LoanDepot Cyberattack Exposes 16.6 Million Customers’ Data
The loanDepot Cyberattack has prompted the company to take swift action, including notifying affected individuals.
LoanDepot, Inc., a leading provider of home lending solutions, has informed its customers that an unauthorized third party accessed sensitive personal information from approximately 16.6 million individuals within its systems through a loanDepot cyberattack.
The loanDepot Cyberattack has prompted the company to take swift action, including notifying affected individuals and offering credit monitoring and identity protection services at no cost to them.
While the investigation is ongoing, loanDepot has been working tirelessly with external forensics and security experts to understand the extent of the breach and restore normal operations.
Company Leadership Addresses loanDepot Cyberattack
CEO Frank Martell expressed regret over the incident, acknowledging the increasingly frequent and sophisticated nature of cyberattacks in today's world.
“Unfortunately, we live in a world where these types of attacks are increasingly frequent and sophisticated, and our industry has not been spared. We sincerely regret any impact to our customers,” said loanDepot CEO Frank Martell in a media statement released by the officials.
He emphasized the company's dedication to resolving the situation and supporting customers throughout the process. loanDepot has made substantial progress in restoring its loan origination and loan servicing systems, including the MyloanDepot and Servicing customer portals.
Martell further stated, “The entire loanDepot team has worked tirelessly throughout this incident to support our customers, our partners, and each other. I am pleased by our progress in quickly bringing our systems back online and restoring normal business operations.”
Jeff Walsh, President of LDI Mortgage, echoed Martell's sentiments, highlighting the team's dedication to customers and expressing pride in overcoming the challenges. He emphasized the company's commitment to enabling customers nationwide to achieve their financial goals and dreams of homeownership.
“Our customers are at the center of everything we do,” said Jeff Walsh, President of LDI Mortgage. “I'm really proud of our team, and we're glad to be back to doing what we do best: enabling our customers across the country to achieve their financial goals and dreams of homeownership,” he added further.
loanDepot has set up a microsite at loandepot.cyberincidentupdate.com to keep customers, partners, and employees informed, providing additional operational updates as the situation evolves.
Industry Trends and Similar Incidents
The company, on January 8, had issued a statement publicly acknowledging the cyberattack and taking specific systems offline to address the situation promptly. It took 10 days for loanDepot to bring back crucial portals, including the Servicing customer portal, HELOC customer portal, MyloanDepot customer portal, and mellohome's website, albeit with some functionality limitations.
The recent cyberattack on loanDepot follows similar incidents in the mortgage industry. Fidelity National Financial (FNF) disclosed in an 8K filing with the Securities and Exchange Commission (SEC) that 1.3 million customers had their data exposed in a cyberattack. In a separate incident, Mr. Cooper, another major mortgage provider, reported a cyberattack affecting nearly 14 million individuals.
As the industry grapples with an increasing number of cyber threats, loanDepot remains committed to securing its systems and mitigating the impact on its customers. The ongoing investigations and collaborative efforts with cybersecurity experts aim to strengthen the company's defenses against future cyber threats.
