loanDepot, Inc.
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 6, 2026
LDI$0.64+2.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001831631-26-000061
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001831631-26-000086
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 106 previous paragraphs and 124 current paragraphs.
71 unchanged; 34 reworded; 16 added; 1 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 10 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
General and Administrative Expense. General and administrative expense includes professional fees, data processing expense, communications expense, and other operating expenses. The $7.8 million or 19.6% increase in general and administrative expense included a $4.4 million increase in legal expense due to an insurance recovery in the second quarter of the prior year, a $2.2 million increase in office and equipment expenses primarily related to software subscriptions, a $1.6 million loss on disposal of fixed assets, and a $1.3 million increase related to other general expenses, offset by a $2.5 million decrease in consulting services.
Current report
Other Interest Expense. The $2.1 million or 4.9% decrease in other interest expense was the result of the $1.2 million gain on debt extinguishment related to the repurchase of senior notes and a $1.0 million decrease in MSR interest expense.
Current report
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Current report
The decrease in net loss of $4.4 million was due to a $67.6 million increase in total net revenues, partially offset by a $50.8 million increase in total expenses and a $12.3 million decrease in income tax benefit primarily attributable to changes in the valuation allowance related to losses generating net operating loss carryforwards. 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, an increase in servicing fee income due to an increase in average servicing portfolio balance and a decrease in loss from the change in fair value of servicing rights, net, offset by lower gain on sale margins. The increase in total expenses was driven by an increase in personnel expense driven by an increase in headcount and an increase in commission expense in line with the increase in funded volume, direct origination expense, and general and administrative expense, partially offset by a decrease in marketing and advertising and other interest expense.
Current report
Revenues
Current report
Origination Income, Net. The $24.1 million or 39.6% increase in origination income, net, was the result of origination fees from a 31.4% increase in loan originations and contributions from increased HELOC volumes associated with the launch of our 5x5 HomeLoan product during the three months ended June 30, 2026.
Current report
Servicing Fee Income. The increase of $8.2 million or 3.9% reflects an increase in servicing fee collections due to a 3.7% increase in our servicing portfolio.
Current report
Change in Fair Value of Servicing Rights, Net. The increase of $9.6 million or 10.2% reflects an increased gain of $31.1 million in fair value, net of hedge related to improved market pricing from higher mortgage interest rates, decreased investor yield requirements and strong investor demand for lower coupon servicing, partially offset by a $22.0 million increase in fallout.
Current report
Expenses
Current report
Personnel Expense. The increase of $51.8 million or 17.0% is primarily due to a $31.5 million volume-related increase in commissions, a $14.2 million increase in salaries and benefits due to an increase in headcount, and an $8.2 million increase in stock-based compensation related to forfeitures in the prior year. As of June 30, 2026, we had 4,626 employees compared to 4,509 employees as of June 30, 2025.
Current report
Marketing and Advertising Expense. The decrease of $20.4 million or 26.8% primarily reflects a $9.3 million decrease in lead generation, an $8.4 million decrease related to brand marketing expense and a $2.8 million decrease in direct mail spend.
Current report
Direct Origination Expense. The $10.5 million or 24.8% increase in direct origination expense was the result of an increase in loan originations including costs associated with the volume of our 5x5 HomeLoan product.
Current report
General and Administrative Expense. The $10.5 million or 12.6% increase in general and administrative expense included a $3.6 million increase in office and equipment expenses primarily related to software subscriptions, a $1.5 million loss on disposal of fixed assets, a $1.2 million increase in legal expense due to an insurance recovery in the prior year, a $1.2 million increase in loss contingency, and a $1.0 million increase in compliance fees.
Current report
Other Interest Expense. The $2.3 million or 2.7% decrease in other interest expense was primarily the result of a $1.2 million gain on debt extinguishment related to the repurchase of senior notes and a $1.2 million decrease in MSR and securities financing interest expense.
