PR Newswire | Feb 18, 2021 07:31AM EST

02/18 06:30 CST

loanDepot Announces Fourth Quarter and Full Year 2020 Financial ResultsIndustry disruptor, loanDepot, continues to redefine modern lending and reports record results- Record quarterly and annual loan originations of $37.4 billion and $100.8 billion, respectively- Record annual revenue of $4.3 billion and net income of $2.0 billion FOOTHILL RANCH, Calif., Feb. 18, 2021

FOOTHILL RANCH, Calif., Feb. 18, 2021 /PRNewswire/ -- loanDepot, Inc. and its subsidiaries (NYSE: LDI) (collectively, "loanDepot" or the "Company"), the innovative consumer lending and real estate services provider that is using its proprietary mello(r) technology to deliver best-in-class experiences to its customers, today announced results for the fourth quarter and year ended December 31, 2020.

loanDepot's assets are unlike any other lender in the marketplace today:

- Diversified strategy Integrated at-scale refinance and purchase business ensures that loanDepot thrives in any mortgage market. The Retail strategy has 2,300+ employee loan officers serving customers online and in local markets nationwide. The Partner strategy has significant relationships with some of the largest home builders, financial institutions, real estate and mortgage brokers across the nation.

- Data and Analytics loanDepot has harnessed the power of its data science and proprietary AI and machine learning models, dramatically widening the Company's top-of-funnel marketing reach, gaining market share, significantly driving down customer acquisition cost and increasing sales productivity.

- Brand loanDepot has the second-most recognized brand in the industry today and has continued to invest in its brand strength through the "Home Means Everything" national ad campaign and partnership with Major League Baseball as its exclusive mortgage partner.

- Technology loanDepot's proprietary technology platform, mello(r), is core to all operations, which maximizes loan officer closings, reduces cycle times and improves customer satisfaction. mello(r) also allows the Company to easily add new products and services, whether organic or acquired.

"I'm incredibly proud of and humbled by our record-breaking 2020 performance and thank our team members for their passionate commitment to our customers during an unprecedented year," said Founder and CEO Anthony Hsieh.

"Customers gravitate to the loanDepot brand because we think and do differently. We are able to efficiently and effectively serve homeowners and future homeowners through our Retail and Partner channels, with the best proprietary data science, AI, machine learning and technology available, which ensures we are serving customers the way they wish to be served through the most important financial transaction of their lives. As we continue our growth trajectory and expand our product and service offerings, we will do so in a way that delivers satisfaction and value for our customers, partners, team members and shareholders for decades to come."

Fourth Quarter Earnings CallManagement will host a conference call and live webcast today at 11:00 a.m. ET on loanDepot's Investor Relations website, investors.loandepot.com, following the release of its earnings results.

Financial Summary

Three Months Ended Year Ended

($ in December 31, September 30, December 31, December 31, December 31, thousands) 2020 2020 2019 2020 2019 (Unaudited)

Rate lock $49,711,270 $49,280,386 $20,347,563 $160,984,531 $75,262,459 volume

Loan origination37,395,352 27,157,669 16,055,972 100,760,151 45,324,026 volume

Gain on 3.38 %4.98 %2.36 %4.27 %2.81 %sale margin



Financial Results

Total $1,298,394 $1,368,930 $415,292 $4,312,174 $1,337,131 revenue

Total 750,433 640,014 401,116 2,296,816 1,304,460 expense

Net income 547,170 728,349 16,213 2,013,110 34,420



Non-GAAP Financial Measures^ (1)

