loanDepot, Inc.

Previous wording

Our mortgage loan refinancing volumes (and to a lesser degree, our purchase volumes), balance sheets, and results of operations are influenced by changes in interest rates and how we effectively manage the related interest rate risk. The majority of our assets are subject to interest rate risk, including LHFS, LHFI, IRLCs, trading securities, servicing rights, forward sales contracts, interest rate swap futures and put options. We refer to such forward sales contracts, interest rate swap futures and put options collectively as “Hedging Instruments.” As interest rates increase, our LHFS, LHFI and IRLCs generally decrease in value while our Hedging Instruments utilized to hedge against interest rate risk typically increase in value. Rising interest rates cause our expected mortgage loan servicing revenues to increase due to a decline in mortgage loan prepayments which extends the average life of our servicing portfolio and increases the value of our servicing rights. Conversely, as interest rates decrease, our LHFS, LHFI and IRLCs generally increase in value while our Hedging Instruments decrease in value. In a declining interest rate environment, borrowers tend to refinance their mortgage loans, which increases prepayment speeds and causes expected mortgage loan servicing revenues to decrease, which reduces the average life of our servicing portfolio and decreases the value of our servicing rights. Changes in fair value of our servicing rights are recorded as unrealized gains and losses in change in fair value of servicing rights, net, in our consolidated statements of operations. Beginning in early 2022, long-term interest rates began a period of sustained increases. Although the Federal Reserve lowered interest rates by 100 basis points in late 2024, long-term interest rates, which fixed rate mortgages are linked with, have not materially decreased. In addition, continued uncertainty surrounding the impact of recent and potential governmental actions, such as tariffs, trade regulations, reductions of governmental employees and governmental spending, tax reform, and actions taken to address the debt ceiling, may cause long-term interest rates and mortgage rates to remain elevated, adversely impacting consumer sentiment and spending, which may lead to reduced demand for real estate, or have other negative impacts on the mortgage and real estate markets. The sustained increase in mortgage interest rates adversely impacted mortgage loan origination volumes, reducing demand for refinance mortgages and impacting affordability and qualification for homebuyers as well as due to alarge number of existing homeowners benefiting from low-interest rates, adversely impacting purchase transaction supply.

Current wording

Our mortgage loan refinancing volumes (and to a lesser degree, our purchase volumes), balance sheet, and results of operations are influenced by changes in interest rates and how we effectively manage the related interest rate risk. The majority of our assets are subject to interest rate risk, including LHFS, LHFI, IRLCs, trading securities, servicing rights, forward sales contracts, interest rate swap futures and put options. We refer to such forward sales contracts, interest rate swap futures and put options collectively as “Hedging Instruments.” As interest rates increase, our LHFS, LHFI and IRLCs generally decrease in value while our Hedging Instruments utilized to hedge against interest rate risk typically increase in value. Rising interest rates cause our expected mortgage loan servicing revenues to increase due to a decline in mortgage loan prepayments which extends the average life of our servicing portfolio and increases the value of our servicing rights. Conversely, as interest rates decrease, our LHFS, LHFI and IRLCs generally increase in value while our Hedging Instruments decrease in value. In a declining interest rate environment, borrowers tend to refinance their mortgage loans, which increases prepayment speeds and causes expected mortgage loan servicing revenues to decrease. This reduces the average life of our servicing portfolio and decreases the value of our servicing rights. Changes in fair value of our servicing rights are recorded as unrealized gains and losses in change in fair value of servicing rights, net, in our consolidated statements of operations. Beginning in early 2022, long-term interest rates began a period of sustained increases through late 2024 when the Federal Reserve first lowered interest rates by 100 basis points. In September 2025, rates were again reduced by 25 basis points, although long-term interest rates, which fixed rate mortgages are linked with, have not materially decreased. In addition, continued uncertainty surrounding the impact of recent and potential governmental actions, such as tariffs, trade regulations, reductions of governmental employees and governmental spending, government shutdown, tax reform, and actions taken to address the debt ceiling, may cause long-term interest rates and mortgage rates to remain elevated or slow to adjust to rate changes, adversely impacting consumer sentiment and spending, which may lead to reduced demand for real estate, or have other negative impacts on the mortgage and real estate markets. Sustained elevated mortgage interest rates adversely impacted mortgage loan origination volumes, reducing demand for refinance mortgages and impacting affordability and qualification for homebuyers as well as due to alarge number of existing homeowners benefiting from low-interest rates, adversely impacting purchase transaction supply.

