At a Glance
Rating Breakdown
About loanDepot
loanDepot (NYSE: LDI) was founded in 2010 by Anthony Hsieh, a serial mortgage industry entrepreneur who previously built and sold two other mortgage companies. Headquartered in Irvine, California, loanDepot has originated over $275 billion in loans and went public in 2021. The company is the second-largest non-bank retail mortgage lender in the US, operating both a digital platform (mello smartloan) and over 150 physical retail locations. As a non-bank lender, loanDepot does not take deposits and funds loans through warehouse credit lines, selling the majority to the secondary market and retaining servicing. The signature feature is the Lifetime Guarantee, which waives all lender fees and closing costs on future refinances for existing loanDepot customers. This is a meaningful benefit in a rate environment where borrowers purchase at high rates expecting to refinance later. On a $400,000 loan, waived lender fees on a refinance save approximately $2,000-$6,000. However, the guarantee covers only lender fees, not third-party costs like appraisal, title insurance, and recording fees, which typically add $2,000-$4,000. So the refinance is not truly free, but the lender-fee waiver is genuine and contractually binding. The program only applies when refinancing with loanDepot, creating a retention mechanism that discourages borrowers from shopping other lenders on the refinance. LoanDepot experienced significant challenges in 2022-2024 as rising rates crushed refinance volume industry-wide. The company laid off over 4,000 employees, its stock dropped over 90% from IPO price, and it reported consecutive quarterly losses. A January 2024 cybersecurity incident exposed approximately 16.6 million customer records. These operational issues are relevant to borrowers evaluating long-term servicing reliability. The company remains a licensed, funded lender, and loans are backed by secondary-market investors regardless of loanDepot's financial health. But the Lifetime Guarantee is only as valuable as loanDepot's continued existence as a going concern.
Key Features
Lifetime Guarantee
Existing loanDepot customers pay zero lender fees on future refinances with the Lifetime Guarantee program.
mello smartloan
loanDepot's digital mortgage platform that speeds up the application and closing process.
Hybrid Service Model
Apply online or visit one of over 150 local branches for in-person assistance.
How It Works
Start Online
Begin your application through the mello smartloan digital platform or call a loan consultant.
Get Pre-Approved
Receive a pre-approval letter with verified rate and loan amount options.
Submit Documents
Upload income, asset, and employment verification through the secure portal.
Close Your Loan
Complete your closing digitally or at one of the retail branch locations.
What They Do
- Conventional Mortgages
- FHA Loans
- VA Loans
- Jumbo Loans
- Refinancing
- Home Equity Loans
- Personal Loans
Debt Types They Take On
- Home Purchase
- Rate-and-Term Refinance
- Cash-Out Refinance
- FHA Streamline
- VA IRRRL
Fee & Cost Structure
Regulatory & Trust
Review Summary
Notable Case Studies
Purchase Now, Refinance Later Strategy
A first-time homebuyer purchased a $420,000 home in 2024 with 15% down ($63,000) through loanDepot at 7.25% APR on a 30-year conventional mortgage with 0.75% origination fee ($2,678). Monthly P&I: $2,436. The borrower's strategy was to lock in the Lifetime Guarantee and refinance when rates dropped below 6%.
VA Cash-Out Refinance
A veteran with a $285,000 VA loan at 6.875% needed $45,000 for home repairs and medical expenses. Home valued at $410,000. Explored a HELOC (8.5% variable) versus a VA cash-out refinance.
Pros & Cons
Pros
- Lifetime Guarantee waives lender fees on future refinances, saving $2,000-$6,000 each time and making the purchase-now-refinance-later strategy significantly cheaper for loanDepot customers
- Over 150 branch locations provide in-person service for borrowers who prefer face-to-face guidance, particularly for first-time buyers or complex loan structures
- Full product range including conventional, FHA, VA, jumbo, personal loans, and home equity products, with particular depth in refinancing expertise
- mello smartloan digital platform provides a competitive online experience for borrowers who prefer self-service, while retaining the option for phone or in-person support
- FHA Streamline and VA IRRRL refinance products available, which offer simplified refinancing for existing FHA and VA borrowers with reduced documentation requirements
Cons
- Origination fees up to 1.5% are the highest among major lenders in this category, adding up to $6,000 on a $400,000 loan. This partially offsets the Lifetime Guarantee savings if you only refinance once
- The January 2024 cybersecurity breach exposed 16.6 million customer records, raising serious concerns about data security practices. Borrowers should monitor their credit and consider identity theft protection
- CFPB complaint volume of 5,200 over three years is among the highest in this comparison, with common complaints about escrow mismanagement, communication breakdowns, and closing delays
- Stock has dropped over 90% from IPO, and consecutive quarterly losses raise questions about long-term viability. The Lifetime Guarantee is only valuable if loanDepot remains in business for your next refinance
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Important Mortgage Disclaimers
- Annual Percentage Rates (APRs), loan amounts, and terms displayed are estimates based on publicly available information and may vary based on your creditworthiness, income, and other factors. Actual rates, terms, and availability may differ from what is shown here.
- Checking your rate or pre-qualifying with a lender typically involves a soft credit inquiry that does not affect your credit score. However, submitting a formal application will result in a hard credit inquiry, which may temporarily lower your score.
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