The provider of lending and real estate services saw its loan origination volume increase 23% compared to the prior quarter and reach $8.04 billion, the highest level it’s reached since 2022, loanDepot said in a Tuesday (March 10) earnings release.
Its market share increased 19% quarter over quarter, hitting 1.4%, according to the release.
“The fourth quarter reflected the emerging benefits of our investment in technology and operating efficiency during a period of higher volumes,” loanDepot Chief Financial Officer David Hayes said during a Tuesday earnings call.
Some of the latest innovations added by the company are artificial intelligence capabilities that streamline lead acquisition and conversion, loan officer Community Reinvestment Act (CRA) management, underwriting processes and other functions that are repeatable and scalable, loanDepot CEO and President Anthony Hsieh said during the call.
“As digital migration continues to gain momentum, the companies capable of deploying AI applications directly to consumers will define the productivity and efficiency standards for our industry,” Hsieh said. “We plan to continue investing and growing our top-of-the-funnel customer acquisition and origination capabilities, leveraging our brand and marketing muscle, along with introducing contemporary technologies, including AI, which should lower our costs and increase our operating efficiency.”
Surveying current market conditions in the mortgage industry, loanDepot has seen that decreasing long-term interest rates has incentivized refinance activity of higher-rate mortgages, and homeowner equity levels have driven demand for cash-out refinance and home equity products, according to an investor presentation released Tuesday.
At the same time, a limited supply of homes has continued to slow homebuying activity, and ongoing market volatility and uncertainty has affected housing demand and mortgage interest rates, the presentation said.
Looking ahead, loanDepot expects to end the current quarter with origination volume of between $6.75 billion and $7.75 billion, per the presentation.
“Our guidance reflects market volatility, seasonality in the purchase volume, the affordability and availability of new and resale homes and the level of mortgage interest rates, and our strategy of targeting larger average refinance loan balances,” Hayes said.
