The recent launch of home-equity line-of-credit products by loanDepot Inc. was a success, and the lender has expanded the number of states in which HELOCs are available. But the positive activity was not enough to stem losses at the company.
Last November’s HELOC product launch in five states was “successful,” loanDepot President and Chief Executive Officer Frank Martell said Wednesday in the fourth-quarter earnings report.
The fintech noted in today’s report that HELOCs, which give “efficient access to record levels of home equity in as little as seven days,” are now available in 38 states.
But the optimistic HELOC report didn’t carry over to the Irvine, California-based company’s earnings, with a $158 million fourth-quarter company-wide loss reported. Losses widened from $137 million in the third quarter and swung from a $15 million profit in the final three months of 2021.
“Only a small number of HELOC loans were funded before quarter end so their contribution to revenue was not material to our results,” the report stated.