Previous wording

Vision 2025, launched in July of 2022, was a critical factor in our successful navigation of unprecedented and challenging market conditions over the past three years. During the third quarter of 2024, we achieved profitability and successfully completed our Vision 2025 strategic plan. Our current strategy builds on the pillars of Vision 2025 by focusing on our goal of becoming the lifetime lending partner of choice for homeowners, growing our mortgage reach and capabilities, growing our servicing portfolio over the long-term, and investing in low touch, data-driven mortgage processing workflow to drive operating leverage. During 2025, we anticipate continued market challenges, but we believe that the implementation of these initiatives will allow us to capture responsible, profitable market share growth while we continue to capitalize on our ongoing investments in technology driven operational efficiencies to achieve sustainable profitability in a wide variety of operating environments.

Current wording

Vision 2025, launched in July of 2022, was a critical factor in our successful navigation of unprecedented and challenging market conditions. We successfully completed our Vision 2025 strategic plan in 2024. Our current strategy builds on the pillars of Vision 2025 by focusing on our goal of becoming the lifetime lending partner of choice for homeowners, growing our mortgage reach and capabilities, growing our servicing portfolio over the long-term, and investing in low touch, data-driven mortgage processing workflow to drive operating leverage. During 2025, despite continued market challenges, we believe that the implementation of these initiatives will allow us to capture responsible, profitable market share growth while we continue to capitalize on our ongoing investments in technology driven operational efficiencies to achieve sustainable profitability in a wide variety of operating environments.

Previous wording

The decrease in net loss of $40.6 million was primarily due to a $27.7 million decrease in total expenses, coupled with a $17.1 million increase in total net revenues. The increase in total revenues was primarily due to an increase in gain on origination and sale of loans, net and origination fee income from higher loan origination volume, higher gain on sale margins, and a lower net negative change in fair value of servicing rights, net, partially offset by a decrease in servicing fee income. The decrease in total expenses was driven by a decrease in general and administrative expense primarily as the result of expenses related to the Cybersecurity Incident in 2024 and a decrease in other interest expense, offset by an increase in personnel expense from higher volume-related commission costs.

Current wording

The $11.4 million variance from net income to net loss was primarily due to a $22.6 million increase in total expenses, offset by a $8.7 million increase in total net revenues. The increase in total expenses was driven by an increase in general and administrative expense primarily due to the $20.0 million insurance claim recovery related to the Cybersecurity Incident in the prior year. The increase in total revenues was primarily due to an increase in origination fee income and higher gain on sale margins and a decreased loss from change in fair value of servicing rights, net, partially offset by a decrease in servicing fee income.

Previous wording

Net Interest Income. Net interest income primarily represents income earned on LHFS offset by interest expenses on amounts borrowed under warehouse and other lines of credit to finance these loans until sold. Our LHFS are generally tied to longer-term interest rates while our warehouse lines of credit are tied to short-term interest rates. Therefore, our net interest income is impacted by the term structure of market interest rates. The increase in net interest income was due to a $456.6 million increase in the average balance of LHFS, and a decrease in cost of funds on warehouse lines as short-term interest rates declined, offset by lower yields on LHFS and $449.6 million increase in average balance of warehouse lines.

Current wording

Net Interest Income. Net interest income primarily represents income earned on LHFS offset by interest expenses on amounts borrowed under warehouse and other lines of credit to finance these loans until sold. Our LHFS are generally tied to longer-term interest rates while our warehouse lines of credit are tied to short-term interest rates. Therefore, our net interest income is impacted by the term structure of market interest rates. The increase in net interest income was due to a $126.9 million increase in the average balance of LHFS, and a decrease in cost of funds on warehouse lines as short-term interest rates declined, offset by lower yields on LHFS and $92.3 million increase in average balance of warehouse lines.

Previous wording

Origination Income, Net. Origination income, net, reflects the fees that we earn, net of lender credits we pay, from originating loans. Origination income includes loan origination fees, processing fees, underwriting fees, and other fees collected from the borrower at the time of funding. Lender credits typically include rebates or concessions to borrowers for certain loan origination costs. The $15.4 million, or 79.2%, increase in origination income, net, was the result of a 10.6% increase in loan origination volumes and an increase in fees charged on JV origination volumes.

Current wording

Origination Income, Net. Origination income, net, reflects the fees that we earn, net of lender credits we pay, from originating loans. Origination income includes loan origination fees, processing fees, underwriting fees, and other fees collected from the borrower at the time of funding. Lender credits typically include rebates or concessions to borrowers for certain loan origination costs. The $11.1 million, or 46.8%, increase in origination income, net, was the result of origination fees from higher loan originations in our consumer direct and retail channels and reduced JV originations driving higher origination fees and gain on sale margins.

Previous wording

Servicing Fee Income. Servicing fee income reflects contractual servicing fees and ancillary and other fees (including late charges) related to the servicing of mortgage loans. The decrease of $16.9 million or 13.5% reflects a decrease in servicing fee collections due to a decrease of $14.9 billion in the average UPB of our servicing portfolio as the result of bulk sales completed in the second quarter of 2024.

