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During the fourth quarter of 2020, loanDepot announced a net income of $547.2 million, down from $728.3 million in Q3. For the year ending December 31, 2020, the company announced $2 billion in profit, with an adjusted net income of $1.5 billion.
"I'm incredibly proud of and humbled by our record-breaking 2020 performance and thank our team members for their passionate commitment to our customers during an unprecedented year," said loanDepot Founder and CEO Anthony Hsieh.
February was a banner month for the company, launching its initial public offering (IPO) on February 11, 2021, and entering into a multi-year partnership agreement with Major League Baseball (MLB), where loanDepot was named "Official Mortgage Provider" of Major League Baseball.
Loan origination volume for Q4 2020 hit a loanDepot record of $37.4 billion, $10.2 billion or 38% more over the third quarter. Loan origination volume for 2020 totaled $100.8 billion, a 122% rise in loan origination volume over 2019.
During the fourth quarter of 2020, loanDepot donated $2 million to support individuals and families impacted by COVID-19, as well as providing support to several key charitable organizations. These donations bring the total amount donated in 2020 to support pandemic-relief and philanthropic efforts to $3 million.
The company’s mortgage servicing rights increased by 45%, or $347.4 million during the fourth quarter to a record $1.1 billion. This increase was driven by $411.3 million of new additions, partially offset by runoff of $80 million. During the fourth quarter of 2020, servicing retained loan sales increased as a result of the record level of loan originations.
Servicing income increased $67.5 million to $185.9 million for 2020, compared to $118.4 million in 2019, and increased $16 million or 33% to $64.4 million for the fourth quarter of 2020, compared to $48.4 million for the third quarter of 2020. Approximately 2.4%, or $2.4 billion, of loanDepot’s servicing portfolio was in active forbearance, a decline from 3.4%, or $2.6 billion, at the end of the third quarter of 2020.
The company employs more than 2,300 licensed mortgage loan professionals who work in the retail channel, accounting for $29.7 billion, or 79%, of loan originations. For the year ending December 31, 2020, loanDepot’s Retail Channel contributed $80.3 billion, or 80%, of loan originations.
