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A Strategic Initiative to Recapture Market Share
loanDepot grew 4.14% over the past year to $19.9B. Meanwhile, the market tells a very different story.
Major retail lenders are experiencing solid growth. Broker shops continue their explosive trajectory:
Both retail and broker models can work. But loan officers are choosing the flexibility of the broker platform at unprecedented rates.
This proposal outlines a Broker Bridge Division—a hybrid model designed to convert broker growth into loanDepot profit while creating a pathway back to retail production.
The retail market shows a clear divide between top performers and those struggling to keep pace.
| Company | Current Volume | Prior Period | Growth |
|---|---|---|---|
| Rocket Mortgage | $128.3B | $114.7B | +11.85% |
| CrossCountry Mortgage | $56.9B | $49.9B | +14.02% |
| Guaranteed Rate | $33.9B | $30.6B | +10.89% |
| Guild Mortgage | $33.6B | $30.0B | +11.84% |
| CMG Mortgage | $30.7B | $26.1B | +17.88% |
| Company | Current Volume | Prior Period | Growth |
|---|---|---|---|
| Fairway Independent | $30.5B | $31.5B | -2.97% |
| Movement Mortgage | $26.0B | $28.2B | -7.63% |
| loanDepot | $19.9B | $19.1B | +4.14% |
Every major broker shop in this analysis shows double-digit growth.
| Company | Current Volume | Prior Period | Growth |
|---|---|---|---|
| Barrett Financial | $12.7B | $9.1B | +40.07% |
| Nexa Mortgage | $10.8B | $9.5B | +13.51% |
| West Capital | $10.5B | $5.9B | +76.31% |
| Edge Home Finance | $9.9B | $8.1B | +23.06% |
| C2 Financial | $6.9B | $5.6B | +23.00% |
| E Mortgage Capital | $5.7B | $5.0B | +15.05% |
| Loan Factory | $5.4B | $3.3B | +66.04% |
Average broker shop growth exceeds 35% annually. The range spans from 13.51% to 76.31%. loanDepot occupies an uncomfortable middle ground—not growing like top retail competitors, not capturing any of the broker market expansion.
Broker loan officers have access to multiple compensation structures that retail cannot match:
These represent two distinct income streams. A broker LO can choose the structure that works best for each transaction.
Broker LOs value working with 50+ wholesale lenders. They can shop rates in real time, match the right product to each borrower scenario, and win business that retail LOs must turn away.
The broker model has one significant drawback: Independent broker LOs pay their own health insurance. Current market rates run $1,500 to $2,000 per month for individual coverage. Annual expense: $18,000 to $24,000 out of pocket.
This is the pain point that makes the Broker Bridge compelling.
The Non-QM market currently represents $25 to $30 billion in annual origination volume with growth rates of 15-20% annually.
Why Retail LOs Struggle with Non-QM:
Why Broker LOs Excel at Non-QM:
A broker division with 2,400 LOs producing just 12% Non-QM volume would generate $2.7 billion annually in a product segment that retail loanDepot currently cannot touch.
The Broker Bridge Division operates as a separate unit within loanDepot. Loan officers function as independent brokers with access to wholesale lenders across the market.
Fixed Annual Costs:
Variable Costs: $50 per closed loan (manager bonuses)
Break-even: 786 loans per year = 66 loans per month = just 30 LOs averaging 2.2 loans/month. Break-even occurs within the first 60 days of operation.
| Metric | Year 1 | Year 2 | Year 3 | 3-Year Total |
|---|---|---|---|---|
| LOs at Year End | 725 | 1,925 | 2,400 | 2,400 |
| Total Loans Closed | 7,691 | 34,980 | 58,080 | 100,751 |
| Loan Volume | $2.75B | $12.49B | $20.73B | $35.97B |
| Revenue | $9.57M | $49.65M | $124.44M | $183.66M |
| Costs | $0.95M | $2.32M | $3.47M | $6.74M |
| Net Profit | $8.61M | $47.33M | $120.97M | $176.91M |
| ROI | 902% | 2,041% | 3,482% | — |
| Month | New LOs | Cumulative | Month | New LOs | Cumulative |
|---|---|---|---|---|---|
| 1 | 20 | 20 | 7 | 65 | 325 |
| 2 | 30 | 50 | 8 | 70 | 395 |
| 3 | 40 | 90 | 9 | 75 | 470 |
| 4 | 50 | 140 | 10 | 80 | 550 |
| 5 | 55 | 195 | 11 | 85 | 635 |
| 6 | 65 | 260 | 12 | 90 | 725 |
| Source | Calculation | Annual Total |
|---|---|---|
| Broker Fees | 63,360 loans × $750 | $47,520,000 |
| Retail Conversions (20%) | 12,672 loans × $4,463 | $56,556,336 |
| Servicing Rights NPV | 12,672 loans × $2,500 | $31,680,000 |
| Total Revenue | $135,756,336 |
loanDepot does not underwrite broker loans—the wholesale lender takes that responsibility. The wholesale lender manages compliance, bears repurchase risk, and handles QC on every broker transaction.
The entire fixed cost structure is $570,000 annually. If the division fails completely, the loss is capped at roughly $1.4 million in the first year. That is an acceptable risk for a $176.91 million opportunity.
| Feature | Pure Broker Shops | Top Retail Lenders | loanDepot Bridge |
|---|---|---|---|
| Wholesale Lender Access | 50+ lenders | None | 50+ lenders |
| Lender-Paid Comp | Up to 2.75% | N/A | Up to 2.75% |
| Retail Loan Option | None | Only option | Available |
| Consumer Brand | Limited | Strong | Established |
| Health Insurance | $1,500-2,000/mo individual | Day one coverage | Group rates @ 3 loans |
| Non-QM Capability | Strong | Limited | Strong |
| Income Streams | Two | One | Three |
Unique Value Proposition: The loanDepot Bridge Division offers what no competitor can match—broker flexibility with retail options, three income streams, national brand backing, and group health insurance access. No other platform combines all these elements.
The opportunity is clear. The risk is limited. The potential is substantial.
The market will continue evolving whether loanDepot participates or not. This proposal provides the blueprint. Execution starts with a decision.