Current wording

Servicing Fee Income. Servicing fee income reflects contractual servicing fees and ancillary and other fees (including late charges) related to the servicing of mortgage loans. The decrease of $12.4 million or 9.9% reflects a decrease in servicing fee collections due to a decrease of $3.3 billion in the average UPB of our servicing portfolio as the result of bulk sales completed in the prior year.

Previous wording

Change in Fair Value of Servicing Rights, Net. Change in fair value of servicing rights, net includes (i) fair value gains or losses net of Hedging Instrument gains or losses; (ii) collection/realization of cash flows, which includes principal amortization and prepayments; and (iii) realized gains or losses on the sales of servicing rights. The increase of $8.4 million or 13.8% reflects an increased gain of $3.2 million in fair value, net of hedge and a $4.8 million decrease in the provision for losses related to bulk sales in the prior year.

Current wording

Change in Fair Value of Servicing Rights, Net. Change in fair value of servicing rights, net includes (i) fair value gains or losses net of Hedging Instrument gains or losses; (ii) collection/realization of cash flows, which includes principal amortization and prepayments; and (iii) realized gains or losses on the sales of servicing rights. The increase of $10.4 million or 18.3% reflects an increased gain of $13.1 million in fair value, net of hedge, offset by a $2.7 million increase in fallout and decay.

Previous wording

General and Administrative Expense. General and administrative expense includes professional fees, data processing expense, communications expense, and other operating expenses. The $33.4 million or 45.7% decrease in general and administrative expense included an $26.6 million decrease in costs related to the Cybersecurity Incident in the prior year and a $7.6 million decrease in legal fees which included a $5.0 million insurance recovery, partially offset by, a $2.0 million increase in loss contingency expense.

Current wording

General and Administrative Expense. General and administrative expense includes professional fees, data processing expense, communications expense, and other operating expenses. The $22.4 million or 97.3% increase in general and administrative expense is primarily due to a $20.0 million insurance claim receivable related to the Cybersecurity Incident recorded in the prior year.

Previous wording

Depreciation and amortization. The $4.4 million or 23.7% decrease in depreciation and amortization is primarily related to a $2.6M decrease in software development amortization, a $1.0 million reduction in computer equipment depreciation, and a $360k decrease in leasehold improvement amortization.

Current wording

Depreciation and Amortization. The $2.2 million or 24.7% decrease in depreciation and amortization is primarily related to a $1.6 million decrease in software development amortization and a $277 thousand decrease in leasehold improvement amortization.

Previous wording

The decrease of $71.4 million, or 52.0% in net loss was due to an $68.0 million increase in total net revenues, and a $15.9 million decrease in total expenses. The increase in total revenues was primarily due to an increase in gain on origination and sale of loans, net and origination fee income from higher loan origination volume, and higher gain on sale margin, offset by a decrease in servicing fee income due to a decrease in average servicing balance. The decrease in total expenses was driven by a decrease in general and administrative expense primarily as the result of expenses related to the Cybersecurity Incident in

Current wording

The decrease of $60.0 million, or 44.5% in net loss was due to an $76.7 million increase in total net revenues, partially offset by a $6.7 million increase in total expenses. The increase in total revenues was primarily due to an increase in gain on origination and sale of loans, net and origination fee income from higher loan origination volume and higher gain on sale margin, offset by a decrease in servicing fee income due to a decrease in average servicing portfolio balance. The increase in total expenses was driven by an increase in personnel expense and marketing and advertising expense, partially offset by a decrease in general and administrative expense and other interest expense.

Previous wording

Net Interest Income. The increase in net interest income was predominately driven by a $346.3 million increase in average balance of LHFS and lower cost of funds on warehouse lines as short-term interest rates were lower during the six months ended June 30, 2025, offset by an increase in loans financed on warehouse lines resulting in a $334.9 million increase in the average balance of warehouse lines and lower yield on LHFS.

Current wording

Net Interest Income. The increase in net interest income was driven by a $272.7 million increase in average balance of LHFS and lower cost of funds on warehouse lines as short-term interest rates were lower during the nine months ended

Previous wording

The $58.2 million or 20.6% increase in gain on origination and sale of loans, net was primarily driven by higher loan origination volumes and gain on sale margins, partially offset by a provision for loan loss obligation for loans sold due to higher sales volume compared to a recovery in the prior year due to an adjustment to our reserve as the result of lower frequency of repurchases and lower severities.

Current wording

The $61.5 million or 12.8% increase in gain on origination and sale of loans, net was primarily driven by higher loan origination volumes and gain on sale margins, partially offset by a provision for loan loss obligation for loans sold due to higher sales volume compared to a recovery for loan loss obligations in the prior year due to an adjustment to our reserve as the result of improved credit performance and reduced exposure as our peak production years met required payment histories.

