loanDepot Receives NYSE Deficiency Notice After Common Stock Price Drops Below One Dollar
Nonbank mortgage lender loanDepot Inc. recently disclosed that it received a stock price deficiency notice from the New York Stock Exchange. The notification was triggered after the average closing price of the company's Class A common stock remained below $1 for 30 consecutive trading days. According to the Irvine, California-based lender, the notice does not trigger any immediate operational changes, nor does it impact the listing, trading, or Securities and Exchange Commission reporting obligations of the business.
Under New York Stock Exchange rules, loanDepot must respond within 10 business days to confirm its plan to cure the deficiency. The company has a six-month window from the receipt of the notice to restore its stock price and 30-day average closing price above the $1 threshold. To meet this standard, loanDepot stated that it is considering various options, including a potential reverse stock split that would be subject to shareholder approval at or prior to its next annual shareholder meeting.
The listing notice coincides with incremental operational improvements reported by the company. For the second quarter, loanDepot reported a net loss of $6.6 million, representing a notable recovery compared to its $54.9 million net loss recorded during the first quarter. Second-quarter revenue rose 18% quarter-over-quarter to $337.3 million, supported by a 4% increase in origination volume to nearly $8 billion. The company also recorded a gain-on-sale margin of 3.45%, benefiting from a strategic expansion into higher-margin home equity offerings.
To adapt to broader mortgage market headwinds and persistent low refinance demand, loanDepot is pursuing a broader transformation agenda. Chief Executive Officer Anthony Hsieh pointed to recent progress in expanding purchase market share, launching home equity product lines, and re-entering the wholesale mortgage channel. The company, which was founded in 2010 and operates nationwide, relies heavily on technology-driven originations and non-refinance mortgage products to drive revenue growth while overall interest rates remain elevated.
This development affects real estate investors, mortgage originators, and industry partners who track the stability and market position of major nonbank lenders. Confirmed facts confirm that loanDepot’s daily mortgage servicing, loan processing, and customer support remain completely operational without immediate interruption. A reasonable analysis indicates that corporate actions such as a reverse stock split could resolve the compliance issue, but long-term equity stability will depend on sustained profitability in purchase and wholesale channels. However, uncertainty remains regarding how broader interest rate fluctuations will influence total mortgage demand in upcoming quarters. One concrete practical implication for real estate professionals working with loanDepot is that current loan applications and origination workflows will proceed normally, though partners should stay informed on wholesale channel updates and product strategy shifts as the lender recalibrates its business mix.
Source: HousingWire
