Form 4: loanDepot CEO Hsieh Converts 2.3M Shares to Class A

loanDepot's Executive Chair, CEO, and President, Anthony Li Hsieh, converted 2.3 million Common Units and Class C Common Stock into Class A Common Stock.

Summary

• Anthony Li Hsieh, Executive Chair, CEO & President, and a 10% owner of loanDepot, Inc. (LDI), filed a Form 4 reporting a change in beneficial ownership.
• The transaction involves an election made on November 19, 2025, with an effective date of December 1, 2025.
• Hsieh, through Trilogy Mortgage Holdings, Inc., elected to exchange 2,300,000 Common Units of LD Holdings Group LLC and an equal number of loanDepot's Class C Common Stock for 2,300,000 shares of loanDepot's Class A Common Stock.
• The Class C Common Stock corresponding to the exchanged Common Units was cancelled for no consideration.
• Following this transaction, Hsieh's indirect beneficial ownership of Class C Common Stock through Trilogy Mortgage Holdings, Inc. decreased by 2,300,000 shares.
• His indirect beneficial ownership of Class A Common Stock through JLSSAA Trust increased by 2,300,000 shares.
• Post-transaction, Hsieh's beneficial ownership includes 26,245,633 Class C Common Stock (indirect via Trilogy Mortgage Holdings, Inc.), 3,114,521 Class C Common Stock (indirect via JLSSAA Trust), 4,310,497 Class C Common Stock (indirect via JLSA, LLC), and 66,404,880 Class C Common Stock (indirect via Trilogy Management Investors Six, LLC).
• Direct beneficial ownership of Class A Common Stock is 143,677 shares, and indirect beneficial ownership via JLSSAA Trust is 2,300,000 shares.

Sentiment

Score: 5

Explanation: The filing reports a structural change in the reporting person's beneficial ownership, converting Class C Common Stock and Common Units into Class A Common Stock, which is a neutral event in terms of company performance or operational outlook.

Positives

• The conversion of Class C Common Stock and Common Units into Class A Common Stock simplifies the ownership structure for the reporting person.
• Class A Common Stock is typically more liquid and directly tradable on public exchanges, potentially increasing the flexibility of the reporting person's holdings.
• The transaction is part of a pre-existing redemption right outlined in the company's LLC agreement, indicating a planned and orderly process for such conversions.

Future Outlook

The filing does not contain forward-looking statements or guidance beyond the effective date of the reported transaction.

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.

Industry Context

This announcement pertains to an internal corporate governance and ownership structure change for a key executive at loanDepot, Inc. It does not directly reflect broader industry trends or competitive dynamics, but rather a strategic adjustment in the executive's equity holdings within the company.

Corporate Governance

Related Party Transactions

• The transaction involves entities (Trilogy Mortgage Holdings, Inc., JLSSAA Trust, JLSA, LLC, Trilogy Management Investors Six, LLC) over which Anthony Hsieh has voting and investment power, making it a related-party transaction. The exchange is for no cash consideration, reflecting an internal restructuring of beneficial ownership.

Stakeholder Impact

• Shareholders: The conversion increases the reporting person's direct exposure to the publicly traded Class A Common Stock, potentially aligning their interests more closely with public shareholders.
• Reporting Person: Simplifies and potentially increases the liquidity of their equity holdings in loanDepot.

Next Steps

• The exchange transaction will become effective as of December 1, 2025.

Key Dates

Keywords

loanDepot, LDI, Anthony Hsieh, Insider Transaction, Form 4, Beneficial Ownership, Class A Common Stock, Class C Common Stock, Common Units, Equity Conversion