Previous wording

Origination Income, Net. The $27.7 million or 83.7% increase in origination income, net, was primarily the result of an 11.8% increase in loan origination volumes and an increase in fees charged on JV origination volumes.

Current wording

Origination Income, Net. The $38.8 million or 68.3% increase in origination income, net, was primarily the result of an increase in consumer direct and retail volumes and a decrease in JV volumes driving higher origination fees and gain on sale margins.

Previous wording

Servicing Fee Income. The $36.7 million or 14.7% decrease was the result of a decrease in servicing fee collections due to a decrease of $20.5 billion average UPB of our servicing portfolio from bulk sales completed in the first half of 2024.

Current wording

Servicing Fee Income. The $49.0 million or 13.1% decrease was the result of a decrease in servicing fee collections and reduced ancillary income due to a decrease of $13.3 billion average UPB of our servicing portfolio from bulk sales completed in the prior year.

Previous wording

Change in Fair Value of Servicing Rights, Net. The increase of $12.6 million or 11.9% reflects an increased gain of $6.4 million in fair value, net of hedge, a $6.9 million decrease in provision and broker fees related to bulk sales in 2024, partially offset by a $0.7 million increase in fallout and decay.

Current wording

Change in Fair Value of Servicing Rights, Net. The increase of $22.9 million or 14.1% reflects an increased gain of $19.5 million in fair value, net of hedge and a $6.8 million decrease in provision and broker fees related to bulk sales in 2024, partially offset by a $3.4 million increase in fallout and decay.

Previous wording

Personnel Expense. The increase of $28.9 million or 10.5% is primarily due to a $16.1 million volume-related increase in commissions, a $17.8 million increase in salaries and benefits related to increased headcount, and a $1.7 million increase in severance offset by a $7.3 million reduction in equity compensation expense primarily due to forfeitures. As of June 30, 2025, we had 4,509 employees compared to 4,246 employees as of June 30, 2024.

Current wording

Personnel Expense. The increase of $28.7 million or 6.6% is primarily due to a $19.8 million volume-related increase in commissions, a $17.1 million increase in salaries and benefits, and a $3.7 million increase in severance offset by a $11.9 million reduction in equity compensation expense primarily due to forfeitures. As of September 30, 2025, we had 4,553 employees compared to 4,615 employees as of September 30, 2024.

Previous wording

Marketing and Advertising Expense. The increase of $16.6 million or 27.9% primarily reflects an increase in aggregate lead generation as part of our marketing strategy to cultivate online leads for increased purchase and cash-out refinance volume.

Current wording

Marketing and Advertising Expense. The increase of $18.0 million or 18.8% primarily reflects an increase in aggregate lead generation and direct mail marketing.

Previous wording

General and Administrative Expense. The $47.0 million or 35.9% decrease in general and administrative expense included a $35.0 million decrease in costs related to the Cybersecurity Incident in the prior year, a $10.3 million decrease in professional and consulting services primarily legal fees, and a $0.7 million decrease in loss contingency expense.

Current wording

General and Administrative Expense. The $24.7 million or 16.0% decrease in general and administrative expense included a $15.6 million decrease in costs related to the Cybersecurity Incident in the prior year, a $12.6 million decrease in professional and consulting services primarily legal fees, and a $4.0 million increase in loss contingency expense.

Previous wording

Depreciation and amortization. The $2.6 million or 28.8% decrease in depreciation and amortization is primarily related to a $1.8M decrease in software development amortization, a $269k decrease in leasehold improvement amortization, and a $373k reduction in computer equipment depreciation.

Current wording

Depreciation and amortization. The $6.6 million or 24.0% decrease in depreciation and amortization is primarily related to a $4.2 million decrease in software development amortization and a $1.2 million reduction in computer equipment depreciation.

Previous wording

Other Interest Expense. The $12.3 million or 12.3% decrease in other interest expense was the result of a $13.3 million decrease in MSR interest expense related to reduced draws as a result of bulk sales completed in 2024 and a $5.7 million loss on debt extinguishment related to the June 2024 debt exchange, partially offset by a $6.5 million increase primarily due to discount amortization related to the 2027 Senior Notes and 2024-SD1 securitization.

Current wording

Other Interest Expense. The $13.1 million or 9.1% decrease in other interest expense was the result of a $14.4 million decrease in MSR interest expense related to reduced draws as a result of bulk sales completed in 2024 and a $5.7 million loss on debt extinguishment in the prior period related to the June 2024 debt exchange, partially offset by a $6.8 million increase primarily due to discount amortization related to the 2027 Senior Notes and 2024-SD1 securitization.

