loanDepot’s Q3 loss grows while it chases 2027 break-even

loanDepot widened its net loss in the third quarter of 2026 as it sold mortgage servicing rights (MSRs), repurchased debt and leaned into higher-margin products. The California-based nonbank lender reported a $29 million net loss in Q3, compared with a $7 million loss in the prior quarter, according to its earnings release Monday. Founder and CEO Anthony Hsieh told analysts that the quarter was challenged by unexpectedly higher interest rates but said the company remains focused on gaining market share despite depressed volumes. “Getting over the seasonality of Q4 and Q1, and of course not knowing where the market will end up next year, but if it stays at this level, we are very confident that we’ll get to a break even of profitability by first half or mid next year,” Hsieh said. loanDepot originated $7.05 billion in mortgages in the third quarter, down 12% from the prior quarter but up 7.8% year over year. Purchase loans made up more than 61% of total volume. On a unit basis, originations rose 7% quarter over quarter, helped by the company’s expansion into home equity products. Management said loanDepot estimates it ranked among the top three nonbank home equity lenders in the thi...