Adjusted total $1,252,707 $1,345,550 $407,197 $4,252,907 $1,346,178 revenue

Adjusted 375,711 524,819 4,675 1,461,617 31,885 net income

Adjusted 530,364 745,499 29,499 2,084,536 124,005 EBITDA

^(1) We believe Adjusted Total Revenue, Adjusted EBITDA, and Adjusted NetIncome provide useful information to investors regarding our results ofoperations because each measure assists both investors and management inanalyzing and benchmarking the performance and value of our business. Theyfacilitate company-to-company operating performance comparisons by backing outpotential differences caused by variations in hedging strategies, changes invaluations, capital structures (affecting net interest expense), taxation, theage and book depreciation of facilities (affecting relative depreciationexpense) and the amortization of intangibles, which may vary for differentcompanies for reasons unrelated to operating performance, as well as certainhistorical cost (benefit) items which may vary for different companies forreasons unrelated to operating performance. See "Non-GAAP Financial Measures"for a discussion of how we define and calculate Adjusted Total Revenue,Adjusted EBITDA and Adjusted Net Income.

Operational Results

* Record rate lock volume of $49.7 billion during the fourth quarter of 2020 resulted in quarterly total revenue of $1.3 billion. Fourth quarter 2020 revenue declined by $70.5 million, or 5%, from the third quarter of 2020 due to gain on sale margins returning to a more normalized level of 3.38% during the fourth quarter of 2020. For the year ended December 31, 2020, rate lock volume set a Company record at $161.0 billion resulting in total revenue of $4.3 billion from gain on sale margin of 4.27%. * Loan origination volume for the fourth quarter of 2020 was also a record at $37.4 billion, an increase of $10.2 billion or 38% from the third quarter of 2020. Loan origination volume for the year ended December 31, 2020 totaled $100.8 billion, an increase of 122% from loan origination volume for the year ended December 31, 2019. * Our Retail and Partner strategies delivered a record $28.3 billion of purchase loan originations during 2020, which represented an increase of 53% from the prior year, while refinance loan originations of $72.5 billion represented an increase of over 170% for the year. * Net income for the fourth quarter of 2020 decreased to $547.2 million as compared to $728.3 million in the prior quarter. Adjusted net income for the fourth quarter of 2020 decreased to $375.7 million as compared to $524.8 million for the third quarter of 2020. The quarter over quarter decreases were driven by the decline in gain on sale margin and increased expenses from higher loan origination volume. For the year ended December 31, 2020, net income totaled $2.0 billion and adjusted net income totaled $1.5 billion. * Total expenses for the fourth quarter 2020 increased $110.4 million, or 17% from the third quarter 2020, due to higher direct expenses on record loan originations, additional personnel and related expenses to support the growth in our business and higher marketing costs as we expanded our national brand campaign. During the fourth quarter of 2020, our team members grew by 15% to 9,892 compared to our 38% growth in loan originations, which demonstrates our ability to rapidly grow and improve efficiency. * Disciplined and purposeful investments in the Company's technology enabled an 8% decline in cost per loan for the full year 2020 as compared 2019. Our data driven marketing efforts and servicing expertise resulted in a customer acquisition cost decline of 28% year over year as well.

Other Highlights

* On February 11, 2021, the Company completed its initial public offering. Since loanDepot did not have any shares outstanding prior to this date, earnings per share information was not determinable. As of February 11, 2021, the Company had 6,068,834 of Class A shares outstanding, 179,431,851 of Class C shares outstanding and 120,642,007 of Class D shares outstanding. * During the fourth quarter of 2020, the Company donated $2.0 million on behalf of our employees to support individuals and families impacted by COVID-19 as well as to support several key charitable organizations. These donations bring the total amount donated in 2020 to support pandemic-relief and philanthropic efforts to $3.0 million. * In February of 2021, we entered into a multi-year partnership agreement with Major League Baseball wherein loanDepot was named "Official Mortgage Provider" of Major League Baseball. This partnership further expands our brand reach and reinforces our brand promise to millions of MLB fans nationwide. * We believe our position as the second most recognized mortgage brand grew even stronger through our ongoing national television ad campaign delivering over 7 billion household impressions from May through December 2020. Our extensive data analytics also allowed us to capitalize on the 1.6 million average monthly website visits and 330 million online media exposures during the fourth quarter of 2020.