Previous wording

Cash and Cash Equivalents. The $13.0 million or 3.1% decrease in cash and cash equivalents relates to net losses and repurchased loans, partially offset by an increase in debt obligations and a decrease in restricted cash.

Current wording

Cash and Cash Equivalents. The $37.6 million or 8.9% increase in cash and cash equivalents relates to an increase in debt obligations and a decrease in restricted cash, offset by net losses and repurchased loans.

Previous wording

Restricted Cash. Restricted cash was $69.5 million as of June 30, 2025 compared to $105.6 million as of December 31, 2024 representing a decrease of $36.2 million or 34.2%. The decrease was primarily the result of decreases in cash collateral associated with derivative activities and debt obligations, offset by an increase in cash collateral for warehouse lines.

Current wording

Restricted Cash. Restricted cash was $66.7 million as of September 30, 2025 compared to $105.6 million as of December 31, 2024 representing a decrease of $38.9 million or 36.9%. The decrease was primarily the result of decreases in cash collateral associated with derivative activities and debt obligations.

Previous wording

Derivative Assets, at Fair Value. The $25.5 million, or 57.3% increase reflects a $28.0 million increase in IRLCs from higher notional balances, offset by a $2.6 million decrease in Hedging Instruments.

Current wording

Derivative Assets, at Fair Value. The $10.2 million, or 23.0% increase reflects a $23.0 million increase in IRLCs from higher notional balances, offset by a $12.8 million decrease in Hedging Instruments.

Previous wording

Loans Eligible for Repurchase. Loans eligible for repurchase were $882.3 million as of June 30, 2025, as compared to $995.4 million as of December 31, 2024, representing a decrease of $113.1 million or 11.4%. The decrease between periods was driven by repurchased loans, partially offset by an increase in Ginnie Mae serviced loans that were 90 days or more delinquent at June 30, 2025.

Current wording

Loans Eligible for Repurchase. Loans eligible for repurchase were $916.9 million as of September 30, 2025, as compared to $995.4 million as of December 31, 2024, representing a decrease of $78.5 million or 7.9%. The decrease between periods was driven by repurchased loans, partially offset by an increase in Ginnie Mae serviced loans that were 90 days or more delinquent at September 30, 2025.

Previous wording

Equity. Total equity was $439.1 million and $506.6 million as of June 30, 2025 and December 31, 2024, respectively. The decrease was primarily attributed to a net loss of $66.0 million, the repurchase of treasury shares at cost of $2.2 million to net settle and withhold tax on vested RSUs, and distributions for taxes on behalf of shareholders of $2.6 million, partially offset by stock-based compensation of $3.5 million.

Current wording

Equity. Total equity was $433.3 million and $506.6 million as of September 30, 2025 and December 31, 2024, respectively. The decrease was primarily attributed to a net loss of $74.7 million, the repurchase of treasury shares at cost of $8.6 million to net settle and withhold tax on vested RSUs and exercised options, and distributions for taxes on behalf of shareholders of $2.6 million, partially offset by stock-based compensation of $7.1 million and increase of $5.7 million related to the issuance of common stock through the exercise of stock options.

Previous wording

Our liquidity reflects our ability to meet current potential cash requirements. We forecast the need to have adequate liquid funds available to operate and grow our business. As of June 30, 2025, unrestricted cash and cash equivalents were $408.6 million and committed and uncommitted available capacity under our warehouse and other lines of credit was $1.6 billion.

Current wording

Our liquidity reflects our ability to meet current potential cash requirements. We forecast the need to have adequate liquid funds available to operate and grow our business. As of September 30, 2025, unrestricted cash and cash equivalents were $459.2 million and committed and uncommitted available capacity under our warehouse and other lines of credit was $1.8 billion.

Previous wording

We primarily finance mortgage loans through borrowings under our warehouse and other lines of credit. Under these facilities, we transfer specific loans to our counterparties and receive funds from them. Simultaneously, there is an agreement in place where the counterparties commit to transferring the loans back to us, either at the date the loans are sold or upon our request, and we provide the funds in return. We do not recognize these transfers as sales for accounting purposes. During the three months ended June 30, 2025, our loans remained on warehouse lines for an average of 19 days. Our warehouse facilities are generally short-term borrowings with original maturities of one year and our securitization facility is a two year term. We utilize both committed and uncommitted loan funding facilities and we evaluate our needs under these facilities based on forecasted volume of loan originations and sales. Our liquidity could be affected as lenders may reassess their exposure to the mortgage origination industry and potentially limit access to uncommitted mortgage warehouse financing or increase associated costs. Moreover, there may be reduced demand from investors to acquire our mortgage loans in the secondary market, further impacting our liquidity. Approximately 62% of the mortgage loans that we originated during the six months ended June 30, 2025 were sold in the secondary mortgage market either directly to Fannie Mae and Freddie Mac or securitized into MBS guaranteed by Ginnie Mae. We also sell loans to many private investors.

