LoanDepot cutting wholesale channel in profitability push

Abstract

The results are a far cry from last year's second quarter, when loanDepot reported $26.3 million in profit in its challenging first quarter as a public company. LoanDepot reported expenses of $560.6 million in the second quarter, just 7% lower than the first quarter's $606.2 million. The company is very close to identifying its target of annualized savings of $375 million to $400 million, with over half of the total in the process of being realized as of Tuesday, Martell said. The lender's net origination income fell by one-third to $39.1 million in the second quarter from $59.1 million the quarter prior - also a 57% decline from $92.6 million at the same time last year. The company reported a bright spot in rising servicing fee income, reporting $117.3 million in the second quarter compared to $111 million at the beginning of the year and $94.7 million the year prior. At the same time last year, loanDepot reported adjusted net income of $57.5 million. Net revenue declined approximately 38% to $308.6 million from the previous quarter's $503.3 million and 57% from $719.9 million year over year.