LoanDepot CEO To Step Down, Founder Hsieh To Rejoin Executive Leadership: Retail’s Bullish

LoanDepot (LDI) stock was down 2.2% in after-hours trading after the company said CEO Frank Martell would vacate his role, while founder and chair Anthony Hsieh would rejoin the executive leadership team.

The company said Martell would transition to a board advisory role after he steps down as CEO, effective at the company’s annual stockholders meeting on June 4.

The non-bank retail mortgage lender would engage an executive search firm to conduct a CEO search.

Hsieh, who served as the company’s chief executive from its foundation till 2022, would become the executive chairman of Mortgage Originations.

The Irvine, California-based company said that if it fails to appoint a CEO by the time Martell’s resignation becomes effective, Hsieh will serve as the interim CEO until someone is appointed.

“During Frank’s tenure, loanDepot successfully implemented the Vision 2025 strategic plan which stabilized the company during a turbulent mortgage market, significantly reduced costs, and made important investments for the future,” said board member Pam Patenaude.

The company is scheduled to release its fourth-quarter financial results on March 11 after markets close.

Retail sentiment on Stocktwits moved higher in the ‘bullish’ (64/100) territory than a day ago, while retail chatter rose to ‘normal.’

One retail user termed the executive change as an interesting development and said that 
Hsieh is no longer selling the company’s shares and now “he's back in the saddle.”

Over the past year, LoanDepot shares have fallen 28.7%.

The company posted an 18% rise in third-quarter revenue in November, aided by modest volume improvement.

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