156,300 | $821,275 | (81.0)% | | Total expenses | $435,125 | $744,771 | (41.6)% | | Personnel expense | $218,819 | $449,152 | (51.3)% | | **Net (loss) income** | **($137,482)** | **$154,277** | **(189.1)%** | | Metric | Nine Months 2022 ($) | Nine Months 2021 ($) | % Change | | :--- | :--- | :--- | :--- | | Total net revenues | $1,086,141 | $3,019,678 | (64.0)% | | Gain on origination and sale of loans, net | $665,993 | $2,647,328 | (74.8)% | | Total expenses | $1,602,038 | $2,364,054 | (32.2)% | | **Net (loss) income** | **($452,623)** | **$608,414** | **(174.4)%** | [Balance Sheet Highlights](index=53&type=section&id=Balance%20Sheet%20Highlights) Total assets decreased **37.5%** to **$7.4 billion** due to reduced loans held for sale, while cash increased **172.6%** and debt obligations rose **40.3%**, with goodwill and intangibles fully written off - Loans held for sale decreased by **$5.4 billion (66.9%)** from year-end 2021, reflecting a slowdown in origination activity relative to loan sales[207](index=207&type=chunk)[208](index=208&type=chunk) - Goodwill and intangible assets were entirely written off following a **non-cash impairment charge of $42.1 million** recognized in Q2 2022[212](index=212&type=chunk) - Debt obligations increased by **$655.5 million (40.3%)**, primarily due to a **$748.8 million** increase in secured credit facilities, partially offset by a **$97.5 million** repurchase of Senior Notes[214](index=214&type=chunk) [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2022, the company maintained **$1.1 billion** in unrestricted cash and **$3.1 billion** in available warehouse capacity, but net losses necessitated amending debt profitability covenants and suspending quarterly dividends - As of September 30, 2022, the company held **$1.1 billion** in unrestricted cash and cash equivalents and **$3.1 billion** in available capacity under its warehouse and other lines of credit[216](index=216&type=chunk) - Due to 2022 net losses, the company amended certain debt obligations related to profitability covenants and anticipates needing further amendments or waivers[224](index=224&type=chunk) - The company suspended its regular quarterly dividend effective March 31, 2022, as part of its balance sheet and capital management strategies[236](index=236&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks include interest rate, credit, and prepayment risks, with interest rate risk being most significant, managed through hedging instruments and loss provisions - The company's principal market exposure is to interest rate risk, impacting the fair value of Loans Held for Sale (LHFS), Interest Rate Lock Commitments (IRLCs), and servicing rights[258](index=258&type=chunk) - To manage interest rate risk, the company utilizes various hedging instruments, including forward sale contracts, for IRLCs, LHFS, and servicing rights[260](index=260&type=chunk) - Credit risk is managed by establishing a loan repurchase reserve for potential losses from breaches of representations and warranties on sold loans, requiring significant management judgment[261](index=261&type=chunk)[262](index=262&type=chunk) [Item 4. Controls and Procedures](index=63&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2022, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of September 30, 2022, the company's disclosure controls and procedures were effective in providing reasonable assurance for timely information recording, processing, and reporting[268](index=268&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter[269](index=269&type=chunk) [PART II. OTHER INFORMATION](index=63&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers other relevant information, including legal proceedings, updated risk factors, and details on equity security sales [Item 1. Legal Proceedings](index=63&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings and is vigorously defending against a putative securities class action and shareholder derivative lawsuits related to its February 2021 IPO disclosures - A putative securities class action lawsuit was filed against the company, directors, and officers, challenging IPO-related disclosures, with a motion to dismiss filed in August 2022[272](index=272&type=chunk) - Multiple shareholder derivative complaints alleging fiduciary duty breaches related to the same disclosures are stayed pending resolution of the securities class action's motion to dismiss[273](index=273&type=chunk)[275](index=275&type=chunk) [Item 1A. Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) New material risk factors include macroeconomic headwinds, particularly rising interest rates leading to net losses, and execution risks associated with the 'Vision 2025' plan, including potential debt covenant breaches - Macroeconomic conditions, especially rising interest rates, have substantially decreased revenues, resulting in net losses for the nine months ended September 30, 2022[277](index=277&type=chunk) - Due to quarterly losses, the company amended profitability covenants in its debt agreements and anticipates needing further, non-guaranteed amendments or waivers[278](index=278&type=chunk) - The Vision 2025 restructuring plan, involving significant staffing reductions, carries risks including unrealized benefits, loss of institutional knowledge, reduced morale, and potential employee claims[279](index=279&type=chunk)[282](index=282&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=65&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company issued Class A common stock in exchange for Class C common stock and Holding Units, exempt from registration, and purchased shares from employees for tax obligations related to restricted stock vesting - The company issued **6,593,660 shares of Class A common stock** between July 1, 2022, and October 1, 2022, upon conversion of Class C common stock and Holding Units[284](index=284&type=chunk)[285](index=285&type=chunk) [Other Information (Items 3-6)](index=65&type=section&id=Other%20Information%20%28Items%203-6%29) Items 3, 4, and 5 were noted as 'Not applicable', with Item 6 listing the exhibits filed as part of the 10-Q report - No defaults upon senior securities, mine safety disclosures, or other material information were reported for the period[287](index=287&type=chunk)[288](index=288&type=chunk)[289](index=289&type=chunk)

