Mortgage and loan giant LoanDepot disclosed on Monday that it is currently grappling with a cyberattack, and is striving to restore normal business operations in the wake of the incident.
Key Takeaway
LoanDepot, a prominent mortgage and loan company, is dealing with a suspected ransomware attack, prompting the shutdown of certain systems and the implementation of security measures to mitigate the impact of the incident.
Extent of the Cyberattack
LoanDepot, based in Irvine, California, has taken certain systems offline in response to the suspected ransomware attack. The company is actively working to assess the impact of the incident and minimize its effects.
Response to the Attack
The company confirmed the cyberattack in a filing with federal regulators, noting that the incident involved the encryption of data. As a precautionary measure, LoanDepot has shut down specific systems and is implementing security measures to safeguard its operations and bring systems back online.
Impact on Customers
LoanDepot, which boasts millions of customers, has experienced disruptions to portions of its website and customer portals. Users attempting to access the platform have encountered error messages, with some services being temporarily unavailable.
Industry Trends
This cyber incident at LoanDepot is the latest in a series of cyberattacks targeting the loan and mortgage industry. In recent months, several entities in this sector, including Fidelity National Financial and Mr. Cooper, have fallen victim to cyber threats, underscoring the growing cybersecurity challenges faced by the industry.
Regulatory Implications
The cyberattack comes amidst the rollout of new breach reporting rules, compelling companies to promptly notify regulators of cybersecurity incidents that could materially impact their business. LoanDepot has affirmed its commitment to evaluating the repercussions of the incident and its potential material impact on the company.
