Foothill Ranch-based mortgage lender loanDepot Inc. (NYSE: LDI) has made its technology unit called “mello” into an operating division.
LoanDepot will shift specific proprietary assets into the mello division, including oversight of the company’s customer contact center, its mello DataMart and performance marketing engine that makes over 10 million leads annually and connects with more than 1 million customers daily.
It will also house the firm’s mortgage adjacent businesses such as “melloinsurance,” “mello title” and escrow services.
It named fintech executive Zeenat Sidi as mello’s president and chief operating officer.
Sidi previously held leadership roles with Capital One Financial Corp (NYSE: COF), SoFi Technologies Inc. (Nasdaq: SOFI) and Royal Bank of Canada (NYSE: RY).
Chief Executive Anthony Hsieh said the new division was created to offer complimentary mortgage products and services from one source.
“Home equity levels are at a record $25 trillion right now, which provides many homeowners a unique opportunity to access that equity to invest in their homes as they consider remodeling or renovating, or to consolidate their debt and lower their monthly payments in a rising rate and inflationary environment,” Hsieh said.
Following the announcement, shares fell 4.6% to $3.73 each for a $1.2 billion market cap. The shares have fallen about 73% since it went public at $14 each last year.
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