loanDepot has received a deficiency notice from the New York Stock Exchange after the average closing price of its Class A common stock fell below $1 for 30 consecutive trading days, the company said Friday.
The Irvine, California-based nonbank lender said the letter from the NYSE does not immediately affect the listing or trading of its Class A common stock, or its business operations and Securities and Exchange Commission (SEC) reporting obligations.
In a statement, loanDepot said it intends to cure the deficiency and return to compliance with the NYSE’s continued listing standards. Under NYSE rules, the company has 10 business days from receipt of the notice to notify the exchange of its plans and six months to bring its share price and 30-day average back above $1.
The lender said it will consider “available alternatives” to restore compliance, including a potential reverse stock split that would require shareholder approval at or before its next annual meeting, expected in early June 2027.
“As we continue to execute our transformation agenda to position loanDepot for profitable market share growth, we are making significant progress,” founder and CEO Anthony Hsieh said in a statement, citing recent gains in unit volume, revenue and purchase market share, along with an expansion into home equity lending and a re-entry into wholesale.
Financially, loanDepot reported a second-quarter net loss of $6.6 million, improved from $54.9 million in the first quarter, as revenue rose 18% to $337.3 million. Originations increased 4% to nearly $8 billion, and gain on sale margin rose to 3.45% on more home equity mix.
loanDepot, founded in 2010, is licensed in all 50 states and offers a range of mortgage and home equity products. The company has been pursuing a transformation strategy focused on purchase lending, home equity and technology-driven origination as refinance volumes remain muted.
This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication.