Current wording

We primarily finance mortgage loans through borrowings under our warehouse and other lines of credit. Under these facilities, we transfer specific loans to our counterparties and receive funds from them. Simultaneously, there is an agreement in place where the counterparties commit to transferring the loans back to us, either at the date the loans are sold or upon our request, and we provide the funds in return. We do not recognize these transfers as sales for accounting purposes. During the three months ended September 30, 2025, our loans remained on warehouse lines for an average of 18 days. Our warehouse facilities are generally short-term borrowings with original maturities of one year and our securitization facility is a two year term. We utilize both committed and uncommitted loan funding facilities and we evaluate our needs under these facilities based on forecasted volume of loan originations and sales. Our liquidity could be affected as lenders may reassess their exposure to the mortgage origination industry and potentially limit access to uncommitted mortgage warehouse financing or increase associated costs. Moreover, there may be reduced demand from investors to acquire our mortgage loans in the secondary market, further impacting our liquidity. Approximately 62% of the mortgage loans that we originated during the nine months ended September 30, 2025 were sold in the secondary mortgage market either directly to Fannie Mae and Freddie Mac or securitized into MBS guaranteed by Ginnie Mae. We also sell loans to many private investors.

Previous wording

As of June 30, 2025, we maintained revolving lines of credit with ten counterparties providing warehouse and securitization facilities with borrowing capacity totaling $4.0 billion of which $1.3 billion was committed. Our $4.0 billion of capacity as of June 30, 2025 was comprised of $3.4 billion with staggered maturities within one year, a $300.0 million securitization facility that matures in September 2026, and a $300.0 million securitization facility that matures in April 2028. As of June 30, 2025, we had $2.4 billion of borrowings outstanding and $1.6 billion of additional availability under our facilities. Warehouse and other lines of credit are further discussed in Note 9- Warehouse and Other Lines of Credit of the Notes to Consolidated Financial Statements contained in Item 1.

Current wording

As of September 30, 2025, we maintained revolving lines of credit with eleven counterparties providing warehouse and securitization facilities with borrowing capacity totaling $4.2 billion of which $1.3 billion was committed. Our $4.2 billion of capacity as of September 30, 2025 was comprised of $3.9 billion with staggered maturities within one year and a $300.0 million securitization facility that matures in April 2028. As of September 30, 2025, we had $2.4 billion of borrowings outstanding and $1.8 billion of additional availability under our facilities. Warehouse and other lines of credit are further discussed in Note 9- Warehouse and Other Lines of Credit of the Notes to Consolidated Financial Statements contained in Item 1.

Previous wording

When we draw on our warehouse and securitization facilities we must pledge eligible loan collateral. Our warehouse line providers require us to make a capital investment, or “haircut” upon financing the loan, which is generally based on product types and the market value of the loans. The haircuts are normally recovered from sales proceeds. As of June 30, 2025, we had a total of $18.7 million in restricted cash posted as collateral with our warehouse and securitization facilities, of which $3.3 million was the minimum requirement.

Current wording

When we draw on our warehouse and securitization facilities we must pledge eligible loan collateral. Our warehouse line providers require us to make a capital investment, or “haircut” upon financing the loan, which is generally based on product types and the market value of the loans. The haircuts are normally recovered from sales proceeds. As of September 30, 2025, we had a total of $7.8 million in restricted cash posted as collateral with our warehouse and securitization facilities, of which $3.3 million was the minimum requirement.

Previous wording

MSR facilities and Term Notes provide financing for our servicing portfolio investments. As of June 30, 2025, MSR facilities secured by Fannie Mae and Freddie Mac MSRs had an outstanding balance of $611.2 million, secured by MSRs totaling $904.6 million. As of June 30, 2025, our Ginnie Mae MSR facility had an outstanding balance of $209.5 million in variable funding notes and $198.0 million in Term Notes, secured by Ginnie Mae MSRs totaling $638.2 million.

Current wording

MSR facilities and Term Notes provide financing for our servicing portfolio investments. As of September 30, 2025, MSR facilities secured by Fannie Mae and Freddie Mac MSRs had an outstanding balance of $610.9 million, secured by MSRs totaling $893.2 million. As of September 30, 2025, our Ginnie Mae MSR facility had an outstanding balance of $86.9 million in variable funding notes and $346.7 million in Term Notes, secured by Ginnie Mae MSRs totaling $647.1 million.

Previous wording

Securities financing facilities provide financing for the retained interest securities associated with our securitizations. As of June 30, 2025 there were outstanding securities financing facilities of $78.4 million, secured by trading securities with a fair value of $86.1 million.

Current wording

Securities financing facilities provide financing for the retained interest securities associated with our securitizations. As of September 30, 2025 there were outstanding securities financing facilities of $80.0 million, secured by trading securities with a fair value of $86.0 million.

Previous wording

Servicing advance facilities provide financing for our servicing agreements. As servicer, we are required to fulfill contractual obligations such as principal and interest payments for certain investor as well as taxes, insurance, foreclosure costs, and other necessities to preserve the serviced assets. For GSE-backed mortgages, this obligation extends up to four months, and for other government agency-backed mortgages, it may extend even longer, especially for clients under forbearance plans. The size of servicing advance balances is influenced by delinquency rates and prepayment speeds. As of June 30, 2025 the outstanding balance on our servicing advance facilities was $53.1 million secured by servicing advance receivables totaling $72.5 million.

Current wording

Servicing advance facilities provide financing for our servicing agreements. As servicer, we are required to fulfill contractual obligations such as principal and interest payments for certain investor as well as taxes, insurance, foreclosure costs, and other necessities to preserve the serviced assets. For GSE-backed mortgages, this obligation extends up to four months, and for other government agency-backed mortgages, it may extend even longer, especially for clients under forbearance plans. The size of servicing advance balances is influenced by delinquency rates and prepayment speeds. As of September 30, 2025 the outstanding balance on our servicing advance facilities was $53.5 million secured by servicing advance receivables totaling $71.7 million.

Previous wording

Other secured financings as of June 30, 2025 consisted of securitization debt of $92.4 million, net of $6.4 million in discount and $1.0 million in deferred financing costs and related to the securitization of a pool of residential mortgage loans held by a VIE. Consolidated VIEs are further discussed in Note 8 - Variable Interest Entities of the Notes to Consolidated Financial Statements contained in Item 1.

Current wording

Other secured financings as of September 30, 2025 consisted of securitization debt of $89.8 million, net of $5.7 million in discount and $0.9 million in deferred financing costs and related to the securitization of a pool of residential mortgage loans held by a VIE. Consolidated VIEs are further discussed in Note 8 - Variable Interest Entities of the Notes to Consolidated Financial Statements contained in Item 1.

Previous wording

Unsecured debt obligations as of June 30, 2025 consisted of Senior Notes totaling $819.2 million net of $7.6 million of deferred financing costs and a discount of $33.0 million. Periodically, and in accordance with applicable laws, and regulations, we may take actions to reduce or repurchase our debt. These actions can include redemptions, tender offers, cash purchases, prepayments, refinancing, exchange offers, open market or privately-negotiated transactions. The decision on amount of debt to be reduced or repurchased depends on several factors, including market conditions, trading levels of our debt, our cash positions, compliance with debt covenants, and other relevant considerations. During the second quarter of 2024, we repurchased $478.0 million of 2025 Senior Notes in exchange for $340.6 million of 2027 Senior Notes and cash of $185.0 million resulting in a loss on extinguishment of debt of $5.7 million. Debt obligations are further discussed in Note 10- Debt Obligations of the Notes to Consolidated Financial Statements contained in Item 1.

Current wording

Unsecured debt obligations as of September 30, 2025 consisted of Senior Notes totaling $823.0 million net of $6.9 million of deferred financing costs and a discount of $29.9 million. In November 2025, the remaining $19.8 million of 2025 Senior Notes was redeemed. Periodically, and in accordance with applicable laws, and regulations, we may take actions to reduce or repurchase our debt. These actions can include redemptions, tender offers, cash purchases, prepayments, refinancing, exchange offers, open market or privately-negotiated transactions. The decision on amount of debt to be reduced or repurchased depends on several factors, including market conditions, trading levels of our debt, our cash positions, compliance with debt covenants, and other relevant considerations. Debt obligations are further discussed in Note 10- Debt Obligations of the Notes to Consolidated Financial Statements contained in Item 1.

