One of the largest nonbank mortgage lenders in the country is loanDepot, typically landing on the top-10 list overall year after year.
In fact, they’ve even cracked the top five in some years as well, so they’re certainly a big time player in the mortgage world.
At one time, they were even the subject of speculation that they’d be acquired by mega retailer Amazon in its effort to enter the mortgage business.
Let’s get some history on loanDepot and determine if they’re a good fit for your home loan needs.
loanDepot Launched in 2010
- Direct mortgage lender based in Southern California
- Offers industry’s first end-to-end digital mortgage
- Ranked 2nd largest nonbank lender and a top-10 retail mortgage lender
- 5th largest VA lender
- Over 200 retail branches nationwide and growing
Despite being a very young company, the Foothill Ranch, CA-based direct lender loanDepot has funded more than $200 billion in consumer loans by just their 10th anniversary.
They are led by industry veteran Anthony Hsieh, their CEO and chairman who previously worked at LoansDirect.com, E*TRADE Mortgage, and LendingTree.
The company refers to themselves as the nation’s fifth largest retail mortgage originator, and second largest nonbank consumer lender in the country (Quicken Loans is first).
They employ some 6,400 team members, including 2,000+ licensed loan officers, across 200+ branch locations nationwide.
In 2015, loanDepot began offering personal loans as well, which do not rely on collateral such as real estate.
In recent years, they’ve also launched several joint ventures with home builders and real estate brokerages to expand their purchase business.
They also partnered with iBuyer OfferPad to create OfferPad Home Loans in late 2017.
How to Apply for a Mortgage at loanDepot
- You can apply online via their website
- You can visit one of their many retail branches for a face-to-face meeting
- Or you can call them directly and deal with someone over the phone
- They also have a wholesale lending division that works with brokers
In terms of applying for a loan, you can visit one of their 150+ branches nationwide, or call a representative at a branch near you. Some folks may still prefer a face-to-face sit down.
Their website features a search by branch or by loan officer if you’re looking for some place or someone specific, similar to the process over at New American Funding.
You can also start the process online at their website by hitting the “apply now” button. It will ask you if you’re currently working with anybody at loanDepot to ensure you are connected to the right person.
They also have a major wholesale division available in 46 states and the District of Columbia, meaning it’s possible to get a mortgage from loanDepot via a mortgage broker as well.
loanDepot Is Big on Technology
- Company employs their proprietary mello smartloan technology
- Uses data verification to digitally connect income, employment, and asset information
- Fully digital experience from application through closing
- Can shave 17 days off loan process and get you to clear-to-close in 8 days
In early 2019, loanDepot released its mello smartloan technology, which it bills as “the smarter way to mortgage.”
Instead of having to gather lots of financial paperwork and upload it to the lender’s website, mello allows you to digitally connect income, employment, and asset information.
This makes it both fast and secure— and once connected, their proprietary loan engines will determine the best loan options available, similar to the tech over at Rocket Mortgage.
You can also lean on their “expert loan consultants” if you need assistance in making a choice.
While the digital mortgage and data verification isn’t entirely novel or unique to loanDepot, they say mello smartloan is the “first-of-its-kind end-to-end digital home loan.”
That’s because it’s a fully digital experience from application through closing, not just part of the way.
For example, it comes with mello smartdecision, which instantly determines if you can qualify for an appraisal waiver, just minutes after submitting your online application.
Altogether, they believe mello smartloan can shave up to 17 days off the closing process and get you cleared to close in as little as eight days. That’s pretty fast.
What Does loanDepot Offer?
- Fixed-rate mortgages: 30-year, 20-year, 15-year, 10-year
- Adjustable-rate mortgages: 3/1, 5/1, 7/1 and 10/1 ARMs
- Jumbo loans: Borrow up to $2 million
- Government loans: FHA and VA loans
- Home equity loans: up to 90% of home value
Like most large mortgage lenders, they offer home refinance loans, home purchase loans, and home equity loans.
That includes both rate and term refinances and cash out refinances, the latter useful if you want to tap equity and get a new interest rate on your mortgage.
They offer both conventional and government loans, including FHA loans and VA loans, but notably absent are USDA home loans.
Additionally, you can get a home equity loan or a renovation loan (FHA 203k loan).
And as noted, they also offer personal loans, which are funded by Cross River Bank, an FDIC-insured New Jersey commercial bank.
With regard to loan type, they offer all the usual stuff like fixed-rate mortgages and ARMs, in common varieties.
loanDepot Lifetime Guarantee
- Only pay lender fees the first time you get a mortgage with loanDepot
- They waive the fees when you refinance your original home loan
- And reimburse the home appraisal fee as well
- Must apply directly with loanDepot to qualify
If you get home loan financing from loanDepot once, you won’t have to pay lender fees if you use them again, for life.
With the loanDepot Lifetime Guarantee, they waive lender fees and reimburse your home appraisal fee when you refinance your existing loan with loanDepot in the future.
They say the average homeowner will refinance their mortgage every seven years, which they break down as four times over the span of a 30-year mortgage, and twice over a 15-year mortgage.
The guarantee doesn’t apply to loans obtained to purchase a new property, home equity loans, renovation loans, bond loan programs, down payment assistance programs, or personal loans.
Additionally, the guarantee only works if you submit your application directly to loanDepot (no wholesale or third-party applying such as through LendingTree).
Finally, for guarantees issued on/after January 1st, 2019, you must wait 12 calendar months from the date issued.
loanDepot Mortgage Rates
Unfortunately, loanDepot does not openly advertise their mortgage rates like some other mortgage lenders.
This makes it very difficult to know where they stand price-wise relative to other mortgage companies.
Additionally, they don’t mention any of their lender fees on their website, further complicating the whole shopping around process.
However, mortgage rate quotes are available by phone or online if you fill out an application.
In terms of loan servicing, loanDepot says your mortgage will either be transferred to their permanent New Jersey servicing center or a new loan servicer.
loanDepot Pros and Cons
The Good
- Tons of digital technology to make loan closings fast
- Waives lender fees on subsequent refinance transactions
- Has retail branches if you prefer to meet in person
- Licensed in all 50 states and DC
- ‘A’ rating with the Better Business Bureau
- 4/5 stars on both BBB and Trustpilot based on customer reviews
- Automatically entered into nextX Sweepstakes when you close a loan with them in 2020
The Potential Bad
- Don’t let you view mortgage rates without calling them or filling out a form
- Don’t offer USDA loans
- Doesn’t publish lender fees (unclear if high or low)
- High closing costs seem to be a common complaint among reviews
([photo: Brad Montgomery)
