Loandepot has elevated two executives as it makes changes to its sales and originations divisions, part of an ongoing effort to return to profitability in the wake of disappointing second quarter results this week.
Tom Fiddler is stepping up to take on the newly-created position of president of retail lending. Fiddler, who previously oversaw loan production for the company’s east division, will be responsible for overseeing all retail loans across the company.
In a statement, CEO Anthony Hsieh described Fiddler as someone who “leads with authenticity, removes barriers for his team, and empowers people to succeed,” adding that he is someone who understands the retail side of business “at the deepest levels.” Fiddler previously was an executive at American Home Mortgage, Countrywide and Prospect Mortgage.
The company is also promoting Dan Peña to serve as president of partnership lending. Peña, who already has experience leading the company’s efforts in joint ventures, is expected to help further develop Loandepot’s connections with home builders.
The managerial shakeups are the latest at a company that has seen its fair share of C-suite drama recently. In March, founder and former CEO Anthony Hsieh returned to the helm two years after being pushed out in a bitter proxy fight. Loandepot also faced a lawsuit from its former COO who accused the lender of wrongful termination. The suit, which alleged that the company tried to loosen underwriting standards, was thrown out of court in February.
The California-based company is also facing a class action lawsuit from borrowers over its compensation structure. Plaintiffs in the case say that Loandepot pushed its LOs to give borrowers higher rates and punish officers who didn’t by cutting their pay.
Loandepot is looking to turn around what’s been a disappointing run, with losses in three of the past four quarters. To do so, the company is looking to expand its partnership with homebuilders, such as the joint venture it established in February with Onyx Homes. It’s also trying to build out technology like its mello platform.
Earlier this week Hsieh rehired mello executives Dominick Marchetti as chief digital officer and Sean DeJulia as chief innovation officer.
