Is loot broken on console?

I've been playing for 446 hrs since purchase..I even purchased for a friend to have allies while playing. I have noticed diminishing returns on the loot system. When I started playing by about 4hrs in with a toon, around the cemetery area I would find my first piece of Orange quality gear... Since the huntress dropped I have not found a single piece of loot better than white blue or yellow? Am I missing something or is the game broken?

Any input would help. Thanks.