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The company said in its 2023 earnings report on Tuesday that it will benefit when mortgage rates fall and application volumes rebound, after cutting $693 million in annual expenses and continuing to invest in technology.
LoanDepot was able to cut its fourth-quarter net loss to $60 million from $158 million in the final three months of 2022, thanks to a 35% annual revenue increase and a 12% decline in expenses.
The Irvine, Calif.-based bank had a full-year net loss of $236 million, which also improved from a net loss of $375 million in 2022.
Frank Martell, chief executive of LoanDepot, said in a report, “LoanDepot has made substantial progress in 2023, significantly adjusting our cost structure and making key investments in our technology platform and business processes, which we believe positions us to grow from mortgage Benefiting from an eventual rebound in loan volumes.” statement.
LoanDepot sees mortgage originations drop 58% in 2023
Source: LoanDepot earnings reports.
As mortgage rates soared last year, loanDepot’s loan origination volume fell 58% in 2023 from the previous year to $22.7 billion.
Mortgage originations declined more modestly in the fourth quarter of 2023, to $5.37 billion, down 16% from the same period last year.
In dollar terms, home purchase loans accounted for 76% of loans originated, up from 19% in the first quarter of 2021, as higher interest rates discouraged homeowners from refinancing.
In reporting Q4 and 2023 earnings, loanDepot said it expects total loan originations in the first three months of 2024 to be between $3.5 billion and $5.5 billion – considering Q1 is due in less than 3 weeks To conclude, this range is quite large.
Company officials in November provided a similarly broad scope for fourth-quarter mortgage originations, saying they expected total loan originations to be between $4 billion and $6 billion.
LoanDepot sharesThe stock, which has traded as low as $1.14 and as high as $3.71 over the past 12 months, fell 4% in after-hours trading Tuesday to close at $2.54 ahead of the earnings release.
LoanDepot started 2022 with 11,300 employees and has shed more than 7,000 employees through layoffs and natural attrition. The company continued to cut jobs in the final three months of 2023, eliminating 282 positions, leaving its full-year headcount at 4,250.
The company hopes to achieve another $120 million in annual cost reductions this year, and as of February 29, it had achieved about 86% of that goal. loanDepot said it has a cash balance of $661 million and “continues to maintain a strong liquidity position.”
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