Anthony Hsieh returns to loanDepot as Frank Martell departs

loanDepot founder and controlling shareholder Anthony Hsieh is returning to an operational role at the California-based mortgage lender and CEO Frank Martell is departing.

In an announcement made Thursday, loanDepot said Hsieh, the company’s chairman of the board, has returned as executive chairman of mortgage operations. Martell will step down from his current posts as of June 4 and transition to a board advisory role.

A company spokesperson declined HousingWire‘s request to comment on the leadership changes.

The company’s board will reportedly work with an executive search firm to find a new CEO. If a permanent CEO has not been appointed by the time of Martell’s exit on June 4, Hsieh will serve as interim CEO until a new one is appointed.

“We are deeply grateful for Frank’s steadfast leadership over the past three years and during this transition,” Pam Patenaude, a board member who chairs the nominating and corporate governance committee, said in a statement.

“During Frank’s tenure, loanDepot successfully implemented the Vision 2025 strategic plan which stabilized the company during a turbulent mortgage market, significantly reduced costs, and made important investments for the future. We are very fortunate that a leader of Anthony’s caliber is available to help guide the company as we search for a new CEO. He built the company from the ground up, and there is no one with more passion and energy for loanDepot than Anthony.”

In prepared remarks, Hsieh said he was grateful for Martell’s leadership.

“I’m ready to roll up my sleeves to do the hard work with our origination teams – and Team loanDepot at large — as we build upon the terrific foundation that’s been set here,” Hsieh said. “By working together, challenging the status quo and innovating, we can position our beloved Company for greatness — even in the face of a very protracted and challenging market cycle.”

loanDepot achieved profitability in the third quarter of 2024, ending an 11-quarter streak of financial losses. The lender’s stock price began to climb following the announcement on Thursday.

The leadership change also comes nearly two years after Hsieh settled a testy legal dispute with the board. Hsieh in February 2023 used his majority voting power to unilaterally nominate Steve Ozonian for election to the board of directors. The following day the company announced Hsieh was stepping down as executive chairman and remaining as chairman. Hsieh later said the board voted 5-2 to “terminate him” as executive chairman. In April 2023 Hsieh won the battle to nominate Ozonian and reduced the number of directors from nine to eight.

Editor’s note: This is a developing story and will be updated as more information becomes available.