SCHEDULE: loanDepot Founder Anthony Hsieh Reduces Stake

Anthony Hsieh, founder of loanDepot, Inc., has significantly reduced his beneficial ownership in the company through recent sales of Class A Common Stock.

Summary

• This document is Amendment No. 19 to the Schedule 13D filing by Anthony Hsieh regarding his beneficial ownership in loanDepot, Inc.
• As of the filing date, Anthony Hsieh beneficially owns 116,088,762 shares of Class A Common Stock, representing 49.63% of the class.
• The beneficial ownership percentage is calculated assuming the conversion of Hsieh's Class C Common Stock but no other Class C Common Stock, based on 112,351,102 Class A shares outstanding on August 6, 2025.
• Hsieh also holds 73,819 unvested restricted stock units (RSUs) and 1,500,000 unvested performance stock units (PSUs).
• Through the JLSSAA Trust, Hsieh sold a total of 6,200,171 shares of Class A Common Stock across three dates in September 2025.
• The sales occurred at weighted average prices ranging from $2.1746 on September 4, 2025, to $3.2541 on September 9, 2025.

Sentiment

Score: 3

Explanation: The significant insider selling by the founder, Anthony Hsieh, despite rising stock prices during the sale period, generally indicates a negative sentiment from a key stakeholder. While the rising price is a positive, the act of selling such a large block of shares by a founder often raises concerns about long-term commitment or future outlook.

Positives

• The company's Class A Common Stock price demonstrated an upward trend during the period of the reported sales, with weighted average prices increasing from $2.1746 on September 4, 2025, to $3.2541 on September 9, 2025.

Negatives

• Anthony Hsieh, a significant beneficial owner and founder, sold a substantial amount of Class A Common Stock, totaling 6,200,171 shares, which could be interpreted as a move to diversify holdings or a signal of reduced confidence.
• Large-scale insider selling by a key founder may raise concerns among investors regarding the company's future prospects or the insider's long-term commitment.

Risks

• Significant insider selling by a founder could signal potential future challenges or a lack of confidence in the company's long-term growth trajectory.
• The market perception of such large-scale insider sales may lead to increased selling pressure on the stock.

Future Outlook

NA

Industry Context

This filing reflects a significant change in the ownership structure of loanDepot, a prominent player in the mortgage lending industry. While the filing itself does not provide industry-specific financial data, large insider sales by a founder in a cyclical industry like mortgage lending can be closely watched by investors for signals regarding market conditions or company-specific challenges, especially given the sensitivity of the sector to interest rate fluctuations and housing market dynamics.

Stakeholder Impact

• Shareholders: May interpret the significant insider selling by the founder as a negative signal, potentially leading to decreased investor confidence and downward pressure on the stock price.
• Employees: No direct impact mentioned, but a founder reducing their stake could subtly affect morale or long-term strategic direction perception.

Next Steps

• The Reporting Person undertakes to provide the Issuer, any security holder, or the SEC staff, upon request, specific trade amounts and pricing for the reported transactions.

Key Dates

Recommendation

While the significant insider selling by founder Anthony Hsieh is a notable event that could signal a lack of confidence or a desire for diversification, the sales occurred at increasing prices, suggesting market demand during the period. Given that Hsieh still retains a substantial 49.63% beneficial ownership, the move might be interpreted as a partial de-risking rather than a full exit. Investors should monitor future insider activity and company performance, but a 'hold' recommendation is appropriate to observe how the market digests this information and how the company's operational results evolve.

Keywords

loanDepot, Anthony Hsieh, Schedule 13D, beneficial ownership, insider selling, Class A Common Stock, stock sales, founder, equity stake