This is the eighth partnership with a home builder that Loandepot is adding to its growing portfolio of joint ventures. Loandepot is looking to further expand this part of its business "with the right business partners," said Dan Peña, executive vice president of national joint ventures at Loandepot.

The formation of Ridgeland Mortgage will expand the mortgage lender's market presence to several Southern states, including North Carolina, Texas, Georgia, and Alabama, where Smith Douglas Homes develops properties.

The hope is to grab more purchase business opportunities.

"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," said Peña, in a press release Monday.

In a previous interview, Peña explained that in a joint venture Loandepot manages the mortgage company for the builder.

"The entity has loan officers, production people and leadership, and then there's a servicing agreement with Loandepot. We provide all the mortgage services: processing, underwriting, closing, funding and warehouse management. We do everything, and we charge the joint venture a fee," he said. Various structures can be used to partner with builders, the most typical being a 50/50 joint venture."If a builder is giving me a bigger split, they're probably getting the money somewhere else anyway, whether it's in price, margin or whatever. So we just tend to be very transparent with it, and say, 'Hey, it's 50/50," Peña said earlier in February.

Loandepot's longest standing JV is with home builder Meritage dubbed MTH Mortgage, established more than 20 years ago, the executive added Monday.

Smith Douglas Homes has a significant presence in the Southeast and is ranked as the 36th largest new home builder, according to a press release.

"Our partnership with Loandepot allows us to focus on what we do best — delivering incredible value to our customers with high quality homes at an affordable price point — while leveraging Loandepot's mortgage lending expertise to provide a smooth and seamless home loan process," said Greg Bennett, CEO of Smith Douglas Homes.

Loandepot is exploring several other avenues to grab purchase business apart from JV partnerships.

For example, Loandepot, already a top VA lender, is looking to further grow out its lending operation targeting veterans.

In September, Loandepot brought on board Bryan Bergjans, a VA vet and former Caliber Home Loans executive, as its national director of military growth and strategy. 

"We know that there are a lot of veterans in our country that have not used their eligibility," said John Bianchi, executive vice president of national sales at Loandepot. "Our focus is to grow VA volume and eligibility through education."

LoanDepot is leveraging social media platforms like Meta to host webinars aimed at veterans interested in purchasing homes or renovating properties, Bianchi added.