Randian urges loanDepot to consider sale, reassess leadership

Retail activist investment firm Randian Capital is urging loanDepot’s board of directors to launch a formal review of strategic alternatives, including a potential sale, amid falling share prices and ongoing losses.

In an open letter to the board on Wednesday, Randian and its affiliates said they have economic exposure to more than 250,000 shares of loanDepot through common stock and options. The stock has been in free fall since the company went public in February 2021 at $14 per share and recently traded around $1.12 — a decline of more than 90% based on Tuesday’s closing price.

A spokesperson said loanDepot had no comment on the letter.

The push comes as loanDepot continues to struggle with profitability in a difficult mortgage market. In the first quarter of 2026, the Irvine, Calif.-based lender posted a net loss of $54.9 million, wider than the $32.8 million loss in the fourth quarter of 2025 and the $40.7 million loss a year earlier.

In its letter, Randian said macroeconomic headwinds alone do not explain loanDepot’s “prolonged underperformance,” arguing that peers have adjusted cost structures and strategies to the higher-rate, lower-volume environment.

“loanDepot has yet to demonstrate a sustainable path to restoring shareholder value,” the investor wrote.

Scale may be a “competitive disadvantage”

Randian also pointed to loanDepot’s relative scale, saying it is becoming a “competitive disadvantage” as the mortgage industry consolidates through mergers, servicing sales and exits from origination. “This can be exacerbated if reduced origination volumes persist longer than anticipated,” it added.

loanDepot originated $7.7 billion in loans during the quarter, down 5% from the fourth quarter but up from $5.2 billion a year earlier. The company’s pull-through weighted gain-on-sale margin declined to 2.71% from 3.24% in the fourth quarter of 2025. Management cited market volatility, higher rates and a shift toward lower-margin conventional loans as key factors.

loanDepot’s leadership has framed 2025 and 2026 as a multiquarter rebuild. Founder and CEO Anthony Hsieh, who returned to the chief executive role, has emphasized digital transformation, expansion of the wholesale channel the company reentered in early 2026, increasing loan officer headcount and applying automation across origination and servicing.

Hsieh has said the company is gaining market share and investing in long-term initiatives, including a partnership with Figure Technology Solutions that is expected to lower production costs, improve the customer experience and speed up loan closings.

Randian said strategic acquirers could unlock value not reflected in the current share price, particularly through cost and operational synergies.

Randian highlighted loanDepot’s mortgage servicing rights portfolio — $123 billion as of the first quarter, the 20th largest owned MSR portfolio in the country, according to Inside Mortgage Finance — as a key asset that might command a premium valuation in a transaction.

It cited the recent Mr. Cooper Group deal as evidence that strategic buyers remain willing to pay meaningful premiums for what they perceive as high-quality servicing and production platforms. In November, Rocket Companies completed its acquisition of Mr. Cooper for $14.2 billion, paying 51% more than the valuation initially announced.

Randian also pressed the board to reassess whether the current leadership structure is “best positioned to maximize shareholder value,” saying the board should be open to changes if needed to ensure the company’s needs receive sufficient time and attention from management.

“A successful sale of the company may be the best way for shareholders to finally realize fair value, and Mr. Hsieh to free up his time for the open water,” the letter states. “After years of significant value destruction, the Board owes shareholders a clear plan to maximize shareholder value, whatever path forward it ultimately chooses.”

This article was written by Flávia Furlan Nunes and generated with the assistance of HousingWire Automation, then reviewed by a HousingWire editor before publication.