loanDepot(LDI) - 2024 Q3 - Quarterly Report

Financial Performance - Total net revenues for the three months ended September 30, 2024, were $314.6 million, an increase of 18.4$265.7 million for the same period in 2023[9]. - Gain on origination and sale of loans, net, reached $198.0 million for the three months ended September 30, 2024, up 32.9$148.8 million in the prior year[9]. - Net income attributable to loanDepot, Inc. was $1.4 million for the three months ended September 30, 2024, compared to a net loss of$16.6 million for the same period in 2023[9]. - Total expenses for the three months ended September 30, 2024, were $311.0 million, slightly up from$305.1 million in the same period last year[9]. - Basic earnings per share for the three months ended September 30, 2024, was $0.01, compared to a loss of$0.09 per share in the prior year[9]. - The company reported a net loss of $134.7 million for the nine months ended September 30, 2024, compared to a net loss of$175.7 million for the same period in 2023[9]. - The total net revenues for the nine months ended September 30, 2024, were $802.8 million, an increase of 7.7$745.4 million in the same period of 2023[9]. Cash Flow and Liquidity - Cash flows from operating activities resulted in a net cash used of $905.982 million for the nine months ended September 30, 2024, compared to a net cash provided of$31.203 million in the prior year[20]. - The cash and cash equivalents at the end of the period were $578.641 million, down from$831.961 million at the end of the same period in 2023[20]. - As of September 30, 2024, unrestricted cash and cash equivalents were $483.0 million, with additional available capacity under credit lines of$534.3 million[187]. - The company maintained borrowing capacity totaling $3.1 billion under warehouse and securitization facilities, with$2.6 billion of borrowings outstanding[191]. Loan Originations and Servicing - The total originations of loans for the nine months ended September 30, 2024, were $17.026 billion, slightly down from$17.097 billion in the same period of 2023[20]. - The company originated and purchased loans totaling $6,545,027 during the three months ended September 30, 2024, compared to$6,005,613 in the same period of 2023[53]. - For the nine months ended September 30, 2024, loans originated for properties located in California accounted for approximately 18% of total loan originations[35]. - The servicing portfolio's unpaid principal balance decreased to $114,915,206 thousand in September 2024 from$143,959,705 thousand in September 2023[149]. Cybersecurity Incident - The company recognized $22.8 million in expenses related to a cybersecurity incident during the nine months ended September 30, 2024, net of insurance recoveries[26]. - The company has initiated an investigation and taken steps to remediate a cybersecurity incident affecting sensitive personal information of approximately 16.9 million individuals[25]. - The company is involved in ongoing legal proceedings related to a cybersecurity incident, with potential material impacts on its financial condition and operations[128]. Debt and Liabilities - Total liabilities as of September 30, 2024, were$3,737,386 million, with secured debt obligations of $1,151,280 million and warehouse lines of credit totaling$2,565,713 million[73]. - The company’s total liabilities in the securitization and SPE VIEs were $827,598 million as of September 30, 2024, down from$902,689 million as of December 31, 2023[81]. - The company’s interest rate swap futures liabilities were recorded at $5,468 million as of September 30, 2024[73]. - The company’s forward sale contracts liabilities were$100,709 million as of December 31, 2023, with a net amount of $23,540 million after offsets[74]. Equity and Shareholder Information - Basic earnings per share for Class A common stock was$0.01 for the three months ended September 30, 2024, while diluted earnings per share was also $0.01[112][114]. - The net loss allocated to common stockholders for the nine months ended September 30, 2024, was$(65,097) thousand[114]. - The noncontrolling interest related to LD Holdings was $280.7 million as of September 30, 2024, down from$351.3 million as of December 31, 2023[110]. - The company had 2,305,379 anti-dilutive shares excluded from the computation of diluted earnings per share for the three months ended September 30, 2024[118]. Operational Efficiency - Personnel expenses rose to $161,330 thousand, a 14.1$141,432 thousand in the same quarter last year[152]. - General and administrative expenses decreased by $23.5 million, or 50.6$19.6 million reduction in professional and consulting services related to a cybersecurity incident[163]. - Direct origination expenses increased by $7.4 million, or 46.8%, due to higher loan originations and industry-wide increases in credit reporting fees[162]. Market Conditions and Future Outlook - The Company anticipates continued market challenges but believes that the implementation of Project North Star will allow it to capture higher market volumes[144]. - The Company’s mortgage loan refinancing volumes are influenced by changes in interest rates, with rising rates impacting affordability and qualification for homebuyers[143].