Speaking during the company’s first quarter earnings call, Hsieh said these initiatives helped the company gain market share at a time when the market environment has been volatile. LoanDepot increased its market share from 1.3% a year ago to 1.4% in the first quarter, according to an investor presentation released Tuesday.
“Since my return as CEO, I have been laser-focused on our digital transformation as a key enabler of our return to a market-leading position,” Hsieh said. “We have focused on fully leveraging our unique assets and strategy, including one of the most differentiated customer acquisition and retention business models in the marketplace today.”
Hsieh said that behind the scenes, loanDepot has been employing automation to reduce costs. According to a Tuesday earnings release, the company’s productivity initiatives reduced its expenses by 0.2% from the prior quarter.
LoanDepot has also seen the digital migration of the customer continue to accelerate, and it is working to “be there to meet the customer,” Hsieh said.
The company’s digital team has been introducing technology and AI capabilities to handle repeatable and scalable functions across the origination and servicing life cycles, Hsieh said.
During the first quarter, loanDepot added more than 100 new loan officers, reimagined and relaunched its wholesale business, and completed a “game-changing” partnership with Figure Technology Solutions, Hsieh said, adding that these initiatives are delivering promising early results.
Loan Depot announced its launch of a new wholesale lending channel to expand its market presence in a March 9 press release. Through this channel, the company aims to offer competitive pricing to mortgage brokers.
“Response from the broker community has been very positive, with many directly reaching out, seeking to partner with loanDepot,” Hsieh said during the call.
LoanDepot announced its partnership with Figure on April 8, saying in a press release that Figure uses blockchain technology to transform financial services and that loanDepot’s integration of Figure’s credit and loan underwriting engine will accelerate its approval of home loan products.
“As we integrate this platform across our channels, we expect to lower our cost of production, improve the customer experience, close more loans quickly, and advance our long-term objective of profitable market share growth,” Hsieh said during the call.