loanDepot Inc., one of the nation's largest publicly traded mortgage lenders, reported a solid first quarter for 2025, marked by rising loan volumes, improved margins, and a narrowing net loss — signaling a potential turnaround amid a still-challenging housing market.
The lender, which operates in all 50 states with more than 200 branches nationwide, posted total revenue of $274 million for the quarter — up 23% year-over-year — driven in part by higher loan originations and improved gain-on-sale margins. The company reported a net loss of $40.7 million, a 43% improvement from the $71.5 million loss in the same quarter last year.
loanDepot originated $5.17 billion in loans in Q1 2025, up 14% from $4.56 billion a year earlier. Growth was fueled largely by a surge in government-backed lending, with FHA, VA, and USDA originations rising to $2.12 billion, up from $1.65 billion in Q1 2024.
Jumbo loan volume also saw a significant lift, increasing to $319 million from just $76 million last year. However, conventional conforming loan originations declined to $2.12 billion, down from $2.55 billion.
The company’s product mix reflected broader market shifts: purchase loans made up 59% of originations — down from 72% a year ago — while cash-out refinances nearly doubled to $1.85 billion. The rise in refis suggests homeowners are tapping into their equity while preserving low-rate first mortgages.
For the second quarter of 2025, loanDepot projects originations between $5.0 billion and $7.5 billion, with a pull-through weighted gain-on-sale margin expected to range between 300 and 350 basis points. The forecast reflects a seasonal uptick in purchase activity alongside ongoing market volatility.
On the servicing side, fee income fell to $104 million from $124 million a year earlier, which the company attributed to bulk mortgage servicing rights (MSR) sales in 2024. The servicing portfolio’s unpaid principal balance dropped to $116.6 billion — down 18% year-over-year from $142.3 billion.
Leadership Transition
In a key leadership shift, Founder and Chairman Anthony Hsieh has returned to daily operations and is slated to become interim CEO in June, taking over from Frank Martell, who will transition to a board advisory role.
Speaking on the Q1 earnings call, Hsieh said the company will lean into its core strengths — including its multi-channel sales model, proprietary tech stack, and servicing platform — to regain profitable market share.
loanDepot shares (NYSE: LDI) seesawed a bit following the earnings release. After falling 4.17% during regular trading to $1.08, the stock rebounded in after-hours trading to $1.10, suggesting a cautiously optimistic response from investors to the company’s improving performance.
