loanDepot (NYSE:LDI) shares jumped 32% on Monday, building on last week’s gains after Citron Research released a positive report emphasizing the value of the mortgage lender’s servicing segment.
In its analysis, Citron noted that “LDI’s loan servicing portfolio alone is worth approximately $5.50 per share based on peer valuations,” roughly 2.5 times the company’s stock price prior to the rally. The firm compared loanDepot’s servicing operations to rivals like Mr. Cooper, applying similar valuation multiples to LDI’s $116–117.5 billion in unpaid principal across roughly 418,000 customers.
The report also stressed LDI’s strong credit quality, pointing out that 79% of loans carry FICO scores above 680, with 90% of the servicing portfolio backed by government agencies. Citron highlighted the company’s high refinance recapture rate, which reached 70% in Q2 2025, well above the industry average of 34% for conventional loans and 52% for government loans.
Citron, which had previously made a successful call on Rocket Mortgage (NYSE:RKT) in May, suggested that loanDepot could benefit from declining mortgage rates, currently at an 11-month low. Including LDI’s origination platform, technology, and fee-generating businesses, Citron estimates the total potential value at $6–6.75 per share.
The research firm’s bullish outlook aligns with expectations that falling interest rates may spur refinancing activity, with loanDepot positioned to benefit due to its strong customer retention.
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