Despite continuing challenge in the housing market, Martell suggested being buoyed by positive trends: “Looking ahead, although the affordability and availability of new and existing homes remains challenging for the industry overall, at loanDepot, we expect to continue to benefit from seasonally higher revenues, as well as our ongoing cost reduction and productivity programs,” he told shareholders.
“Together, these positive trends should continue to drive improving financial results over the course of the second quarter and the third quarter of 2023. Our focus on lowering costs and driving operating leverage should allow us to continue to remain in strong liquidity position.”
Then there’s the size of its cash balance: “By maintaining a sizable cash balance, $798 million as of March 31st, 2023, we believe we are positioned to continue to invest in our people, our platforms, and processes and benefit from the expected reductions in industry capacity,” Martell said.
Focus on first-time homebuyers is part of the Vision
The company plans on focusing on first-time homebuyers as it seeks to stem further loss: “While we continue to reset our cost structure, we are also focused on the other pillars of Vision 2025, including capturing profitable revenue growth opportunities,” Martell said.
“A significant component of Vision 2025 is reorienting our mortgage origination footprint around purpose-driven lending to support first-time homebuyers and diverse communities. We have already garnered recognition in this area,” he added, citing The Wall Street Journal’s naming the company as best mortgage lender for first-time homebuyers.
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