loanDepot eyes purchase business in the South with new mortgage JV

loanDepot has signed a new joint venture agreement with Smith Douglas Homes, a top-50 homebuilder with a solid book of business in the Southern states.

Known as Ridgeland Mortgage, the joint venture will expand loanDepot’s footprint in a region where new-home sales account for roughly one-third to one-half of all transactions, depending on the market.

In a statement issued on Monday, loanDepot said its partnership with Smith Douglas Homes, the nation’s 36th-largest homebuilder, would provide it strong purchase business in Atlanta and central Georgia, as well as Houston; Birmingham and Huntsville, Alabama; Charlotte and Raleigh, North Carolina; and Chattanooga and Nashville, Tennessee.

“Smith Douglas Homes’ approach to the new construction market is perfectly aligned with loanDepot’s commitment to serving the needs of first-time homebuyers,” said Dan Peña, executive vice president of national joint ventures for loanDepot.

“Our new joint venture helps both companies make the American dream of home ownership possible for more families while providing Smith Douglas Homes with access to an unparalleled lending platform that will deliver an exceptional customer experience.”

Smith Douglas Homes sold 2,297 homes in 2023.

loanDepot has a variety of partnerships with homebuilders across the country. Its partners include Schell Brothers, AV Homes, Meritage Homes, Michael Saunders & Co, Tripointe Homes, Polygon Northwest Homes and LGI Homes.

The retail lender is scheduled to announce its third-quarter earnings on Tuesday. In the second quarter, the company lost $16 million, which included costs related to a hacking incident in the first quarter.