Clarification on the size of the MSR sale (reported as $12B in presentation vs. $10B mentioned) and the expected cash proceeds.

David Hayes clarified the MSR sale was $10 billion, acknowledging a potential typo in the presentation. Jeff DerGurahian stated that the trade executed well through their marks, but did not quantify the exact cash proceeds. “So the sale was $10 billion. I'll double check what your reference was on the $12 billion. We did do a $12 million cost savings program, which was announced. But the overall sale of the portfolio was $10 billion.”

What drove the sequential decline in recapture rate, and what level should be expected going forward?

Anthony Hsieh attributed the decline primarily to rising interest rates in Q2, making refinance less attractive. He expects recapture to increase as the home equity offering continues to develop, and does not anticipate a material change in Q3. “You know, there's really no particular cause, [ Caroline ]. I would guess that it's due to the fact that interest rates went up Q2 over Q1. So anytime rates go up, you'll have less attractiveness for consumers.”

Can you provide quantitative metrics on the wholesale channel's current standing and whether it's tracking ahead or behind expectations since its reintroduction?

Anthony Hsieh stated that the wholesale business is a complement, not a major contributor, but it is tracking ahead of schedule since its reintroduction 5-6 months ago, with positive responses from the broker community. “So far, I think it's been 5 or 6 months since we introduced it. We are tracking ahead of schedule. And so far the business is doing quite well. We've had positive responses from the broker community.”

LDI

loanDepot (LDI) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Financials· Aug 4, 2026

Source: earnings call transcript

Executive summary

loanDepot Q2 FY26 — Home Equity Expansion Drives Improved Profitability

loanDepot is executing a strategic transformation, pivoting into home equity lending and leveraging technology to drive efficiency and market share growth. The company reported improved financial performance in Q2 FY26, with a narrowed net loss and increased unit volume, primarily due to the success of its home equity product and enhanced operating leverage. Management remains focused on cost containment and capital structure optimization while preparing for future market opportunities.

Highlights

Adjusted total revenue increased to $308 million in Q2 from $299 million in Q1.
Adjusted net loss narrowed substantially to $29 million in Q2 from $34 million in Q1.
Unit volume increased by 25% from Q1, reflecting success in home equity lending.
Purchase market share increased by 33% in Q2, reinforcing diversified origination platform.
Pull-through weighted gain on sale margin expanded to 345 basis points in Q2 from 271 basis points in Q1.

Concerns

Pull-through weighted rate lock volume decreased 20% sequentially to $6.6 billion in Q2.
Cash decreased by $48 million from Q1, ending the quarter with $229 million.

Guidance & targets

Category	Target	Timeline	Confidence
Pull-through weighted lock volume	$5.25 billion to $7.25 billion high materiality	Q3 · FY26	High
Origination volume	$6.25 billion to $8.25 billion high materiality	Q3 · FY26	High
Pull-through weighted gain on sale margin	360 to 390 basis points high materiality	Q3 · FY26	High
Total expenses	decrease somewhat medium materiality	Q3 · FY26	Medium
Annualized productivity initiatives	$12 million medium materiality	Remainder of FY26	High

Deals & partnerships

Builder partners Expansion of core mortgage franchise by adding builder partners in the joint venture channel.

loanDepot believes it is the #1 independent mortgage company financing new home construction for builders, indicating a critical competitive advantage.

Risks & headwinds

Rising interest rates Q2 FY26

Interest rates rose meaningfully beginning in March.

Mitigation:Suppressed demand for first trust deed loans, but demand for higher margin 5x5 home loan HELOC products increased, leading to a product mix shift.

Cash decrease Q2 FY26

$48 million decrease from Q1

Mitigation:MSR sale and other financing strategies in-flight should mitigate this decrease going forward.

Bond maturities

Not quantified, but stated as a high priority.

Mitigation:Management is evaluating a range of options with retained advisers to optimize capital structure.

What to watch in Q3 FY26

HELOC volume growth and mix shift

Q3 FY26

Current 25% unit volume increase QoQ, driving 345 bps GOS margin

Target Continued momentum and upward slant to margins

Why it matters

The continued success of the HELOC product is central to loanDepot's strategy for profitability and market share growth in the current rate environment.

So over Q3, we expect home equity to continue. But your question of what is the ratio there, it really depends on the interest rate sort of movement. Because as rates do fall, you're going to see the return of first mortgages. But if it stays static, I think you can safely assume that we will continue to penetrate and grow our HELOC volume, which ultimately will slant the margins upward.

Find out whether LDI delivers this. Inve re-checks your case every morning.

Q&A highlights

How should the mix between HELOC and first mortgage influence Q3 guidance, and how is gain on sale margin trending on a like-for-like basis?

Anthony Hsieh explained that HELOC momentum is expected to continue, especially if rates remain static, as it's a new market for loanDepot. The mix depends on interest rate movements, with falling rates bringing back first mortgages. He highlighted the company's unique ability to generate leads and develop loan officers for HELOCs, which will slant margins upward.

“The home equity market, Doug, has been a strategy since my return. It has taken some time to retool marketing, retool technology, and to retool our point of sale system as well as retraining of our sales staff. So over the course of the last 6 months, this is starting to prove some traction.”

asked by Douglas Harter · answered by Anthony Hsieh

2 min read 5 chapters

Detailed narrative

Strategic Pivot to Home Equity Lending

loanDepot has made a significant strategic expansion into home equity lending, targeting a market supported by approximately $35 trillion of U.S. homeowner equity. This market is more stable, less rate-sensitive, and less seasonal than traditional mortgage lending, offering higher gain on sale and revenue with lower production costs.

The company increased unit volume by 25% in Q2, driven by this pivot, and expects continued momentum as it leverages its lead generation and loan officer development capabilities.

Operational Efficiency and Technology Investments

The company's transformation agenda has led to measurable improvements in efficiency, including a 70% increase in return on marketing, a 50% increase in marketing lead to funded loan conversion, and a 34% reduction in marketing cost per funding over the past year.

Total cost per funded loan decreased by 12%, and funded loan units per loan officer increased by 18%. loanDepot is actively leveraging its proprietary platform and AI-enabled capabilities to enhance productivity, customer experience, and drive operating leverage.

Market Share Growth and Diversified Platform

loanDepot achieved a 33% increase in purchase market share in Q2 and is positioned as the #1 independent mortgage company financing new home construction for builders. The company's multi-channel distribution, including retail, partner, wholesale, and direct lending platforms, provides a competitive advantage.

Its ability to organically develop loan officers, with an 18% increase in net loan officer count over the past year, further supports its growth strategy.

Capital Management and Liquidity Strategy

Maintaining a strong liquidity position is a top priority. Post-quarter end, loanDepot monetized approximately $10 billion of its servicing rights, with the trade expected to settle later in the year. The company also repurchased $16 million of senior notes at 90% of par during Q2 and an additional $27 million at 86% of par post-quarter end.

Management continues to evaluate opportunities to optimize its capital structure and address bond maturities.

Competitive Landscape and Market Dynamics

Management noted no increased competitive pressure and observed some competitors exiting or changing their mortgage market strategies. The company's ability to hold margins in purchases and refinances, coupled with its entry into the home equity market, has allowed it to make progress in market penetration. The net loss significantly narrowed from $15 million in April to $2 million in June, demonstrating clear progress in profitability.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.