Lender remains unprofitable despite boost in loan originations and refinancing
loanDepot posted a net loss of $40.7 million for the first quarter of 2025, narrowing its losses from the previous quarter but still falling short of profitability despite improved revenues and lower expenses.
The nonbank lender, which reported a $67.5 million loss in the fourth quarter, continued to face challenges as it recorded a net negative $41.1 million mark on the value of its mortgage servicing rights in Q1, following a $52.5 million negative mark in the prior period.
First-quarter expenses included $0.8 million tied to a cybersecurity incident, down significantly from the $14.7 million reported in the same quarter last year.
In terms of production, loanDepot saw encouraging volume increases. Pull-through weighted lock volume reached $5.4 billion, up 15% from the same period in 2024, while total loan originations hit $5.2 billion, a 14% year-over-year rise. Purchase loans accounted for 59% of total originations, down from 72% a year ago.
The lender’s preliminary organic refinance consumer direct recapture rate improved to 65%, up from 59% in Q1 2024. The servicing portfolio remained stable, closing March with $116.6 billion in unpaid principal balance.
loanDepot’s gain-on-sale margin rose notably, climbing from 2.60% in the fourth quarter to 3.72% in the first quarter. Still, net losses persisted. The adjusted net loss stood at $25.3 million for Q1 2025, compared to an adjusted loss of $38.1 million for the same period last year.
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Founder and executive chairman Anthony Hsieh pointed to the company’s strengths and future plans.
“Our multi-channel sales model, proprietary mello tech stack, wide product array, powerful brand muscle, and our servicing business are foundational places in which loanDepot can win,” Hsieh said in a press release.
“By leveraging this unique constellation of assets, plus adding to our arsenal with new and emerging technologies and platform refinements, I believe we are well positioned to regain profitable market share and scale our business.”
loanDepot expects Q2 2025 origination volume to be between $5.0 billion and $7.5 billion, with pull-through weighted rate lock volume projected between $5.5 billion and $8.0 billion. The company also anticipates a pull-through weighted gain-on-sale margin ranging from 300 to 350 basis points.
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