Lake Forest, California-based LoanDepot, a nonbank holding company selling mortgage and non-mortgage lending products, has announced a major initiative named “Vision 2025” to save between $375 million and $400 million annualized, including headcount reductions, process optimizations, real estate consolidation and reduction in marketing and third-party spending.
The reduction in force to better align personnel with market demand will eliminate approximately 4,800 employees by the end of 2022.
According to president and CEO, Frank Martell, “In 2020 and 2021, like other mortgage companies, we scaled our organization to meet the demands of unprecedented mortgage volumes, especially refinancing transactions. 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.
"We anticipate continued challenging market conditions, with mortgage originations projected to decline by roughly half in 2022 from 2021, including an accelerated decline in the second half of 2022, followed by a further decline in 202.
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