Current report
In July 2026, we took advantage of market conditions and entered into an agreement to sell $9.7 billion of our servicing portfolio, which is expected to settle in the third quarter 2026.
Current report
We continue to evaluate opportunities to optimize our capital structure. As of July 30, 2026, $329.3 million of the 2027 Senior Notes, which mature in November 2027, and $468.1 million of the 2028 Senior Notes, which mature in April 2028, were outstanding. Addressing our Senior Notes maturities remains a high priority for management, and we are evaluating a range of options with the help of retained advisors. Any refinancing, even if available on then-prevailing market terms, may require higher interest rates, more restrictive covenants, additional collateral, reduced principal amounts, debt repurchases, asset sales, equity issuances or other transactions or terms that could increase our debt service obligations, reduce our liquidity, dilute existing stockholders or further restrict our operational and financial flexibility. If we are unable to refinance the Senior Notes on commercially reasonable terms or at all, we may be required to use available cash, including cash needed for operations and other obligations, to repay the Senior Notes at maturity, which would reduce our liquidity and could require us to sell assets, including mortgage servicing rights, possibly at valuations or on terms that are less favorable than we could obtain under more favorable conditions.
Removed paragraphs (1)
Previous report
Accounts Payable, Accrued Expenses and Other Liabilities. The increase of $25.0 million, or 7.2%, is primarily due to a $20.7 million increase in margin call payables, a $2.0 million increase in TRA liability, and a $1.9 million increase in accounts payable and other accrued liabilities.
Reworded paragraphs (34)
Previous wording
During the first quarter of 2026, mortgage rates remained elevated partly due to geopolitical tensions stemming from the conflict in Iran and higher energy prices driving inflation concerns. The rate environment continued to negatively affect housing affordability and loan qualification of homebuyers, contributed to the “lock-in” effect of borrowers that secured lower long-term interest rates during 2020 and 2021 giving rise to a lack of supply of homes available for sale, and decreased demand for refinancing, taken together resulting in lower demand for mortgage loans.
Current wording
During the first half of 2026, mortgage rates remained elevated and, according to FHLMC Primary Mortgage Market Survey, reached a one-year high of 6.66% at the end of July 2026, partly due to geopolitical tensions stemming from the conflict in Iran and higher energy prices driving inflation concerns. The rate environment continued to negatively affect housing affordability and loan qualification of homebuyers, contributed to the “lock-in” effect of borrowers that secured lower long- term interest rates during 2020 and 2021 giving rise to a lack of supply of homes available for sale, and decreased demand for refinancing, taken together resulting in lower demand for mortgage loans.
Previous wording
In April 2026 we announced our partnership with Figure Technology Solutions (“Figure”) as part of our strategy to meaningfully accelerate our digital transformation and as a component of our planned return to a market leading position. As part of the partnership, we integrated Figure’s proprietary credit and loan underwriting engine into our own proprietary mello® technology platform and point of sale system, enabling us to seamlessly offer a variety of innovative express path home loan products to our customers. Our 5x5 HomeLoan powered by Figure, which delivers approval in as little as five minutes and funding in as few as five days, brings real value to those seeking smart, seamless, and convenient solutions to their financing needs. As we integrate this platform across our channels, we expect to lower our cost of production, improve the customer experience, close more loans more quickly and advance our long-term objective of profitable market share growth.
Current wording
In April 2026 we announced our partnership with Figure Technology Solutions (“Figure”) as part of our strategy to meaningfully accelerate our digital transformation and as a component of our planned return to a market leading position. As part of the partnership, we integrated Figure’s proprietary credit and loan underwriting engine into our own proprietary mello® technology platform and point of sale system, enabling us to seamlessly offer a variety of innovative express path home loan products to our customers. Our 5x5 HomeLoan powered by Figure, which delivers approval in as little as five minutes and funding in as few as five days, brings real value to those seeking smart, seamless, and convenient solutions to their financing needs. Integrating this platform across our channels, helped to lower our cost of production, improve the customer experience, close more loans more quickly and contributed to a 26% increase in total unit volume compared to the second quarter of 2025.
