Mortgage

LoanDepot could make public debut this year at up to $15B

Company pulled the plug on prior IPO plans

LoanDepot is poised to go public later this year, becoming “Lyft to Rocket Mortgage’s Uber,” according to a new report.

The California-based mortgage lender headed by Anthony Hsieh could be worth between $12 billion and $15 billion in an IPO, according to Bloomberg‘s sources.

The company has held discussions with potential underwriters for an IPO that could happen as soon as the fourth quarter of this year.

The news comes on the heels of Rocket Mortgage’s successful IPO in August. Since it debuted at $18 a share, Rocket’s stock has surged over 25%, and the nation’s largest mortgage lender now sports a market cap of about $47 billion.

“We are the Lyft to their Uber,” Hsieh told Bloomberg. “The momentum for non-bank lending is here to stay. We’re here to fuel the American dream.”

LoanDepot, backed by Parthenon Capital Partners, announced plans to go public in September 2015, but canceled the IPO hours before pricing due to what the company called adverse “market conditions.” At the time, loanDepot had sought a market value of $2.4 billion to $2.6 billion. In March 2017, the company revived plans for an IPO.

LoanDepot was the sixth-largest mortgage lender in 2019, issuing 146,000 originations. It originated 52,000 purchase loans and 81,000 refinancings, according to data from the Consumer Financial Protection Bureau.

It’s a particularly opportune moment for lenders to consider going public. Over $1.1 trillion in originations were made during the second quarter, and originations this year are expected to reach an all-time high of $3.9 trillion.

Furthermore, the Fed signaled this week that interest rates will likely be close to zero through at least 2023, which should ensure high levels of volume for years to come.

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