Previous wording

To provide investors with information in addition to our results as determined by GAAP, we disclose certain non-GAAP measures to assist investors in evaluating our financial results. We believe these non-GAAP measures 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 interest expense on non-funding debt), taxation, the age and book depreciation of facilities (affecting relative depreciation expense), and other cost or benefit items which may vary for different companies for reasons unrelated to operating performance. These non-GAAP measures include our Adjusted Total Revenue, Adjusted Net Income (Loss), Adjusted Diluted Weighted Average Shares Outstanding, and Adjusted EBITDA (LBITDA). We exclude from these non-GAAP financial measures the change in fair value of MSRs, gains (losses) from the sale of MSRs, and related hedging gains and losses that represent realized and unrealized adjustments resulting from changes in valuation, mostly due to changes in market interest rates, and are not indicative of the Company’s operating performance or results of operation. We have excluded expenses directly related to the cybersecurity incident in January 2024 that resulted from unauthorized access to our systems (the “Cybersecurity Incident”), net of insurance recoveries during fiscal 2024, such as costs to investigate and remediate the Cybersecurity Incident, the costs of customer notifications and identity protection, and professional fees, including legal expenses, litigation settlement costs, and commission guarantees. We also exclude stock-based compensation expense, which is a non-cash expense, gains or losses on extinguishment of debt and disposal of fixed assets, and impairment charges to operating lease right-of-use assets, as well as certain costs associated with our restructuring efforts, as management does not consider these costs to be indicative of our performance or results of operations. Adjusted EBITDA (LBITDA) 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 expense on our non-funding debt is a function of our capital structure and is therefore excluded from Adjusted EBITDA (LBITDA). Adjustments for income taxes are made to reflect 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. Adjustments to Diluted Weighted Average Shares Outstanding assumes the pro forma conversion of weighted…

Excerpt shortened here; the source contains the full paragraph.

Current wording

To provide investors with information in addition to our results as determined by GAAP, we disclose certain non-GAAP measures to assist investors in evaluating our financial results. We believe these non-GAAP measures 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 interest expense on non-funding debt), taxation, the age and book depreciation of facilities (affecting relative depreciation expense), and other cost or benefit items which may vary for different companies for reasons unrelated to operating performance. These non-GAAP measures include our Adjusted Total Revenue, Adjusted Net Income (Loss), Adjusted Diluted Weighted Average Shares Outstanding, and Adjusted EBITDA. We exclude from these non-GAAP financial measures the change in fair value of MSRs, gains (losses) from the sale of MSRs, and related hedging gains and losses that represent realized and unrealized adjustments resulting from changes in valuation, mostly due to changes in market interest rates, and are not indicative of the Company’s operating performance or results of operation. We have excluded expenses directly related to the Cybersecurity Incident, net of insurance recoveries during fiscal 2024, such as costs to investigate and remediate the Cybersecurity Incident, the costs of customer notifications and identity protection, and professional fees, including legal expenses, litigation settlement costs, and commission guarantees. We also exclude stock-based compensation expense, which is a non-cash expense, gains or losses on extinguishment of debt and disposal of fixed assets, and impairment charges to operating lease right-of-use assets, as well as certain costs associated with our restructuring efforts, 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 expense on our non-funding debt is a function of our capital structure and is therefore excluded from Adjusted EBITDA. Adjustments for income taxes are made to reflect 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. Adjustments to Diluted Weighted Average Shares Outstanding assumes the pro forma conversion of weighted average Class C common stock to Class A common stock. These non-GAAP measures have limitations as analytical tools and should n…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

•Adjusted EBITDA (LBITDA) does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payment on our debt;

Current wording

•Adjusted EBITDA does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payment on our debt;

Previous wording

•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 (Loss), and Adjusted EBITDA (LBITDA) do not reflect any cash requirement for such replacements or improvements; and

Current wording

•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 (Loss), and Adjusted EBITDA do not reflect any cash requirement for such replacements or improvements; and

Previous wording

Because of these limitations, Adjusted Total Revenue, Adjusted Net Income (Loss), Adjusted Diluted Weighted Average Shares Outstanding, and Adjusted EBITDA (LBITDA) are not intended as alternatives to total revenue, net income (loss), net income (loss) attributable to the Company, or Diluted Earnings (Loss) Per Share 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 Total Revenue, Adjusted Net Income (Loss), Adjusted Diluted Weighted Average Shares Outstanding, and Adjusted EBITDA (LBITDA) 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.

Current wording

Because of these limitations, Adjusted Total Revenue, Adjusted Net Income (Loss), Adjusted Diluted Weighted Average Shares Outstanding, and Adjusted EBITDA are not intended as alternatives to total revenue, net income (loss), net income (loss) attributable to the Company, or Diluted Earnings (Loss) Per Share 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 Total Revenue, Adjusted Net Income (Loss), Adjusted Diluted Weighted Average Shares Outstanding, 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.

Previous wording

(1)Reflects net loss to Class A common stock and Class D common stock from the pro forma exchange of Class C common stock.

Current wording

(1)Reflects net (loss) income to Class A common stock and Class D common stock from the pro forma exchange of Class C common stock.

Previous wording

(2)loanDepot, Inc. is subject to federal, state and local income taxes. Adjustments to thebenefit for income taxes reflect the income tax rates below, and the pro forma assumption that loanDepot, Inc. owns 100% of LD Holdings.

Current wording

(2)loanDepot, Inc. is subject to federal, state and local income taxes. Adjustments to thebenefit (provision) for income taxes reflect the income tax rates below, and the pro forma assumption that loanDepot, Inc. owns 100% of LD Holdings.