loanDepot cites market volatility, lower margins in wider Q1 loss

loanDepot reported a wider first-quarter loss on May 5, saying volatile interest rates and market conditions hurt revenue and margins.

The company said net loss widened to $54.9 million from $32.8 million in the prior quarter. Revenue fell to $286.4 million from $310.3 million, while pull-through weighted gain-on-sale margin slipped to 2.71% from 3.24%.

Even so, lock volume rose 14% quarter over quarter to $8.27 billion, suggesting the company continued to generate new business despite the tougher pricing environment. loanDepot said the lower margins reflected a more volatile market and pressure on mortgage profitability.

The results underscore how sensitive mortgage lenders remain to rate swings. When rates are choppy, lenders can see more loan demand in some periods, but the economics of each loan can worsen quickly.

The company’s latest quarter was first released on May 5 and followed up by trade coverage on May 6. Investors will now look for signs that volume growth can offset margin pressure in coming quarters.