loanDepot reported a wider-than-expected loss for the third quarter of 2026, as revenue of $307.1 million fell short of analyst projections. Despite a 12% sequential decline in total origination volume to $7.05 billion, the company achieved significant margin expansion and met operational milestones in its pivot toward higher-margin, less rate-sensitive lending products.
Key Highlights
- Pull-through weighted gain on sale margin expanded 54 basis points sequentially to 3.99%, exceeding the high end of management's prior guidance range of 3.60% to 3.90%.
- Unit volume increased 7% from the second quarter of 2026, reflecting strong momentum in the company's expansion of home equity lending products.
- Strategic liquidity management included the sale of $10 billion in Agency mortgage servicing rights (MSRs) and the opportunistic repurchase of $87 million in senior notes at 88% of par.
- Productivity initiatives were accelerated, with the expected annualized cost savings target increased from $12 million to $25 million.