Balance Sheet Highlights

% Change

Dec - Dec - 2020 ($ in December 31,September 30,December 31,vs vs. thousands) 2020 2020 2019 Sep - 20Dec - 19 (Unaudited)

Cash and cash $ 284,224 $ 637,511 $73,301 (55.4)%287.7%equivalents

Loans held for sale, at fair 6,955,424 4,888,364 3,681,840 42.3 88.9 value

Servicing rights, at fair1,127,866 780,451 447,478 44.5 152.0 value

Warehouse and other lines of 6,577,429 4,601,062 3,466,567 43.0 89.7 credit

Total 9,236,615 7,017,792 4,576,626 31.6 101.8 liabilities

Total equity 1,656,613 1,633,521 375,885 1.4 340.7

Record quarterly originations drove an increase in loans held for sale at December 31, 2020, which increased by 42% from the prior quarter to $7.0 billion. The balance on our warehouse lines of credit increased by 43% during the quarter due to the increased origination activity. Total funding capacity with our lending partners increased to $8.1 billion at December 31, 2020 from $5.5 billion at September 30, 2020. The increase of $2.6 billion was due to the addition of two new facilities with two and three year maturity dates as well as increases to existing facilities. Available borrowing capacity was $1.5 billion at December 31, 2020.

Unrestricted cash and cash equivalents was $284.2 million at December 31, 2020. The decrease in cash from September 30, 2020 was primarily due to earnings offset by tax distributions of $71.1 million as required under the Company's operating agreement and profit distributions of $453.8 million as allowed under the Company's operating agreement.

The fair value of mortgage servicing rights increased by 45%, or $347.4 million during the fourth quarter to a record $1.1 billion. This increase was driven by $411.3 million of new additions, partially offset by runoff of $80.0 million. During the fourth quarter of 2020, servicing retained loan sales increased as a result of the record level of loan originations.

Strategic Channel OverviewOur diverse origination strategy ensures we can serve customers in the way they want to be served, with the right mortgage professional, with the right product, at the right price, at the right time. Complementing our origination strategy is our servicing portfolio, which ensures we can serve the customer through their entire mortgage journey.

Retail Channel

Three Months Ended Year Ended

($ in thousands)December 31, September 30, December 31, December 31, December 31, (Unaudited) 2020 2020 2019 2020 2019

Volume data:

Rate locks $40,066,201 $40,903,946 $15,854,996 $132,448,124 $59,116,290

Loan 29,665,251 21,714,871 11,409,261 80,256,667 32,700,837 originations

Gain on sale 3.47 %5.07 %2.87 %4.41 %3.39 %margin

The Company employs more than 2,300 licensed mortgage loan professionals who work in our Retail Channel that reach customers through our organic marketing or their own relationships in either our proprietary call centers or local in-market branches. During the fourth quarter of 2020, our Retail Channel accounted for $29.7 billion, or 79%, of our loan originations. For the year ended December 31, 2020, our Retail Channel contributed $80.3 billion, or 80%, of loan originations.

Partner Channel

Three Months Ended Year Ended

($ in thousands)December 31, September 30,December 31, December 31, December 31, (Unaudited) 2020 2020 2019 2020 2019

Volume data:

Rate locks $9,645,069 $8,376,440 $4,492,567 $28,536,407 $16,146,169

Loan 7,730,101 5,442,799 4,646,711 20,503,484 12,623,189 originations

Gain on sale 2.58 %4.06 %1.19 %3.06 %1.16 %margin

Our Partner Channel originates loans through our network of approved mortgage brokers, as well as a series of exclusive joint ventures with some of the nation's largest homebuilders and depositories, who market our broad spectrum of products utilizing our innovate mello(r) technology platform to efficiently underwrite, process and fund mortgage loans, while delivering an exceptional customer experience. During the fourth quarter of 2020, our Partner Channel accounted for $7.7 billion, or 21%, of our loan originations. For the year ended December 31, 2020, our Partner Channel contributed $20.5 billion, or 20%, of our loan originations.

