“Our second quarter results reflect the extremely challenging market environment that continues in our industry, which led to ongoing declines in our mortgage volumes and profit margins,” Martell said.
The company noted that the loss was partially offset by higher servicing revenues and decreased expenses. Servicing portfolio rose to $155.2 billion in Q2, following the expansion of loanDepot’s in-house servicing from 67% to 88% of UPB. Its expenses decreased by $45.6 million, or 8%, on pace to achieve targeted annualized expense savings of $375 million to $400 million during the second half of 2022.
“During the quarter, we took aggressive actions that are part of our recently announced Vision 2025 plan, designed to address current and anticipated market conditions, achieve run-rate profitability exiting 2022 and position the company for long-term value creation,” Martell said. “This plan was launched on the foundation of a strong balance sheet and ample liquidity.
“We have already made significant progress by consolidating management spans to create operating efficiencies and reducing headcount from approximately 11,300 at year-end 2021 to approximately 8,500 at the end of June 2022, to approximately 7,400 at the beginning of August 2022. We are accelerating our execution of the plan and expect to end the third quarter of 2022 with headcount below our previously stated year-end goal of 6,500.”