Summary
loanDepot has received an NYSE deficiency notice after the average closing price of its Class A common stock remained below $1 for 30 consecutive trading days. The company has six months to regain compliance with the exchange’s minimum share-price requirement.
loanDepot has received a deficiency notice from the New York Stock Exchange after its Class A common stock fell below the exchange’s minimum continued-listing price requirement.
The mortgage lender disclosed Friday that it received written notice from the NYSE on Aug. 21 that it was not in compliance with Section 802.01C of the NYSE Listed Company Manual.
According to loanDepot, the notice was issued because, as of Aug. 20, the average closing price of its Class A common stock was below $1 per share over a consecutive 30-trading-day period.
The notice does not immediately remove loanDepot’s stock from the NYSE.
The company said its shares can continue trading during the applicable cure period, subject to compliance with the NYSE’s other continued-listing requirements. The notice also does not have an immediate effect on loanDepot’s business operations or its SEC reporting obligations.
Under NYSE rules, loanDepot has six months following receipt of the notice to regain compliance with the minimum share-price requirement.
The company can regain compliance if, on the final trading day of a calendar month during that six-month period, its stock has a closing price of at least $1 per share and an average closing price of at least $1 over the preceding 30 trading days.
loanDepot said it will notify the NYSE within 10 business days of its intent to cure the deficiency.
The company also said it will consider available alternatives to restore compliance, including, if necessary, a reverse stock split.
Any reverse stock split would require stockholder approval. loanDepot said that approval would need to occur no later than its next annual meeting of stockholders, which the company currently anticipates will be held in early June 2027.
If loanDepot does not regain compliance within the applicable period, the NYSE would initiate procedures to suspend and delist the company’s Class A common stock.
In announcing the notice, loanDepot Founder and CEO Anthony Hsieh pointed to what the company described as progress in its broader turnaround efforts.
loanDepot reported that its unit volume increased 25% during the most recent quarter, revenue increased 18%, and purchase market share increased 33%. The company also cited its expansion into home-equity lending and its return to the wholesale mortgage market.
Those figures were presented by loanDepot as part of its response to the NYSE notice.
For now, loanDepot remains listed and trading on the New York Stock Exchange while management works to bring its share price back into compliance with the exchange’s minimum price standard.
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