Form 4: loanDepot CEO Converts 2M Shares to Class A Stock

loanDepot's Executive Chair and CEO, Anthony Hsieh, elected to convert 2 million Class C Common Stock and Common Units into Class A Common Stock, effective November 1, 2025.

Summary

• Anthony Li Hsieh, Executive Chair, CEO & President, and a 10% owner of loanDepot, Inc. (LDI), reported a change in beneficial ownership.
• The transaction involves an election made on October 20, 2025, to exchange securities, with an effective date of November 1, 2025.
• Hsieh, through Trilogy Mortgage Holdings, Inc., elected to exchange 2,000,000 Common Units for an equal number of Class A Common Stock.
• Concurrently, 2,000,000 shares of Class C Common Stock corresponding to the exchanged Common Units were cancelled for no consideration.
• The transaction results in an increase of 2,000,000 shares of Class A Common Stock beneficially owned indirectly by Hsieh via JLSSAA Trust, and a decrease of 2,000,000 shares of Class C Common Stock beneficially owned indirectly via Trilogy Mortgage Holdings, Inc.
• The exchange was made at a price of $0, as it represents a conversion mechanism rather than a sale or purchase.

Sentiment

Score: 7

Explanation: The conversion of Class C Common Stock and Common Units to Class A Common Stock by a key executive is a procedural transaction that aligns the executive's ownership more directly with the publicly traded shares. It is generally viewed as a neutral to slightly positive event, indicating confidence and simplifying the ownership structure.

Positives

• The conversion of Class C Common Stock and Common Units to Class A Common Stock by a key executive may signal confidence in the company's publicly traded equity.
• The transaction increases the direct beneficial ownership of Class A Common Stock, which is the publicly traded class, potentially aligning executive interests more closely with public shareholders.

Management Comments

• The reporting person elected to cause Trilogy Mortgage Holdings, Inc. to exchange a portion of the Common Units held for the reporting person's benefit by such entity for an equal number of shares of Class A Common Stock.

Related Party Transactions

• The transaction involves the exchange of securities held indirectly by Anthony Hsieh through entities such as Trilogy Mortgage Holdings, Inc., JLSA, LLC, Trilogy Management Investors Six, LLC, and The JLSSAA Trust, over which he has voting and investment power.

Stakeholder Impact

• Shareholders: The conversion increases the number of Class A Common Stock held by a key executive, potentially aligning interests. It does not dilute existing Class A shareholders as it is a conversion, not a new issuance for cash.
• Management: Simplifies the executive's ownership structure by converting to the publicly traded Class A shares.

Next Steps

• The exchange of Common Units and Class C Common Stock for Class A Common Stock will become effective on November 1, 2025.

Key Dates

Recommendation

This Form 4 reports a routine conversion of Class C Common Stock and Common Units into Class A Common Stock by a key executive. Such conversions are typically pre-arranged mechanisms related to the company's IPO structure and do not inherently signal a significant change in the company's fundamental outlook or operational performance. Therefore, it does not warrant a change in investment recommendation based solely on this filing.

Keywords

loanDepot, LDI, Anthony Hsieh, Form 4, insider transaction, stock conversion, Class A Common Stock, Class C Common Stock, Common Units, beneficial ownership