loanDepot Budget Cuts Aren’t Stopping Hemorrhaging Losses As Company Sees 38% Loss In Revenue For 4th Quarter
loanDepot budget cuts and significant expense reductions don’t seem to be working. The lender keeps lost money even after exiting the wholesale channel and cutting thousands of jobs. loanDepot reported heavy losses for both the fourth quarter of 2022 and the full year.
The company reported a net loss in the fourth quarter of $157.8 million. This is nearly 15% worse than the loss of $137.5 million it reported in the previous quarter.
It was the company’s third consecutive quarterly loss.
loanDepot reported a net loss of $610.4 million for 2022. This compared to a net profit of $623.2 million for 2021.
The company’s losses came as quarterly revenue fell to $169.7 million. This is down 38% from the third quarter and full-year revenue falling to $1.3 billion from 2021. That was primarily due to declines in loan origination volumes. loanDepot saw a 35% drop from the third quarter to $6.4 billion, and a 61% year-over year decline to $53.8 billion.