Previous wording
The increase in net loss of $14.2 million was primarily due to a $21.8 million increase in total expenses, offset by a $12.8 million increase in total net revenues. The increase in total expenses was primarily due an increase in personnel expense driven by an increase in headcount and an increase in commission expense consistent with the increase in funded volume. The increase in total revenues was primarily due to higher pull-through weighted lock volume, offset somewhat by lower pull-through weighted gain on sale margins, and an increase in servicing fee income, partially offset by an increased loss from change in fair value of servicing rights, net.
Current wording
The decrease in net loss of $18.7 million was primarily due to a $54.8 million increase in total net revenues, partially offset by a $29.1 million increase in total expenses. The increase in total revenues was primarily due to a decrease in loss from change in fair value of servicing rights, net, an increase in origination income, net, and an increase in servicing fee income. The increase in total expenses was primarily due an increase in personnel expense driven by an increase in headcount and an increase in commission expense in line with the increase in funded volume.
Previous wording
Net Interest Income. Net interest income includes interest income earned on LHFS offset by interest expense incurred on amounts borrowed under warehouse lines for loan financing as well as warehouse line commitment fees. These commitment fees are amortized on a straight-line basis over the duration of the warehouse line agreement. The decrease in net interest income was due to an increase in loans financed on warehouse lines during the three months ended March 31, 2026 compared to the prior year, partially offset by improved net interest margin as the cost of funds decreased more than the yield on LHFS.
Current wording
Net Interest Income. Net interest income includes interest income earned on LHFS offset by interest expense incurred on amounts borrowed under warehouse lines for loan financing as well as warehouse line commitment fees. These commitment fees are amortized on a straight-line basis over the duration of the warehouse line agreement. The increase in net interest income reflects increased HELOC volumes at higher yields and a reduction in warehouse cost of funds driving improved net interest margins.
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 $6.8 million, or 26.2%, increase in origination income, net, was the result of origination fees from higher loan originations in our consumer direct and retail channels offset by reduced JV and HELOC 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 $17.3 million or 49.5% increase in origination income, net, was the result of HELOC volumes increasing 237% from the launch of our 5x5 HomeLoan product during the three months ended June 30, 2026.
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 increase of $4.5 million or 4.3% reflects an increase in servicing fee collections due to a 3.1% increase in our servicing portfolio.
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 increase of $3.8 million or 3.5% reflects an increase in servicing fee collections due to a 4.3% increase in our servicing portfolio.
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 decrease of $23.3 million or 56.6% reflects a $15.3 million increase in fallout and decay and an increased loss of $8.0 million in fair value, net of hedge.
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 $32.8 million or 62.7% reflects a $39.1 million increase in fair value, net of hedge related to improved market pricing from higher mortgage interest rates, decreased investor yield requirements and strong investor demand for lower coupon servicing, offset by a $6.7 million increase in fallout.
Previous wording
Personnel Expense. Personnel expense includes salaries, commissions, incentive compensation, benefits, and other employee costs. The increase of $25.2 million or 16.8% is primarily due to an $18.7 million volume-related increase in commissions and a $6.5 million increase in salaries and benefits due to an increase in headcount. As of March 31, 2026, we had 4,695 employees compared to 4,547 employees as of March 31, 2025.
Current wording
Personnel Expense. Personnel expense includes salaries, commissions, incentive compensation, benefits, and other employee costs. The increase of $26.6 million or 17.3% is primarily due to a $12.8 million volume-related increase in commissions, a $7.8 million increase in salaries and benefits due to an increase in headcount and a $7.5 million increase in stock-based compensation related to forfeitures in the prior year. As of June 30, 2026, we had 4,626 employees compared to 4,509 employees as of June 30, 2025.
