LoanDepot Narrows Loss as Home Equity Mix Lifts Margin

The Tip Desk · August 4, 2026 · 3 min read

Second-quarter revenue reached $337 million as pull-through weighted gain on sale margin rose to 345 basis points.

loanDepot, Inc. (LDI), the mortgage originator, reported a $7 million net loss for the second quarter ended June 30, 2026, down from a $55 million net loss in the first quarter, as a shift toward home equity and government loans lifted revenue and operating leverage.

Loan origination volume increased 4% to $7.99 billion, reversing a 5% sequential decline in the first quarter. Unit volume increased 25% from the first quarter as the company expanded into home equity lending through its 5X5 HomeLoan product.

Total revenue grew 18% to $337 million, reversing an 8% sequential decline in the first quarter. Adjusted revenue increased 3% to $308 million. The company said the increase was primarily due to higher origination income and servicing revenue. Origination income, net, was $52 million. Servicing fee income was $112 million.

Pull-through weighted gain on sale margin increased 74 basis points to 345 basis points, reversing a 53 basis point sequential decline in the first quarter. The company attributed the margin improvement to a deliberate mix shift toward higher-margin home equity and government loans. Purchase volume totaled 57% of loans originated, up from 41% in the first quarter. FHA/VA/USDA volume was $2.82 billion.

Pull-through weighted lock volume was $6.6 billion, down $1.6 billion or 20% from the first quarter. The company said the decline primarily reflected the mix shift toward higher-margin HELOC production, which does not carry an associated interest rate lock. Rate lock volume was $9.0 billion.

Total expense increased less than 1% to $344 million from $342 million in the first quarter. Non-volume related expenses decreased $6.4 million from the first quarter, primarily reflecting lower salary-related costs, servicing expense, and other interest expense. Personnel expense was $181 million. Marketing and advertising expense was $27 million. Direct origination expense was $28 million.

Adjusted net loss was $29 million, compared with $34 million in the first quarter. Adjusted EBITDA was $20 million, compared with $14 million in the first quarter. Diluted loss was $0.02 a share.

Founder and Chief Executive Officer Anthony Hsieh said the company is making more loans, faster and at a lower cost, and that June demonstrated the strongest results so far this year. He said home equity lending is more stable, less rate sensitive, and less seasonal than refinance and purchase mortgage lending, with smaller loan balances but typically higher gain on sale and revenue and a significantly lower cost to produce.

The preliminary organic refinance consumer direct recapture rate decreased to 68% from 73% in the first quarter. The servicing portfolio was $123.4 billion of unpaid principal balance. Servicing rights, at fair value, were $1.78 billion. Cash and cash equivalents were $229 million. Available borrowing capacity was $1.9 billion.

The company repurchased $16 million of senior notes at an average purchase price of 90% of par during the quarter and an additional $27 million of notes at an average purchase price of 86% of par after quarter-end through July 30, 2026. Chief Financial Officer David Hayes said the company monetized approximately $10 billion of servicing rights after quarter end and is evaluating a range of options on bond maturities with retained advisors.

For the third quarter of 2026, loanDepot expects origination volume of between $6.25 billion and $8.25 billion, pull-through weighted rate lock volume of between $5.25 billion and $7.25 billion, and pull-through weighted gain on sale margin of between 360 basis points and 390 basis points.