loanDepot a major non-bank lender has cut 4,8000 jobs in 2022 so far. According to a filing with the SEC, they plan to drop from 11,300 employees to 6,500 by the end of 2022.

“In 2020 and 2021, like other mortgage companies, we scaled our organization to meet the demands of unprecedented mortgage volumes, especially refinancing transactions,” Frank Martell, president and CEO, said in a statement. “After two years of record-breaking volumes, the market has contracted sharply and abruptly in 2022. We are taking decisive action to meet this challenge head on.”

The company has $1 billion in cash on hand which will allow it to weather further weakness in the home loan market due to the disappearance of the refinance customer.

Today the mortgage broker announced the closure of its wholesale lending division.

“We are exiting our wholesale channel consistent with our strategy of becoming a more purpose-driven organization with direct customer engagement throughout the entire lending process,” he said. “Our exit from wholesale will also enable us to direct resources to other origination channels, reduce operational complexities, and increase margins.”
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