loanDepot CEO Remains Focused On Long-Term Strategy After Mixed 2021 Results


The CEO of loanDepot says they will continue to focus on their long-term strategy to become the most trusted homeowner fulfillment company in the world after the company released their results for 2021, which show a decline in net income but an increase in market share.

Anthony Hsieh, Founder and CEO of the California-based company, said they have the tools to pivot and adjust to market trends and their business was purpose-built with periods of pressure in mind.

“The results of 2021 are only a preview of what’s to come as we leverage our brand, develop and apply innovative technology solutions, drive down costs and add more products and services to help our customers successfully navigate one of the most important financial transactions of their lives,” Hsieh said in a statement.

loanDepot’s results for 2021 received media attention because net income for the fourth quarter decreased to $14.7 million as compared to $154.3 million in the third quarter.

The quarter-over-quarter decrease was primarily driven by the decrease in rate lock volume and gain on sale margin, partially offset by a decrease in total expense, according to the results.

Primarily as a result of lower net income, adjusted EBITDA for the fourth quarter of 2021 decreased to $63.7 million as compared to $238.3 million for the third quarter.

Total expenses for the fourth quarter decreased by $50.6 million, or 7% from the third quarter of 2021. This was due to lower personnel expenses – primarily lower commissions – and lower marketing expenses reflecting seasonal declines in spending.

Net income for all of 2021 decreased to $623.1 million, compared to $2 billion in the previous year, according to

Highlights from the results include achieved market share growth of 3.4% for the full year 2021, up from 2.5% in 2020.

Hsieh said in an interview with CNBC that his company has been successful. Since it was launched in 2010, loanDepot has funded more than $275 billion in mortgage loans.

“The company’s only 12 years old and we’ve grown by over 45% annually year-over-year for our first 12 years, so we’ve done a very good job passing Wells Fargo on our 10th year, an iconic brand. For us to help more customers in mortgages than someone like that, that tells you we’re doing something right.”

It is expected that with demand dropping in 2022 and interest rates going up that the entire industry will be affected.

Hsieh said loanDepot has to be agile and ready to pivot. He predicted the total adjustable market – even with a negative trend of lower volumes – is going to continue to grow because of population growth and overall loan size.

When asked about expenses and if he foresees jobs cuts, Hsieh said that everyone in the industry is going to have to adjust down.

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