Loandepot, Inc. · NYSE:LDI
Loandepot — Q3 2024 Earnings Presentation
16 slides from Loandepot's earnings presentation, Nov 5, 2024
Slide 1: 3Q 2024 Investor Presentation
3Q 2024 INVESTOR PRESENTATION November 7, 2024
Slide 2: Disclaimer: Forward-Looking Statements and Other Information
DISCLAIMER 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, ongo
Slide 3: We make the American Dream of home possible
We make the American Dream of home possible. Partnering with homeowners throughout the lifecycle of the homeownership journey. Finding An Agent Serving the Buyer Supporting The Servicing the Mortgage Optimizing the Journey Managing the Purchase Home First Time HELOC Local Building Homebuyer Title So
Slide 4: Third Quarter Fact Sheet
THIRD QUARTER FACT SHEET • Originations: $6.7 billion in funded volume, on the high-end third quarter 2024 guidance • Total Revenue: $314.6 million on $6.7 billion of pull-through weighted lock volume; Adjusted revenue of $329.5 million • Total Expenses: Increased by $5.9 million, or ~2% from the th
Slide 5: Vision 2025 Project North Star
PROJECT NORTH STAR VISION 2025 PROJECT NORTH STAR 2022-2024 2025-2027 Completed Strategic Imperatives and Achieve Differentiation & Durable Business Achieved Profitability Model Weather the storm & build the foundation Pivot to first time home buyer, lifecycle relationship model supported by low-cos
Slide 6: Diverse & Experienced Management Team with Unique Skillsets
DIVERSE & EXPERIENCED MANAGEMENT TEAM WITH UNIQUE SKILLSETS Frank Martell David Hayes Jeff Walsh Dan Binowitz Jeff DerGurahian Gregg Smallwood President and CEO Chief Financial Officer President, LDI Mortgage Managing Director Chief Investment Officer and Chief Legal Officer, Servicing Head Economis
Slide 7: Scaled Originator Delivering Customers a Complete Solution
SCALED ORIGINATOR DELIVERING CUSTOMERS A COMPLETE SOLUTION 2010 Established Scalable 2013 Diversification 2016 Brand, Technology & 2022 Project to to & Expansion to To Vision 2025 2025+ 2012 Infrastructure 2015 2021 Operational Transformation 2024 North Star • Launched with the goal of • Expanded in
Slide 8: Origination Growth Relative to Industry
ORIGINATION GROWTH RELATIVE TO INDUSTRY Total Market 3.0% 2.9% 3.1% 2.4% 2.1% 1.6% 1.7% 1.5% 1.5% 1.5% 1.2% 1.4% 1.4% Share (%)(1) ($ in billions) 350 329 $60 322 299 293 296 281 285 300 274 $50 250 221 226 213 $40 203 200 $30 150 150 $20 100 $10 50 $30 $32 $23 $29 $20 $22 $12 $16 $9 $10 $4 $6 $5 $5
Slide 9: Historical Cost Structure Comparison ($M)
HISTORICAL COST STRUCTURE COMPARISON ($M) $31 $28 $28 $34 $53 $36 $45 $47 $43 4,615 $45 Direct Origination Expense 4,532 $97 Commissions $81 $82 $73 $47 Marketing Other Interest 4,250 4,246 $21 Other G&A $20 $14 $107 $97 $97 4,188 $98 $17 $96 $15 Salaries $54 $44 $45 $36 $36 FTEs Volume Volume Volum
Slide 10: Historical Servicing Portfolio Trend
HISTORICAL SERVICING PORTFOLIO TREND ($ in billions) Portfolio @ 9/30/24 (3) 143 W.A. Coupon 3.73% 137 138 137 133 $150 140 W.A. FICO (3) 730 120 W.A. LTV 74% $130 W.A. Age (Mths) 34.3 100 DQ Rate $110 60D+ 1.4% 80 60 90D+ 1.1% $90 Composition 40 GSE 56.5% $70 20 Gov’t 34.1% $144 $145 $142 $114 $115
Slide 11: Strong Liquidity and Balance Sheet
STRONG LIQUIDITY AND BALANCE SHEET Liquidity Overview ($M) MSR FV / Total Equity 3.1x 2.8x 2.7x 2.7x 2.6x $721 $661 $4 $604 12% $- $- $533 11% $483 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 $- 10% $- 9% $717 Debt Obligations, net to Total Equity $661 $604 8% 3.6x $533 3.4x 3.3x $483 3.2x 2.9x Q3 '23 Q4 '23
Slide 12: Q4 2024 Outlook
Q4 2024 OUTLOOK* Current Market Metric Low High Conditions • Higher interest rates and home price appreciation adversely Pull-through Weighted impacts home affordability and $5.5 $7.5 Rate Lock Volume ($bn) borrower demand • Limited supply of new and resale homes adversely impacts homebuying activit
Slide 13: Appendix
loanDepot APPENDIX
Slide 14: Balance Sheet & Servicing Portfolio Highlights
BALANCE SHEET & SERVICING PORTFOLIO HIGHLIGHTS 3Q’24 vs 3Q’24 vs $ in MM except units and % 3Q ’24 2Q ’24 3Q ‘23 2Q’24 3Q’23 Cash and cash equivalents $483.0 $533.2 $717.2 (9.4%) (32.7%) Loans held for sale, at fair value 2,790.3 2,378.0 2,070.7 17.3% 34.8% Servicing rights, at fair value 1,542.7 1,
Slide 15: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION ($MM) 3Q ‘24 2Q ‘24 3Q ’23 Adjusted Revenue Total Net Revenue $314.6 $265.4 $265.7 Valuation changes in in Servicing Rights, Net of Hedge 14.9 12.6 (4.5) Adjusted Total Revenue $329.5 $278.0 261.1 Net (Loss) Income $2.7 ($65.9) ($34.3) Interest Expense - Non-Funding
Slide 16: Non-GAAP Financial Reconciliation (Cont'd)
NON-GAAP FINANCIAL RECONCILIATION (CONT’D) ($MM) 3Q ‘24 2Q ’24 3Q ’23 Net Income (Loss) $2.7 ($65.9) ($34.3) Adjustments to Income Taxes (0.3) 8.8 4.8 Tax-Effected Net Income (Loss) $2.3 ($57.0) ($29.4) Valuation changes in in Servicing Rights, Net of Hedge 14.9 12.6 (4.5) Stock-Based Compensation E