Is loanDepot a Buy?
The past year has been a bonanza for mortgage banking initial public offerings. Industry heavyweights such as Rocket and United Wholesale were the best known names. The most recent initial public offering has been loanDepot (NYSE: LDI), which recently reported its fourth-quarter and full-year earnings. Is the stock a buy?
loanDepot is a relative newcomer to the business, getting its start in 2010. The company is a primarily retail-focused mortgage originator that has invested heavily in technology, primarily via its proprietary platform, mello. The platform spans the entire mortgage process, from customer lead generation to servicing. loanDepot utilizes data analysis and machine learning to source leads and to recapture loans the company is servicing. The company attributes much of its success to its technology platform, which includes a database of 40 million unique individuals and 10 billion data points. The goal is to optimize lead conversion and to glean competitive insights.
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Source Fool.com
