The primary focus of the article is about LoanDepot’s response to the coronavirus pandemic. LoanDepot, a top finance provider, was proactive in taking steps to protect its liquidity and maintain access to unsecured and secured credit lines. As part of that process, they moved $225 million out of its signature warehouse subsidiary, holding company Mello Financial Solutions, to create a stronger balance sheet.

The move was a mutually beneficial situation, providing both the parent and subsidiary with a stronger balance sheet. For Mello Financial, this brings tighter control to their financials and allows them to better manage their business. The loanDepot balance sheet is also strengthened, as they were able to move substantial funds from the warehouse to increase liquidity from $26 million to $251 million at the end of March.

To accommodate their loan partners, LoanDepot has created multiple programs for homeowners, including a forbearance program for FHA and VA customers, allowing them to suspend payments for up to 90 days without having to begin a more complex loan modification process. Furthermore, for borrowers having trouble making payments, the company is allowing customers to use their Bank at Work program to make their repayment easier.

With these changes, LoanDepot is ready to support its borrowers with greater flexibility and more resources. By moving $225 million out of its signature warehouse subsidiary, they were able to ensure their liquidity, as well as better manage their financials. They have also created multiple programs to assist borrowers facing financial difficulties, such as forbearance programs and the Bank at Work program. Through these adaptations and proactive measures, LoanDepot is well placed to handle the economic strains brought on by the coronavirus pandemic.

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