<strong>Mortgage Giant LoanDepot Faces Cyberattack, Working to Restore Operations</strong>
The company is securing its operations and assessing the impact of the attack, according to regulatory filings.
Loan and mortgage giant LoanDepot has announced that it is facing a cyberattack, causing certain systems to be taken offline. The company, based in Irvine, California, has stated that it is diligently working to restore normal business operations as quickly as possible.
The incident was confirmed in a brief statement on the company’s cybersecurity incident page. LoanDepot has also filed a statement with federal regulators, claiming that the attack involved the encryption of data, suggesting a ransomware attack.
“In response, the company shut down certain systems and continues to implement measures to secure its business operations, bring systems back online, and respond to the incident,” the regulatory filing reads.
When contacted for further comment, a LoanDepot spokesperson declined to provide details or confirm if the hackers had demanded a ransom.
According to LoanDepot’s website, the company assists over 27,000 customers each month. However, portions of the site, including customer portals, are currently experiencing disruptions. An error message on the login page advises users that there may be a temporary delay in viewing payment history due to a cyber incident. Those wishing to make payments are advised to use the company’s contact center.
This is just the latest in a string of cyberattacks targeting the loan and mortgage industry in recent months. Fidelity National Financial, one of the largest insurance providers in the United States, was knocked offline for over a week due to a ransomware attack in November. And in December, mortgage and loan company Mr. Cooper revealed that hackers had stolen personal data for over 14 million customers in an earlier attack.
In addition to the initial costs to pay for credit monitoring of affected customers, Mr. Cooper estimated that the attack would result in at least $25 million in additional expenses. This is in line with new breach reporting requirements that went into effect in December, which mandate companies to disclose any cyber incidents that could have a “material” impact on their businesses.
For LoanDepot, the company has stated that it will continue to assess the impact of the incident and determine if there will be a material effect on the business.
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