LoanDepot closes $300 million warehouse securitization
Based in California loanDepot announced Monday that it has closed an offering of $300 million in notes backed by a revolving line of credit and backed by mortgages.
LoanDepot said this is the tenth time it has completed such a transaction. It is pursuing other strategies to strengthen its financial position, including selling mortgage servicing rights (MSRs) and extending debt.
David Hayes, the company’s Chief Financial Officer, said in a statement that the transaction “demonstrates LoanDepot’s financing strategy and attractive alternatives for raising capital as we continue to focus on delivering exceptional service to our customers throughout the trajectory of their home ownership.”
The notes were offered by Mello Warehouse Securitization Trust 2024-1 and backed by newly issued first-lien, fixed-rate and adjustable-rate residential mortgages. The loans are produced according to criteria Fannie Mae Freddie Mac And Ginny Mae.
LoanDepot said the notes will mature on the two-year anniversary of the original purchase date, if the company exercises its right to prepay in full; or in the event of default, according to filings with the Securities and Exchange Commission (SEC).
Under Frank Martell’s leadership, LoanDepot has improved its balance sheet and reduced its losses. LoanDepot reported a non-GAAP adjusted net loss of $16 million in the second quarter, compared to a loss of $39.5 million in the first quarter.
During the second quarter, the company extended approximately $500 million of debt maturing in 2025, reducing outstanding corporate debt by $137 million. It also sold MSRs of low-coupon products from the 2020 and 2021 vintages, bringing its total unpaid principal balance (UPB) to $114 billion as of June 30, up from $142 billion as of March 31.
