Loandepot, Inc. current report, 12 January 2024

Full document

Business Context and Reporting Period

loanDepot, Inc. filed this Form 8-K on January 17, 2024, reporting an agreement executed on January 12, 2024. The filing concerns loanDepot.com, LLC, an indirect subsidiary, and the loanDepot Agency Advance Receivables Trust, which finances servicing advance receivables related to residential mortgage loans serviced for Fannie Mae and Freddie Mac.

Material Agreement and Financial Implications

On January 12, 2024, the parties entered into Amendment No. 3 to the Base Indenture governing the Series 2020-VF1 Variable Funding Notes. The amendment moved the January 2024 payment date from January 12, 2024 to January 22, 2024.

The extension was intended to allow the Company to finalize the payment amount due under the Base Indenture following the cybersecurity incident previously disclosed by loanDepot on January 8, 2024. The filing does not provide the payment amount, any change to the notes’ principal or interest terms, or quantified financial effects.

Revenue, Profit, Cash Flow, Debt, and Liquidity

  • The filing provides no revenue, earnings, cash flow, margin, balance-sheet, or liquidity metrics.
  • The Series 2020-VF1 Variable Funding Notes remain the relevant financing arrangement described in the filing.
  • The filing does not clearly state the outstanding balance, interest rate, borrowing capacity, collateral balance, or payment amount associated with the notes.

Outlook, Risks, and Unusual Items

  • The cybersecurity incident was an unusual event affecting the timing and finalization of the January 2024 payment calculation.
  • The filing does not provide an earnings outlook, operating guidance, remediation cost estimate, insurance recovery estimate, or detailed description of the cybersecurity incident’s broader financial or operational impact.
  • The amendment changes only the January 2024 payment date, according to the filing’s description; the full amendment should be reviewed to confirm the complete legal terms.

Investor Verification Items

  1. Review Exhibit 10.1 to confirm the complete terms of Amendment No. 3 and whether any provisions beyond the payment-date change apply.
  2. Verify the finalized January 2024 payment amount and whether it was paid on January 22, 2024.
  3. Review subsequent filings for the cybersecurity incident’s effect on operations, servicing activities, liquidity, costs, and financial reporting.
  4. Confirm the outstanding balance, collateral, and remaining terms of the Series 2020-VF1 Variable Funding Notes.