Citron Research claims the lender's servicing business is undervalued Citron pegs the value of loanDepot’s $116 – 117.5 billion servicing book at $5.50 per share, using peer multiples from Mr. Cooper ($COOP). The report cites data from BTIG’s Mortgage Finance Roundup (Aug. 27, 2025), highlighting: * 418,000 customers in servicing. * Strong credit quality, with 79% of FICOs above 680. * 90% of servicing tied to GSE or Ginnie Mae loans, minimizing credit risk. “Servicing creates recurring fee income, and each refinance cycle turns those customers into new originations,” Citron wrote, stressing [loanDepot’s recapture rate of 70% in Q2 2025](https://nationalmortgageprofessional.com/news/loandepot-narrows-losses-q2-amid-rising-loan-volume-and-cost-controls) — more than double the industry average of 34% for conventional and 52% for government loans.

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Interesting. I guess they have some servicing business BUT it's apparently NOT profitable enough to put them in the Black, given that they are losing $$ and have negative EPS. Maybe the play here is for LDI to spin off its Servicing business? Why does LDI have negative EPS if they have a decent Servicing business? Don't forget that COOP has close to $1B in earnings, which it's bringing to the RKT deal.

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Why a LEAP? LDI can't scale like RKT or UWMC if Refi's start to fly, and they definitely can't complete with RKT price or all in one service. Nor are they in the servicing business like RKT and COOP. In short, this might fly short term with rates cut next week, like anything and everything mortgage related, or that news might already be priced into the stock price. I'm sticking with my $1m+ bet on RKT and COOP

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LoL. Just buy COOP or RKT instead, instead of money losing LDI RKT and UWMC can scale when rates drop, profitably.

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Thanks. That buy was part of a $1M GAIN on COOP. And I still haven't sold single share, yet.... LOL https://preview.redd.it/yhc2dcd999of1.jpeg?width=152&format=pjpg&auto=webp&s=0f43f8bef65c211a8766f1d227e57fa85da3a5be

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That works. Buy a good stock (with LEAPS in this case), and HODL.... Mini version of what I did with COOP/RKT, for a $1M gain. Congrats! Much better play than chasing the next Meme stock.

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You're doing good. 60%+ of my portfolio consists of COOP, because it's up 3x in the last two years. That's the way to BET to BUILD wealth. Then diversify to PRESERVE wealth.

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