Previous wording
Marketing and Advertising Expense. The decrease of $9.2 million or 24.2% primarily reflects a $4.1 million decrease related to brand marketing expense in the prior quarter, and a $4.5 million decrease in lead generation and direct mail spend.
Current wording
Marketing and Advertising Expense. The decrease of $11.2 million or 29.5% primarily reflects a $5.9 million decrease in lead generation, a $4.1 million decrease related to brand marketing expense and a $1.7 million decrease in direct mail spend.
Previous wording
Direct Origination Expense. Direct origination expense reflects the unreimbursed portion of direct out-of-pocket expenses that we incur in the loan origination process, including underwriting, appraisal, credit report, loan document and other expenses paid to non-affiliates. The $5.9 million or 30.9% increase in direct origination expense was the result of an increase in loan originations and an industry-wide increase in pricing for credit reporting fees.
Current wording
Direct Origination Expense. Direct origination expense reflects the unreimbursed portion of direct out-of-pocket expenses that we incur in the loan origination process, including underwriting, appraisal, credit report, loan document and other expenses paid to non-affiliates. The $7.4 million or 36.1% increase in direct origination expense was the result of an increase in loan origination cost related to the volume of our 5x5 HomeLoan product.
Previous wording
The $25.6 million or 15.4% increase in gain on origination and sale of loans, net was primarily driven by a 52.7% increase in pull-through weighted interest rate lock volumes, offset by a decrease in pull-through weighted gain on sale margin of 84 basis points.
Current wording
The $27.6 million or 8.1% increase in gain on origination and sale of loans, net was primarily driven by a 26.7% increase in pull-through weighted interest rate lock volumes, partially offset by a decrease in pull-through weighted gain on sale margin of 38 basis points.
Previous wording
Cash and Cash Equivalents. The $59.8 million or 17.7% decrease in cash and cash equivalents relates to increases in restricted cash, haircuts on warehouse lines, retained servicing rights, and net losses, offset by an increase in debt obligations.
Current wording
Cash and Cash Equivalents. The $108.1 million or 32.1% decrease in cash and cash equivalents relates to repurchases of Senior Notes, increases in cash collateral requirements associated with the Company's warehouse lending facilities which resulted in a corresponding increase in restricted cash, increases in retained servicing rights, and additional net losses, partially offset by an increase in debt obligations.
Previous wording
Restricted Cash. Restricted cash was $79.8 million as of March 31, 2026 compared to $63.8 million as of December 31, 2025 representing an increase of $16.0 million or 25.1%. The increase was primarily the result of increases in cash collateral associated with derivative activities and debt obligations.
Current wording
Restricted Cash. Restricted cash was $70.7 million as of June 30, 2026 compared to $63.8 million as of December 31, 2025 representing an increase of $6.9 million or 10.9%. The increase was primarily the result of increases in prepaid lending commitments and increases in cash collateral associated with warehouse lines and debt obligations, offset by decreases in cash collateral for hedge positions.
Previous wording
Loans Held for Sale, at Fair Value. The $101.2 million or 3.2% increase reflects $7.6 billion in loan originations and $237.9 million in repurchases, partially offset by $7.7 billion in loan sales, $28.8 million in fair value losses, and $14.5 million in principal payments.
Current wording
Loans Held for Sale, at Fair Value. The $522.5 million or 16.5% decrease reflects $16.4 billion in loan sales, $42.4 million in principal payments, and $13.4 million in fair value, partially offset by $15.4 billion in loan originations and $458.8 million in repurchases.
Previous wording
Derivative Assets, at Fair Value. The $27.7 million, or 65.4% increase reflects a $26.3 million increase in Hedging Instruments and a $1.4 million increase in IRLCs from higher notional balances and increasing rates.
Current wording
Derivative Assets, at Fair Value. The $16.9 million or 39.8% increase reflects a $12.7 million increase in Hedging Instruments and a $4.2 million increase in IRLCs from higher notional balances.