Financial Data and Key Metrics Changes - The company reported a net loss of $137 million in Q3 2022, down from $224 million in Q2 2022, indicating a significant narrowing of operating losses [11] - Total expenses for Q3 2022 decreased by $126 million or 22% from the prior quarter, driven primarily by lower personnel and marketing expenses [32][36] - Loan origination volume was $10 billion, a decrease of 38% from Q2 2022, with a significant shift towards purchase transactions [24][25] Business Line Data and Key Metrics Changes - The proportion of purchase transactions increased from 34% a year ago to 70% in Q3 2022, reflecting the company's strategy to focus on less interest rate-sensitive mortgage products [25] - The unpaid principal balance of the servicing portfolio decreased to $140 billion as of September 30, 2022, down from $155 billion in Q2 2022, primarily due to the sale of $19 billion in unpaid balances [27] - Servicing fee income decreased slightly from $117 million in Q2 2022 to $114 million in Q3 2022 [28] Market Data and Key Metrics Changes - The average 30-year mortgage rate increased by 100 basis points during Q3 2022, from 5.7% to 6.7%, impacting origination volumes [26] - The company anticipates the mortgage market to approximate $1.5 trillion in 2023, which is a key consideration for its expense reduction strategy [13][31] Company Strategy and Development Direction - The Vision 2025 strategic program focuses on transforming the originations business, rightsizing the cost structure, investing in profitable growth initiatives, and optimizing the organizational structure [9][10] - The launch of a digital HELOC solution is expected to contribute significantly to revenues in 2023, providing customers with quick access to home equity [15][17] - The company is also investing in purpose-driven lending through partnerships, such as the joint venture with National HomeCorp to serve underserved communities [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current challenging housing market, emphasizing the importance of liquidity and the potential for profitable growth through strategic initiatives [23][40] - The company expects to continue narrowing operating losses in Q4 2022, with origination volume guidance between $4 billion and $7 billion [37] Other Important Information - The company has approximately $1.14 billion in cash on hand and has identified $400 million in run-rate cost reductions [23][36] - The Vision 2025 plan has incurred charges totaling $37 million in Q3 2022, with expectations for additional charges in Q4 2022 [34] Q&A Session Summary Question: Outlook for cash and liquidity - Management highlighted a strong liquidity position and indicated no plans to sell bulk MSRs in Q4 2022, focusing instead on maintaining servicing sales at origination [39][41] Question: Demand for HELOC originations - Management sees HELOC as a significant opportunity in 2023, with narrowing spreads potentially increasing origination volumes [45] Question: Sensitivity of servicing portfolio to rising rates - Management noted limited sensitivity in the servicing portfolio to price moves due to the age and coupon of the portfolio, with expectations for a return game as more originations are added [46] Question: Impact of HELOC on first mortgage business - Management does not expect significant cannibalization of the first mortgage business by HELOC, viewing it as a complementary opportunity [53][55] Question: Guidance on margins - Management anticipates an increase in gain-on-sale margins in Q4 2022, driven by a focus on higher-margin products and exiting wholesale [58]

loan Depot 3Q 2022 INVESTOR PRESENTATION November 8, 2022 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, its business strategies, including the Vision 2025 plan, our digital HELOC, financial condition and liquidity, competitive position, industry and regulatory environment, potential growth opportunities, the effects of competition, operations and financial ...

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 June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 26642 Towne Centre Drive, Foothill Ranch, California 92610 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (888) 337-6888 Securities r ...

Loandepot, Inc. (NYSE:LDI) Q2 2022 Earnings Conference Call August 9, 2022 5:00 PM ET Company Participants Gerhard Erdelji - SVP, IR Frank Martell - CEO, President & Director Patrick Flanagan - CFO Conference Call Participants Douglas Harter - Crédit Suisse Trevor Cranston - JMP Securities Kevin Barker - Piper Sandler & Co. Patrick McIlwee - William Blair & Company Kyle Joseph - Jefferies Mark DeVries - Barclays Bank Operator Good afternoon and welcome everyone to loanDepot's Second Quarter 2022 Conference ...