Here's Why loanDepot Is Reducing Its Mortgage Banking Footprint
Mortgage banking stocks are about as out-of-favor as you can get right now. After feasting on easy refinance activity in 2020 and 2021, the industry has been battered by rising interest rates. Much of the refinance activity has simply disappeared, as there is little financial incentive for someone to replace a 3.5% mortgage with a 5.5% one.
Virtually all of the mortgage banking stocks have suffered in this environment, but one that has suffered the most is probably loanDepot (NYSE: LDI). It just announced a major reorganization of its business model.
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Source Fool.com