Previous wording
Loans Eligible for Repurchase. Loans eligible for repurchase were $1.3 billion as of March 31, 2026, as compared to $1.1 billion as of December 31, 2025, representing a increase of $270.2 million or 25.1%. The increase between periods was driven by an increase in Ginnie Mae serviced loans that were 90 days or more delinquent at March 31, 2026, partially offset by repurchased loans.
Current wording
Loans Eligible for Repurchase. Loans eligible for repurchase were $1.4 billion as of June 30, 2026, as compared to $1.1 billion as of December 31, 2025, representing an increase of $327.4 million or 30.5%. The increase between periods was driven by an increase in loans that were 90 days or more delinquent at June 30, 2026.
Previous wording
Servicing Rights, at Fair Value. The $33.0 million or 2.0% increase was comprised of $87.2 million of capitalized servicing rights from servicing-retained loan sales, partially offset by $51.4 million from principal amortization and prepayments and $3.3 million reduction from sales of servicing rights.
Current wording
Servicing Rights, at Fair Value. The $121.6 million or 7.3% increase was comprised of $185.5 million of capitalized servicing rights from servicing-retained loan sales and a $44.9 million increase in fair value related to improved market pricing from higher mortgage interest rates, decreased investor yield requirements and strong investor demand for lower coupon servicing, partially offset by $101.0 million from principal amortization and prepayments, and a $6.3 million reduction from sales of servicing rights associated with $202.1 million in UPB.
Previous wording
Warehouse and Other Lines of Credit. The increase of $121.6 million, or 4.2%, is consistent with the increase in loans held for sale during the three months ended March 31, 2026.
Current wording
Warehouse and Other Lines of Credit. The decrease of $458.7 million or 15.8% is consistent with the decrease in loans held for sale during the six months ended June 30, 2026.
Previous wording
Derivative Liabilities, at Fair Value. The increase of $6.5 million, or 61.0%, reflects a a $4.7 million increase in IRLCs and a $1.9 million increase in Hedging Instrument liabilities from higher interest rates.
Current wording
Derivative Liabilities, at Fair Value. The decrease of $4.4 million or 40.8% reflects a $3.6 million decrease in Hedging Instrument liabilities from higher interest rates and a $0.8 million decrease in IRLCs.
Previous wording
Debt Obligations, net. The increase of $14.3 million, or 0.7%, primarily relates to an $11.7 million increase in MSR facilities.
Current wording
Debt Obligations, net. The increase of $29.9 million or 1.4% primarily relates to a $40.8 million increase in secured credit facilities, offset by a $16.0 million repurchase of senior notes.
Previous wording
Equity. Total equity was $337.3 million and $386.0 million as of March 31, 2026 and December 31, 2025, respectively. The decrease was primarily attributed to a net loss of $54.9 million, partially offset by stock-based compensation of $6.4 million and increase of $1.0 million related to the issuance of common stock through the exercise of stock options.
Current wording
Equity. Total equity was $333.0 million and $386.0 million as of June 30, 2026 and December 31, 2025, respectively. The decrease was primarily attributed to a net loss of $61.6 million, $2.4 million in repurchases of treasury shares, and a $2.0 million decrease due to conversion-related adjustments to the TRA liability, partially offset by stock-based compensation of $11.7 million and an increase of $1.0 million related to the issuance of common stock through the exercise of stock options.
Previous wording
Our liquidity reflects our ability to meet current and potential cash requirements. We forecast the need to have adequate liquid funds available to operate and grow our business. As of March 31, 2026, unrestricted cash and cash equivalents were $277.4 million and committed and uncommitted available capacity under our warehouse and other lines of credit was $1.2 billion.
