loanDepot, Inc. reported financial progress in 2024, with revenue increasing and net losses narrowing as the mortgage lender continued its restructuring efforts amid a challenging housing market.
For loanDepot, 2024 was a year of careful recalibration. The California-based mortgage giant, like much of the housing market it serves, has spent the past several years navigating treacherous economic terrain, buffeted by rising interest rates, shifting consumer demand, and the ever-present specter of regulatory scrutiny. Now, as it rounds the corner into 2025, the company is clinging to signs of progress —stronger revenue, a tighter balance sheet, and, above all, a roadmap for the future.
The numbers tell a cautiously optimistic story.
In the fourth quarter, loan origination volume grew 34% to $7.2 billion, driven by higher demand for refinancing transactions. Purchase volume totaled 58% of total loans originated during the fourth quarter, down from 76% during the fourth quarter of 2023, reflecting the increased demand for refinance transactions during the period of lower market rates experienced during the third quarter of 2024, which were still being closed in the fourth quarter.
Revenue climbed 13% year-over-year to $257 million, with adjusted revenue increasing 6% to $267 million. The company reported a net loss of $67 million for the quarter, slightly wider than the $60 million loss in the same period a year earlier. Adjusted net losses reached $47 million, reflecting increased costs tied to the higher volume of loans. During the quarter, loanDepot also expanded its network of joint venture partnerships, securing new agreements with Smith Douglas Homes and Onx Homes. Liquidity remained strong, with a cash balance of $422 million.
For the full year, loanDepot’s revenue rose 9% to $1.06 billion, while adjusted revenue increased 10% to $1.10 billion. The company’s gain on sale margin expanded to 317 basis points, reflecting a 42-basis-point improvement from 2023. Net losses narrowed to $202 million from $236 million the prior year, though the figure included $25 million in cybersecurity-related costs. Adjusted net losses improved to $95 million from $152 million, aided by revenue growth and cost-cutting measures. Adjusted EBITDA saw a notable increase, rising to $84 million from $6 million in 2023. The company also refinanced its 2025 corporate debt, extending its maturity and reducing its outstanding obligations by $137 million.
As the company looks ahead to 2025, executives expressed confidence in its ability to sustain momentum. President and CEO Frank Martell, who plans to step down from his posts in June 2025, noted that the completion of the company’s Vision 2025 strategic plan had positioned loanDepot for growth, while the recently announced Project North Star initiative would help drive profitability. “The strategic imperatives of Vision 2025 served as our roadmap for successfully navigating the historical downturn in the housing and mortgage markets,” Martell said. “As the company enters 2025, I believe team loanDepot is positioned to accelerate revenue growth and continue our progress toward sustainable profitability.”
For the first quarter of 2025, loanDepot expects loan origination volume to range between $4.5 billion and $5.5 billion, with pull-through weighted rate lock volume projected between $4.8 billion and $5.8 billion. The company anticipates a gain on sale margin between 320 and 340 basis points.
After years of restructuring to adapt to market volatility, loanDepot is betting on technology and operational efficiencies to strengthen its position in the industry.