The returns were complemented by $3.7 million of income recorded from our joint ventures for the fourth quarter of 2020 and $10.4 million for the year ended December 31, 2020, reflecting the wide variety of industry partners we work with in the channel.

We entered into two new joint venture relationships with home builders during the second half of 2020 and added one new joint venture relationship in the first quarter of 2021 with a federally chartered savings bank offering banking and insurance services.

Servicing

% Change

Servicing Portfolio Data: Dec - 20Dec - 20 December 31, September 30, December 31, vs vs. ($ in 2020 2020 2019 Sep - 20Dec - 19thousands) (Unaudited)

Total servicing portfolio $102,931,258 $77,171,998 $36,336,126 33.4 %183.3% (unpaid principal balance)

Total servicing 342,600 272,701 148,750 25.6 130.3 portfolio (units)



60+ days delinquent $2,162,585 $2,073,862 $383,272 4.3 %464.2% ($)

60+ days delinquent 2.1 %2.7 %1.1 % (%)



Servicing $1,124,302 $776,993 $444,443 44.7 153.0 rights, net

The unpaid principal balance of our servicing portfolio increased $66.6 billion, or 183%, to $102.9 billion compared to $36.3 billion as of December 31, 2019. The fourth quarter of 2020 comprised $25.8 billion, or 39% of the total $66.6 billion increase throughout the year, driven by an increase in servicing-retained loan sales. We continued to invest in growing our high quality servicing portfolio and not only increased total loan originations but also the percentage of our servicing customers who chose to refinance with us. For the fourth quarter of 2020, our organic refinance consumer direct recapture rate was 66%, highlighting the efficacy of our marketing efforts and the strength of our customer relationships.

Servicing income increased $67.5 million, or 57% to $185.9 million for the year compared to $118.4 million for 2019, and increased $16.0 million, or 33% to $64.4 million for the fourth quarter of 2020 compared to $48.4 million for the third quarter of 2020.

As of December 31, 2020, approximately 2.4%, or $2.4 billion, of our servicing portfolio was in active forbearance. This represents a decline from 3.4%, or $2.6 billion, at the end of the third quarter of 2020.

GuidanceWe expect analyst research to be published and coverage of loanDepot, Inc. to begin in the near future and anticipate providing updated guidance on first quarter 2021 performance after those publications.

Consolidated Statements of Operations

($ in Three Months Ended Year Ended thousands)

December 31,September 30,December 31,2020 2019 2020 2020 2019

(Unaudited) (Unaudited)

REVENUES:

Interest income$44,730 $31,453 $41,076 $142,879 $127,569

Interest (42,562) (29,553) (40,794) (131,443) (130,344)expense

Net interest 2,168 1,900 282 11,436 (2,775) income



Gain on origination and1,172,704 1,279,431 337,798 4,046,159 1,125,853sale of loans, net

Origination 91,253 71,740 41,651 258,807 149,500 income, net

Servicing fee 64,375 48,406 33,396 185,895 118,418 income

Change in fair value of (68,389) (57,603) (19,495) (284,521) (119,546)servicing rights, net

Other income 36,283 25,056 21,660 94,398 65,681

Total net 1,298,394 1,368,930 415,292 4,312,174 1,337,131revenues



EXPENSES:

Personnel 508,638 441,818 239,308 1,531,371 765,256 expense

Marketing and advertising 90,709 60,435 54,081 264,337 187,880 expense

Direct origination 36,127 33,465 31,743 124,754 93,531 expense

General and administrative 51,146 52,372 32,786 171,712 100,493 expense

Occupancy 9,826 9,997 9,520 39,262 37,209 expense

Depreciation and 8,547 8,585 10,116 35,669 37,400 amortization

Subservicing 29,556 22,820 12,660 81,710 41,397 expense

Other interest 15,884 10,522 10,902 48,001 41,294 expense

Total expenses 750,433 640,014 401,116 2,296,816 1,304,460



Income before 547,961 728,916 14,176 2,015,358 32,671 income taxes

Income tax expense 791 567 (2,037) 2,248 (1,749) (benefit)

Net income 547,170 728,349 16,213 2,013,110 34,420



Net income attributable to547,170 728,349 16,213 2,013,110 34,420 noncontrolling interests

Net income attributable to$- $- $- $- $- loanDepot, Inc.

Consolidated Balance Sheets



($ in thousands) December 31, September 30,December 31, 2020 2020 2019

(Unaudited)

ASSETS

Cash and cash equivalents $284,224 $637,511 $73,301

Restricted cash 204,465 70,387 44,195

Accounts receivable, net 138,122 118,400 121,046

Loans held for sale, at fair value6,955,424 4,888,364 3,681,840

Derivative assets, at fair value 647,939 722,149 131,228

Servicing rights, at fair value 1,127,866 780,451 447,478

Property and equipment, net 85,002 76,250 80,897

Operating lease right-of-use asset66,433 56,449 61,693

Prepaid expenses and other assets 77,241 57,610 52,653

Loans eligible for repurchase 1,246,158 1,184,015 197,812

Investments in joint ventures 17,528 16,773 17,030

Goodwill and other intangible 42,826 42,954 43,338 assets, net

Total assets $10,893,228$8,651,313 $4,952,511



LIABILITIES AND EQUITY



LIABILITIES

Warehouse and other lines of $6,577,429 $4,601,062 $3,466,567credit

Accounts payable and accrued 442,928 375,957 196,102 expenses

Derivative liabilities, at fair 168,169 59,432 9,977 value

Liability for loans eligible for 1,246,158 1,184,015 197,812 repurchase

Operating lease liability 86,023 72,590 80,257

Financing lease obligations 3,442 18,258 33,816

Debt obligations, net 712,466 706,478 592,095

Total liabilities 9,236,615 7,017,792 4,576,626



EQUITY

Noncontrolling interest 1,656,613 1,633,521 375,885

Total liabilities and equity $10,893,228$8,651,313 $4,952,511

Loan Origination and Sales Data

Three Months Ended Year Ended ($ in thousands) December 31, September 30, December 31, December 31, December 31, (Unaudited) 2020 2020 2019 2020 2019

Loan origination volume by type:

Conventional$31,389,431 $22,034,957 $11,005,102 $79,960,680 $29,535,192 conforming

FHA/VA/USDA 5,013,338 4,532,290 3,934,082 17,584,601 11,599,805

Jumbo 591,739 209,167 784,008 1,821,700 3,154,982

Other 400,844 381,255 332,780 1,393,170 1,034,047

Total $37,395,352 $27,157,669 $16,055,972 $100,760,151 $45,324,026



Loan origination volume by channel:

Retail $29,665,251 $21,714,870 $11,409,261 $80,256,666 $32,700,837

Partnership 7,730,101 5,442,799 4,646,711 20,503,485 12,623,189

Total $37,395,352 $27,157,669 $16,055,972 $100,760,151 $45,324,026



Loan origination volume by purpose:

Purchase $9,813,921 $8,546,295 $5,298,068 $28,301,076 $18,513,555

Refinance 27,581,431 18,611,374 10,757,904 72,459,075 26,810,471

Total $37,395,352 $27,157,669 $16,055,972 $100,760,151 $45,324,026



Loans sold:

Servicing $33,989,511 $24,402,497 $7,967,753 $87,186,118 $20,360,739 retained

Servicing 1,394,979 1,195,252 7,382,863 10,353,541 23,134,883 released

Total $35,384,490 $25,597,749 $15,350,616 $97,539,659 $43,495,622



Loan origination margins:

Gain on sale3.38 %4.98 %2.36 %4.27 %2.81 %margin

Fourth Quarter Earnings CallManagement will host a conference call and live webcast today at 11:00 a.m. ET on loanDepot's Investor Relations website, investors.loandepot.com, following the release of its earnings results.

The conference call can also be accessed by dialing 833-312-1365 (domestic) or 236-712-2485 (international) using pin number 3784967. Please call five minutes in advance to ensure that you are connected prior to the call. A replay of the webcast and transcript will also be made available on the Investor Relations website following the conclusion of the event.

For more information about loanDepot, please visit the company's Investor Relations website: investors.loandepot.com.

Non-GAAP Financial MeasuresTo provide investors with information in addition to our results as determined by GAAP, we disclose Adjusted Total Revenue, Adjusted EBITDA, and Adjusted Net Income as non-GAAP measures. We believe Adjusted Total Revenue, Adjusted EBITDA, and Adjusted Net Income provide useful information to investors regarding our results of operations because each measure assists both investors and management in analyzing and benchmarking the performance and value of our business. They facilitate company-to-company operating performance comparisons by backing out potential differences caused by variations in hedging strategies, changes in valuations, capital structures (affecting net interest expense), taxation, the age and book depreciation of facilities (affecting relative depreciation expense) and the amortization of intangibles, which may vary for different companies for reasons unrelated to operating performance, as well as certain historical cost (benefit) items which may vary for different companies for reasons unrelated to operating performance. These measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for revenue, net income, or any other operating performance measure calculated in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies.

We define "Adjusted Total Revenue" as total revenues, net of the change in fair value of mortgage servicing rights ("MSRs") and the related hedging gains and losses. We define "Adjusted EBITDA" as earnings before interest expense and amortization of debt issuance costs on non-funding debt, income taxes, depreciation and amortization, change in fair value of MSRs, net of the related hedging gains and losses, change in fair value of contingent consideration, stock compensation expense and management fees, and IPO related expense. We define "Adjusted Net Income" as tax-effected earnings before stock compensation expense and management fees, IPO expense, and the change in fair value of MSRs, net of the related hedging gains and losses, and the tax effects of those adjustments. Adjustments for income taxes are made to reflect LD Holdings historical results of operations on the basis that it was taxed as a corporation under the Internal Revenue Code, and therefore subject to U.S. federal, state and local income taxes. We exclude from each of these non-GAAP measures the change in fair value of MSRs and related hedging gains and losses as this represents a non-cash non-realized adjustment to our total revenues, reflecting changes in assumptions including discount rates and prepayment speed assumptions, mostly due to changes in market interest rates, which is not indicative of our performance or results of operations. We also exclude stock compensation expense, which is a non-cash expense, management fees and IPO expenses as management does not consider these costs to be indicative of our performance or results of operations. Adjusted EBITDA includes interest expense on funding facilities, which are recorded as a component of "net interest income (expense)", as these expenses are a direct operating expense driven by loan origination volume. By contrast, interest and amortization expense on non-funding debt is a function of our capital structure and is therefore excluded from Adjusted EBITDA.

Adjusted Total Revenue, Adjusted EBITDA, and Adjusted Net Income have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Some of these limitations are:

* they do not reflect every cash expenditure, future requirements for capital expenditures or contractual commitments; * Adjusted EBITDA does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payment on our debt; * although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and Adjusted Total Revenue, Adjusted Net Income, and Adjusted EBITDA do not reflect any cash requirement for such replacements or improvements; and * they are not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows.

Because of these limitations, Adjusted Total Revenue, Adjusted EBITDA, and Adjusted Net Income are not intended as alternatives to total revenue, net income (loss), or net income attributable to the Company or as an indicator of our operating performance and should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations. We compensate for these limitations by using Adjusted Revenue, Adjusted Net Income, and Adjusted EBITDA along with other comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. See below for a reconciliation of these non-GAAP measures to their most comparable U.S. GAAP measures.

Reconciliation of Total Year Ended Revenue to Three Months Ended December 31, Adjusted Total Revenue ($ in thousands) December 31,September 30,December 31, 2020 2020 2019 2020 2019 (Unaudited)

Total net $1,298,394$ 1,368,930$415,292 $4,312,174$1,337,131revenue

Change in fair value of (16,355) 2,930 (13,678) 95,395 51,639 servicing rights^(1)

Net losses (gains) from derivatives 4,525 1,981 2,383 (14,490) (20,974) hedging servicing rights

Realized and unrealized (gains) losses from (33,857) (28,291) 3,200 (140,172) (21,618) derivative assets and liabilities^ (2)

Change in fair value of servicing (45,687) (23,380) (8,095) (59,267) 9,047 rights net of hedging gains and losses^(3)

Adjusted total$1,252,707$ 1,345,550$407,197 $4,252,907$1,346,178revenue

(1) Included in change in fair value of servicing rights, net in the Company'sconsolidated statements of operations.

(2) Included in gain on origination and sale of loans, net in the Company'sconsolidated statements of operations, as shown below:

Three Months Ended Year Ended December 31, ($ in thousands) December 31,September 30,December 31,2020 2019 (Unaudited) 2020 2020 2019

Unrealized (losses) gains from derivative$(198,710)$201,003 $ (37,622)$320,756$85,679 assets and liabilities

Less: Unrealized (losses) gains from derivative assets and(209,767) 195,383 (28,830) 288,325 95,578 liabilities-IRLC and LHFS

Unrealized gains (losses) from derivative assets and11,057 5,620 (8,792) 32,431 (9,899) liabilities-servicing rights



Realized (losses) gains from derivative(78,226) (162,191) 20,720 (450,254)(128,634)assets and liabilities

Less: Realized (losses) gains from derivative assets and(101,027) (184,862) 15,128 (557,995)(160,151)liabilities-IRLC and LHFS

Realized gains (losses) from derivative assets and22,801 22,671 5,592 107,741 31,517 liabilities-servicing rights



Realized and unrealized gains (losses) from $33,857 $28,291 $ (3,200) $140,172$21,618 derivative assets and liabilities - servicing rights

(3) Represents the change in the fair value of servicing rights attributable tochanges in assumptions, net of hedging gains and losses.

Reconciliation of Net Income Three Months Ended Year Ended to Adjusted December 31, Net Income ($ in thousands) December 31,September 30,December 31,2020 2019 2020 2020 2019 (Unaudited)

Net income $547,170 $728,349 $16,213 $2,013,110$34,420

Income tax expense 791 567 (2,037) 2,248 (1,749) (benefit)

Income before 547,961 728,916 14,176 2,015,358 32,671 taxes

Adjustments to income taxes^ 141,040 187,616 3,649 518,733 8,410 (1)

Tax-effected 406,921 541,300 10,527 1,496,625 24,261 net income

Change in fair value of servicing (45,687) (23,380) (8,095) (59,267) 9,047 rights, net of hedging gains and losses^(2)

Stock compensation expense and 1,099 1,186 215 9,565 1,219 management fees

IPO expenses 2,560 - - 2,560 -

Tax effect of adjustments^ 10,818 5,713 2,028 12,134 (2,642) (3)

Adjusted net $375,711 $524,819 $4,675 $1,461,617$31,885income

(1) loanDepot, Inc. is subject to federal, state and local income taxes.Adjustments to income tax (benefit) reflect the effective income tax ratesbelow:

Three Months Ended Year Ended December 31, December 31,September 30,December 31,2020 2019 2020 2020 2019

Statutory U.S. federal income tax rate 21.00 % 21.00 % 21.00 % 21.00%21.00%

State and local income taxes (net of federal benefit)4.74 % 4.74 % 4.74 % 4.74 %4.74 %

Effective income tax rate 25.74 % 25.74 % 25.74 % 25.74%25.74%

(2) Amounts represent the change in the fair value of servicing rightsattributable to changes in assumptions, net of hedging gains and losses.