Current wording
Our liquidity reflects our ability to meet current and potential cash requirements. We forecast the need to have adequate liquid funds available to operate and grow our business. As of June 30, 2026, unrestricted cash and cash equivalents were $229.1 million and committed and uncommitted available capacity under our warehouse and other lines of credit was $1.9 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 March 31, 2026, our loans remained on warehouse lines for an average of 19 days. Our warehouse facilities are generally short-term borrowings with maturities of one year and our securitization facilities have two and three year terms. 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 69% of the mortgage loans that we originated during the three months ended March 31, 2026 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 other non-Agency 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 June 30, 2026, our loans remained on warehouse lines for an average of 15 days. Our warehouse facilities are generally short-term borrowings with maturities of one year and our securitization facilities have three year terms. 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 69% of the mortgage loans that we originated during the six months ended June 30, 2026 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 other non-Agency investors.
Previous wording
As of March 31, 2026, we maintained revolving lines of credit with eleven counterparties, including two loan funding facilities with GSEs, 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 March 31, 2026 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 March 31, 2026, we had $3.0 billion of borrowings outstanding and $1.2 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 June 30, 2026, we maintained revolving lines of credit with eleven counterparties, including two loan funding facilities with GSEs, providing warehouse and securitization facilities with borrowing capacity totaling $4.4 billion of which $1.5 billion was committed. Our $4.4 billion of capacity as of June 30, 2026 was comprised of $3.6 billion with staggered maturities within one year, a $300.0 million securitization facility that matures in April 2028, and a $500.0 million securitization facility that matures in April 2029. As of June 30, 2026, we had $2.4 billion of borrowings outstanding and $1.9 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 March 31, 2026, we had a total of $12.9 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 June 30, 2026, we had a total of $16.2 million in restricted cash posted as collateral with our warehouse and securitization facilities, of which $3.5 million was the minimum requirement.
Previous wording
MSR facilities and Term Notes provide financing for our servicing portfolio investments. As of March 31, 2026, our MSR facility secured by Fannie Mae had an outstanding balance of $102.6 million in MSR facilities and $198.1 million in Term Notes, secured by Fannie Mae MSRs totaling $420.3 million. As of March 31, 2026, our MSR facility secured by Freddie Mac had an outstanding balance of $311.6 million, secured by Freddie Mac MSRs totaling $488.0 million. As of March 31, 2026, our MSR facility secured by Ginnie Mae had an outstanding balance of $101.1 million in variable funding notes and $347.1 million in Term Notes, secured by Ginnie Mae MSRs totaling $675.9 million.
Current wording
MSR facilities and Term Notes provide financing for our servicing portfolio investments. As of June 30, 2026, our MSR facility secured by Fannie Mae had an outstanding balance of $117.6 million in MSR facilities and $198.2 million in Term Notes, secured by Fannie Mae MSRs totaling $396.9 million. As of June 30, 2026, our MSR facility secured by Freddie Mac had an outstanding balance of $321.8 million, secured by Freddie Mac MSRs totaling $396.7 million. As of June 30, 2026, our MSR facility secured by Ginnie Mae had an outstanding balance of $114.6 million in variable funding notes and $347.2 million in Term Notes, secured by Ginnie Mae MSRs totaling $696.4 million.
Previous wording
Securities financing facilities provide financing for the retained interest securities associated with our securitizations. As of March 31, 2026 there were outstanding securities financing facilities of $78.8 million, secured by trading securities with a fair value of $83.7 million.
Current wording
Securities financing facilities provide financing for the retained interest securities associated with our securitizations. As of June 30, 2026 there were outstanding securities financing facilities of $76.1 million, secured by trading securities with a fair value of $82.0 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 March 31, 2026 the outstanding balance on our servicing advance facilities was $77.7 million secured by servicing advance receivables totaling $90.0 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 June 30, 2026 the outstanding balance on our servicing advance facilities was $71.1 million secured by servicing advance receivables totaling $93.3 million.
