LoanDepot’s latest earnings report offered a turning point of sorts, celebrating the implementation of its outgoing “Vision 2025” strategic program and ushering in a new initiative, dubbed “Project North Star.”
According to the company’s third-quarter results statement, the implementation of the Vision 2025 strategy, which kicked off nearly three years ago, culminated in a return to profitability in Q3. The period was the first profitable quarter since Q1 2022 for LoanDepot, with what the company termed as “modest improvements” in loan volume leading to an increase in revenue.
LoanDepot’s non-GAAP adjusted net income came in at $7.08 million for the third quarter, a vast improvement over the previous quarter’s $15.9 million deficit and the loss of $29.2 million in the third quarter of last year. Accounting for GAAP, the company’s net income was $2.67 million, with increased revenues bringing that figure up from a loss of $65.85 million quarter over quarter and $34.26 million year over year.
Loan origination volume for Q3 2024 was at $6.7 billion, up by $0.6 billion (9%) from the quarter prior. Purchase volume continued to dominate the company’s loan makeup, but with lower rates leading to more refinances during the quarter, purchase share relaxed from 71% to 66% year over year.
Frank Martell, president and CEO of LoanDepot, also noted that ongoing efforts by the company to rein in costs and increase productivity have helped fund “strategic investments” in both technology and staffing — investments that Martell said should be a solid foundation for its new Project North Star plan.
“Vision 2025, launched in July of 2022, was a critical factor in our successful navigation of unprecedented and challenging market conditions over the past three years,” added Martell. “The launch of Project North Star builds on the strategic pillars of Vision 2025, including our focus on durable revenue growth, positive operating leverage, productivity and investments in platforms and solutions that support our customer’s homeownership journey.”