(3) Amounts represent the income tax effect of (a) change in fair value ofservicing rights, net of hedging gains and losses, (b) stock compensationexpense and management fees, and (c) IPO expense at the aforementionedeffective income tax rates.

Reconciliation of Net Income Three Months Ended Year Ended to Adjusted December 31, EBITDA ($ in thousands) December 31,September 30,December 31,2020 2019 2020 2020 2019 (Unaudited)

Net income $547,170 $728,349 $16,213 $2,013,110$34,420

Interest expense - 15,884 10,522 10,902 48,001 41,294 non-funding debt ^(1)

Income tax expense 791 567 (2,037) 2,248 (1,749) (benefit)

Depreciation and 8,547 8,585 10,116 35,669 37,400 amortization

Change in fair value of servicing rights, net of(45,687) (23,380) (8,095) (59,267) 9,047 hedging gains and losses^(2)

Change in fair value - - 19,670 2,185 32,650 2,374 contingent consideration

Stock compensation expense and 1,099 1,186 215 9,565 1,219 management fees

IPO expense 2,560 - - 2,560 -

Adjusted $530,364 $745,499 $29,499 $2,084,536$124,005EBITDA

(1) Represents other interest expense, which includes amortization of debtissuance costs, in the Company's consolidated statement of operations.

(2) Represents the change in the fair value of servicing rights attributable tochanges in assumptions, net of hedging gains and losses.

Forward-Looking StatementsThis press release may contain "forward-looking statements," which reflect loanDepot's current views with respect to, among other things, its operations and financial performance. You can identify these statements by the use of words such as "outlook," "potential," "continue," "may," "seek," "approximately," "predict," "believe," "expect," "plan," "intend," "estimate" or "anticipate" and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as "will," "should," "would" and "could." These forward-looking statements are based on current available operating, financial, economic and other information, and are not guarantees of future performance and are subject to risks, uncertainties and assumptions, including the risks in the "Risk Factors" section of loanDepot, Inc.'s Registration Statement on Form S-1, dated February 9, 2021, which are difficult to predict. Therefore, current plans, anticipated actions, financial results, as well as the anticipated development of the industry, may differ materially from what is expressed or forecasted in any forward-looking statement. loanDepot does not undertake any obligation to publicly update or revise any forward-looking statement to reflect future events or circumstances, except as required by applicable law.

About loanDepotloanDepot is a contemporary financial services company dedicated to delivering a best-in-class experience to its mortgage purchase and refinance customers. Founded in 2010, loanDepot offers a diversified network of direct-to-consumer, in-market, and partner business channels, uniquely positioning it to serve a wide range of customers. Headquartered in Southern California, the Company has funded more than $300 billion since its founding and currently ranks as the second largest retail nonbank lender and one of the leading retail mortgage lenders in the United States. Committed to serving the communities in which its team members live and work, loanDepot has donated millions of dollars to support a variety of local, regional and national philanthropic efforts, most recently giving more than $2.5 million to help with COVID-related efforts for first responders, healthcare workers, individuals and families nationwide. The Company also is a founding sponsor of War Heroes on Water, which supports ongoing therapeutic healing services for combat-wounded veterans nationwide.

Investor Relations Contact:Abe GutierrezVice President, Investor Relations(949) 860-8215ir@loandepot.com

or

Nicole CarrilloExecutive Vice President, Chief Accounting Officer(949) 575-5187ir@loandepot.com

Media Contact:Lori WildrickVice President, Communications(949) 330-8791lwildrick@loandepot.com

LDI-IR

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SOURCE loanDepot, Inc.