Previous wording
Other secured financings as of March 31, 2026 consisted of securitization debt of $86.6 million, net of $4.5 million in discount and $0.7 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 June 30, 2026 consisted of securitization debt of $83.9 million, net of $3.9 million in discount and $0.6 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
Senior Notes as of March 31, 2026 consisted of secured Senior Notes totaling $313.8 million, net of $3.3 million of deferred financing costs and a discount of $23.6 million, and unsecured Senior Notes totaling $497.3 million, net of $2.1 million of deferred financing costs. 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 year ended December 31, 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. In November 2025, the remaining principal balance of $19.8 million on the 2025 Senior Notes was redeemed. Debt obligations are further discussed in Note 10- Debt Obligations of the Notes to Consolidated Financial Statements contained in Item 1.
Current wording
Senior Notes as of June 30, 2026 consisted of secured Senior Notes totaling $311.9 million, net of $2.8 million of deferred financing costs and a discount of $19.8 million, and unsecured Senior Notes totaling $487.7 million, net of $1.8 million of deferred financing costs. 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 year ended December 31, 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. In November 2025, the remaining principal balance of $19.8 million on the 2025 Senior Notes was redeemed. In June 2026, the Company repurchased $6.2 million of 2027 Senior Notes and $9.9 million of 2028 Senior Notes that resulted in a $1.2 million gain on extinguishment of debt, net of discount and deferred financing fees. In July 2026, the Company repurchased $5.2 million of 2027 Senior Notes at an average purchase price of 93.1% of par and $21.4 million of 2028 Senior Notes at an average purchase price of 84.1% of par. 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 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,” 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 B and Class C common stock to Class A common stock. These non-GAAP measures have limitations as analytical tools and should not be c…
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 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, 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,” 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 B and Class C common stock to Class A common stock. These non-GAAP measures have limitations as analytical tools and should not be considered i…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
(1)Represents the change in the fair value of servicing rights due to changes in valuation inputs or assumptions, net of gains or losses from derivatives hedging servicing rights. Refer to Note 5 - Servicing Rights, at Fair Value.
Current wording
(1)Represents the change in the fair value of servicing rights due to changes in valuation inputs or assumptions, net of gains or losses from derivatives hedging servicing rights, and gains (losses) from the sale of MSRs. Refer to Note 5 - Servicing Rights, at Fair Value.
Previous wording
(5)Represents expenses directly related to the Cybersecurity Incident, net of insurance recoveries during fiscal 2024, including costs to investigate and remediate the Cybersecurity Incident, the costs of customer notifications and identity protection, professional fees including legal expenses, litigation settlement costs, and commission guarantees.
Current wording
(5)Represents expenses directly related to the Cybersecurity Incident, net of insurance recoveries during fiscal 2024, including costs to investigate and remediate the Cybersecurity Incident, the costs of customer notifications and identity protection, professional fees including legal expenses, settlement costs, and commission guarantees.
Previous wording
(4)Represents expenses directly related to the Cybersecurity Incident, net of insurance recoveries during fiscal 2024, including costs to investigate and remediate the Cybersecurity Incident, the costs of customer notifications and identity protection, professional fees including legal expenses, litigation settlement costs, and commission guarantees.
Current wording
(4)Represents expenses directly related to the Cybersecurity Incident, net of insurance recoveries during fiscal 2024, including costs to investigate and remediate the Cybersecurity Incident, the costs of customer notifications and identity protection, professional fees including legal expenses, settlement costs, and commission guarantees.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
The $1.9 million or 1.1% increase in gain on origination and sale of loans, net was primarily driven by a 4.5% increase in pull-through weighted interest rate lock volumes and an increase in pull-through weighted gain on sale margin of 15 basis points.
Current report — wording carried from elsewhere
The following table sets forth our consolidated financial statement data for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Current report — wording carried from elsewhere
Gain on Origination and Sale of Loans, Net. Gain on origination and sale of loans, net was comprised of the following components: