Former CEO Anthony Hsieh returning to Loandepot

Former CEO Anthony Hsieh is coming back to help lead retail lender Loandepot, the company he founded in 2010. 

The Irvine, California-based company announced the leadership appointment, with Hsieh coming back to serve as executive chairman of mortgage originations. Current President and CEO Frank Martell will step down from his roles, effective June 4, and will transition to a board advisory position at that time. 

"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 in a press release. He currently serves as executive chairman but has no involvement in day-to-day operations. 

"We are grateful to Frank for his leadership during this pivotal time and wish him all the best. Loandepot is a special company with unique potential — and I am all in as we work together to drive a new era of growth and innovation," he also said. 

Loandepot will conduct an executive search for a new CEO to step in before its June board meeting. If a successor has not yet been named, Hsieh will take over the role on an interim basis. 

"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," said board member Pam Patenaude. 

The development marks the latest twist following what turned out to be a contentious battle for control of the company dating back to early 2023. 

Martell, former head of Corelogic, took over as Loandepot's president and CEO in April 2022. Among Martell's goals for the company was a cost-cutting initiative labeled Vision 2025, aimed at cutting costs by close to $400 million annually.  

A drawn-out proxy fight in early 2023 involved Hsieh attempting to use his controlling stake to install preferred candidates to the Loandepot board. The conflict over board leadership eventually resulted in his exit as the company's executive chair. Parties eventually reached a compromise, with Hsieh agreeing to not nominate board candidates in 2023 and 2024, but he remained critical of the company's path and whether it would result in future success. 

Later in 2023, four executives who joined the company under Hsieh's leadership tenure, were removed as part of Loandepot's goal to reduce expenses per the Vision 2025 plan, the company said. 

In last year's third quarter, the company finally achieved profitability for the first time in almost two years. The company's next earnings call is scheduled for March 11.

"We are deeply grateful for Frank's steadfast leadership over the past three years and during this transition," added Patenaude, who was one of Hsieh's board appointees. 

"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," she said. 

Hsieh's return also comes just weeks after the company emerged victorious from an ongoing lawsuit filed by former chief operating officer Tamara Richards, which claimed gender discrimination and wrongful termination. Hsieh was named as a defendant in the suit.