Loan Volume Reached Record $7.16 Billion in Q3 Driven by $3.08 Billion in Refinances;
Customer Retention Rates Were 69.9% for Refis in the Quarter
SAN DIEGO – Guild Mortgage, one of the largest and most experienced independent mortgage lenders in the U.S., set records in lending and servicing during the first nine months of 2019, driven by a continued surge in refinance volume.
Total volume reached a record $15.78 billion for the nine months ended September 30, 2019, up 23.1% from $12.82 billion in the same period in 2018. Low rates continued to drive refinance business, which reached a record $4.95 billion for the first three quarters of the year, up 153.9% from $1.95 billion through the first three quarters of 2018. Purchase loans, which represented 73.2% of all Guild loans in the first nine months, reached a record $10.83 billion.
For the third quarter of 2019, Guild reported total loan volume of $7.16 billion, which was up 61.3% from $4.44 billion in the third quarter of 2018 and easily eclipsed the company’s previous record of $5.37 billion in the second quarter of this year. Refinances totaled a record $3.08 billion in the third quarter, up 408.7% from $605.1 million the same period last year, while purchase loans were $4.09 billion, up 6.5% from $3.84 billion, and also a record.
“Our commitment to personalized service helps more people find the right loan to purchase the home they want,” said Mary Ann McGarry, president and CEO of Guild Mortgage. “Whether we’re working with a current customer or a first-time homebuyer, we have the experienced team and loan options to serve the needs of any borrower in any market cycle, which resulted in record refinance and purchase loan volumes in Q3.”
Guild-to-Guild volume in the third quarter of 2019 was a record $2.14 billion, representing a refinance recapture rate of 69.9%, a purchase recapture rate of 23.1% and an overall recapture rate of 61.9%. The total was up more than 661% from the $281.1 million Guild-to-Guild volume in the third quarter of 2018, with recapture rates of 38.5% for refinance, 23.8% for purchase and 32.1% overall in the 2018 period.
Guild’s results were consistent with industry projections for the third quarter. According to the Mortgage Bankers Association’s September 2019 Mortgage Finance Forecast, total loan originations for the industry increased 32.4% to $605 billion in the quarter, up from $457 billion in the third quarter of 2018. Refinances were up 107.2% to $230 billion from $111 billion, while purchase loans gained 8.4% to $375 billion from $346 billion industry wide.
Guild again set records across multiple loan types during the quarter, including conventional, $4.65 billion, up 55.5% from $2.99 billion in the third quarter of 2018; FHA, $1.46 billion, up 50.9% from $968.2 million; and VA, $1.05 billion, up 118.7% from $480.3 million.
Servicing continued to climb to record levels in the third quarter of 2019, reaching $48.91 billion, up 9% from $44.87 billion in the third quarter last year. The average loan size in Guild’s servicing portfolio reached $208,136, up 0.7% from $206,589. The average size for new loans issued during the third quarter was $259,130 up 12.2% from $230,874 in 2018.
Guild experienced significant growth at the state level in the third quarter, particularly in its base in the West. Among the largest states served by Guild, the biggest gains in volume year-over-year included California, up 98.8% to $1.19 billion; Arizona, up 86.2% to $522.6 million; Nevada, up 84.4% to $674.7 million; Utah, up 80% to $206.1 million; and Washington, up 71.8% to $1.2 billion.
A top-10 national lender by purchase loan volume, Guild specializes in developing unique pilot programs and specialized products to help deliver the promise of home in every neighborhood and community it serves. Its loan professionals can serve the needs of any homebuyer, from helping first-time buyers achieve homeownership, often through government loan programs, to homebuyers looking to upgrade with a jumbo loan. Guild also specializes in helping active duty and retired military personnel to secure VA loans, with 100 percent financing and flexible qualifying standards. The company is consistently recognized for its impact in the communities it serves, commitment to customer service, strength in regulatory compliance and workplace culture.