loanDepot completes migration of all mortgage loans to in-house servicing platform to support a best-in-class customer experience

Rhea-AI Summary

loanDepot, Inc. (LDI) has completed the migration of all mortgage loans serviced by its third-party sub-servicer to its in-house platform, enhancing operational efficiency and diversifying revenue streams. This two-year initiative demonstrates the company's commitment to in-house servicing capabilities, aiming to improve customer service and build loyalty. The transition aligns with LDI's Vision 2025 strategy by reducing sub-servicing costs and third-party vendor spending while capturing additional revenue opportunities. The company's leadership emphasizes the importance of a streamlined customer journey, which is expected to strengthen customer relationships and increase overall portfolio value.

Positive

• Successful completion of the migration of 100% of mortgage loans to an in-house servicing platform.
• Enhancement of operational efficiency by eliminating sub-servicing costs.
• Diversification of revenue streams through improved customer service and loyalty.
• Alignment with Vision 2025 strategy for cost reduction and efficiency.

Negative

• None.

Move advances Vision 2025 strategy, allowing for greater operational efficiency and diversification of revenue streams

IRVINE, Calif., Feb. 21, 2023 /PRNewswire/ -- Creating the best possible experience for customers, loanDepot, Inc. ("LDI" or "Company") (NYSE: LDI), has successfully migrated 100 percent of mortgage loans serviced by its third-party sub-servicer to its in-house platform. The move, which began in early 2021 and is now complete, enhances operational efficiency and allows the Company to diversify revenue streams.

"Bringing this two-year effort to the finish line is a true testament to loanDepot's ongoing investment in our in-house servicing capabilities and, in turn, our customers," said LDI Managing Director of Operations and Servicing Dan Binowitz. "Providing best-in-class customer service is our top priority and owning the entire customer journey enables us to build loyalty by providing the most hassle-free and streamlined service possible."

With the transition complete, loanDepot will continue to invest in its in-house servicing business, complementing its origination strategy to serve customers through the entire mortgage journey. This enables the Company to capture additional revenue opportunities over time by leveraging its marketing and customer acquisition expenses across a diverse set of products and services.

"Completing the migration of our servicing portfolio as part of loanDepot's purpose-driven strategy allows us to serve customers in the way they want to be served – and has cost-saving and revenue generating implications," said LDI President and CEO Frank Martell. "It strengthens our customer relationships while increasing the value of the portfolio to us by generating additional revenue opportunities."

This move advances loanDepot's Vision 2025 strategy by eliminating mortgage sub-servicing costs and further reducing third-party vendor spending, which is a significant step in realigning the Company's structure to serve customers more efficiently in the current market while building improved customer loyalty and brand affinity.

About loanDepot
loanDepot (NYSE: LDI; NMLS # 174457) is an equal housing lender and digital commerce company committed to serving its customers throughout the homeownership journey. Since its launch in 2010, loanDepot has revolutionized the mortgage industry with a digital-first approach that makes it easier, faster and less stressful to purchase or refinance a home. Today, as one of the nation's largest non-bank retail mortgage lenders, loanDepot enables customers to achieve the American dream of homeownership through a broad suite of lending and real estate services that simplify one of life's most complex transactions. With headquarters in Southern California and offices nationwide, loanDepot is committed to serving the communities in which its team lives and works through a variety of local, regional and national philanthropic efforts.

Media Contact
Jonathan Fine
VP, Public Relations
(781) 248-3963
jfine@loandepot.com

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SOURCE loanDepot, Inc.

FAQ

What is the significance of loanDepot's migration to in-house servicing?

The migration allows loanDepot to enhance operational efficiency, reduce costs, and diversify revenue streams while improving customer experience.

When did loanDepot complete the migration of all mortgage loans to its in-house platform?

loanDepot completed the migration on February 21, 2023.

How does the migration impact loanDepot's Vision 2025 strategy?

The migration supports Vision 2025 by reducing sub-servicing costs and aligning company operations for greater efficiency and customer loyalty.

What are the expected benefits of loanDepot's in-house servicing model?

Expected benefits include improved customer service, increased brand loyalty, and the capture of additional revenue opportunities.