Guild Mortgage Continues Record Growth In Lending and Servicing in First Half of 2016
First-Time Homebuyer Accelerator Initiative Keeps Purchase Loan Percentages High; Fastest-Growing Regions Include Southeast, Northwest and Southwest
– Guild Mortgage, one of the largest independent mortgage bankers in the U.S., continued its trend of record growth in the first half of 2016 with loan volume of $6.8 billion, up 2 percent from $6.7 billion in the same period of 2015.
The results build on growth in 2015, when loan volume reached $13.8 billion, up 86.1 percent from $7.4 billion in the 2014 period. Retail volume in its 234 branches reached $6.4 billion in the 2016 period, up 11 percent from $5.8 billion in the first half of 2015.
Guild continued its traditional strength in purchase loans, with volume reaching $4.8 billion in the first half of 2016, or 70.5 percent of all loans, up 8 percent from $4.4 billion and 66 percent in 2015. For 2015, Guild purchase loans totaled $9.8 billion, or 71.3 percent of its loan volume, up 62.6 percent from $6.1 billion and 81.6 percent of volume in 2014.
During the first half of 2016, Guild closed 30,257 loans, down 1 percent from 30,593 in the 2015 period. The average loan size reached $225,867, up 2.7 percent from $219,905 in 2015.
Mary Ann McGarry, president and CEO, praised the company’s Guild First-Time Homebuyer Accelerator Initiative for keeping purchase loan percentages high.
“With our Accelerator Initiative, we are educating millennials and other first-time homebuyers on their home buying options,” said McGarry. “Guild originators are experts at building bridges to homeownership by getting new buyers into loans they may not otherwise have found and matching their particular needs.”
David Battany, executive vice president of capital markets, said the depth and breadth of the Guild product line gives homebuyers more options than found through most lenders, where mortgages are only part of their business and the selection of loans is sometimes limited.
“Our loan professionals have the depth of knowledge and training to work with an unparalleled array of loans,” said Barry Horn, executive vice president of retail production. “Our people have years of experience working with FHA loans and helping active duty and retired military personnel to secure VA loans. We have found that options are most important to the growing number of first-time homebuyers from the millennial generation entering the housing market and Guild is ready.”
During the first half of 2016, the Southeast region (Georgia, Florida, Tennessee, Arkansas) ranked No. 1 in growth, with loan volume of $441 million, up 62 percent from $271.5 million in the 2015 period. The Northwest region, including Washington and Oregon, was second in rate of growth, up 19 percent to $2.1 billion from $1.7 billion. The Southwest region (Arizona, New Mexico and Nevada) grew 18 percent to $780.8 million from $669.8 million. Next was the Midwest region (Colorado and Nebraska), up 13 percent to $432 million in the first half of 2015, from $382.8 million in the 2015 period.
Guild continued to grow its servicing business, with $25.6 billion and 136,119 loans serviced as of June 30, 2016, up 35 percent from $18.9 billion and 106,282 in the 2015 period. This follows on Guild servicing volume reaching $22.3 billion in 2015, up 34 percent from $16.6 billion in 2014. It serviced 121,926 loans in 2015, up 28 percent from 94,888 loans serviced in 2014.
Guild offers a wide range of residential mortgage products, with in-house underwriting and funding, which provide consistency and speed throughout the loan process. Its loan professionals can serve the needs of any homebuyer, from helping first-time homebuyers achieve their dream of home ownership, often through government loan programs, to providing jumbo home loans. Guild also specializes in helping active duty and retired military personnel to secure VA loans, which provide 100 percent financing and flexible qualifying standards.