Southeast, Texas, Southwest, Colorado Regions Lead Growth;
Western States Show Biggest Gains in Average Loan Size
SAN DIEGO – Guild Mortgage, one of the largest mortgage lenders in the U.S., had record overall loan volume of $11.7 billion through the nine months ended Sept. 30, 2017, up 1.4 percent from the $11.5 billion in the same period of 2016. Purchase loans reached $9.5 billion, up 20.5 percent from $7.9 billion for the nine months of 2016, while the refinance market dropped 39.9 percent to $2.2 billion in 2017 from $3.7 billion.
Third quarter comparisons reflected the shift in interest rates over the past year. Guild had its best quarter in history with $4.7 billion in total loans in the third quarter of 2016, led by $3.1 billion in purchase loans and a record $1.6 billion in refinanced loans. Purchase loans represented 65.2 percent of all loans in the 2016 quarter, with 34.7 percent in refinanced loans, the second highest level in Guild history, to 37.1 percent in the fourth quarter of 2016.
In the third quarter of 2017, total loan volume was $4.4 billion, off 7 percent from the record 2016 quarter. Purchase loans hit a new quarterly high of $3.6 billon in the 2017 quarter, up 17 percent from the 2016 period, representing 81.5 percent of all loans versus 18.5 percent for refinanced loans.
Mary Ann McGarry, president and CEO, said the regions and states exhibiting the fastest growth benefited from lower housing costs and better inventories, making qualifying for a loan easier than in more expensive areas.
“The Southeast region led with 26.8 percent growth and had the lowest average loan size of $174,507,” said McGarry. “Compare that with our California Coastal Region, with an average loan size of $282,725, or Northwest, close behind at $279,947. We are optimistic about future growth in all areas based on continued strengths in the regional economies and more millennials reaching the age when they are in a position to consider buying a home instead of renting. To meet this need, we are always searching for new options to help potential homebuyers, such as our 1 Percent Down conventional loan program.”
After the Southeast, the fastest growing regions for Guild during the first nine months of 2017 were: Texas, up 22.9 percent to $809 million, average loan size of $176,143; Southwest, up 11.2 percent to $1.5 billion, average loan size of $222,685; and Colorado, up 8.2 percent to $822.2 million, average loan size of $246,833. Hawaii had the highest average loan size at $415,222, down 1.9 percent from the previous year period. The average loan size for all Guild loans during the first three quarters of 2017 was $230,635, up 1 percent from $228,321 in the 2016 period.
The fastest growing states were: Texas, up 53.9 percent to $1.2 billion (includes the acquisition of AmeriPro of Austin in late 2016); Arizona, up 16.3 percent to $596.9 million; Nevada, up 9.3 percent to $949 million; South Carolina, up 6.5 percent, to $484.2 million; and Colorado, up 5.7 percent to $841.4 million.
Western states led the increases in average loan size for the first nine months of 2017 versus 2016. Washington, which had total loan volume increase just under 1 percent to $1.9 billion for the nine months, had the biggest jump in average loan size, up 12.8 percent to $278,275. It was followed by: Nevada, up 5.5 percent to $239,949; Texas, up 5 percent to $191,181; Oregon, up 3.3 percent to $274,738; and Arizona, up 2.9 percent to $186,765.
Guild continued to grow its servicing business during the third quarter of 2017, with $36.5 billion and 182,560 loans serviced as of Sept. 30, 2017, up 30.8 percent from $27.9 billion and 146,026 loans serviced at the end of the 2016 period.
A top-10 national lender by purchase loan volume, Guild offers first-time homebuyers a wide range of loan options and personalized service. Its loan professionals can serve the needs of any homebuyer, from helping first-time homebuyers achieve home ownership, often through government loan programs, to jumbo home loans. Guild also specializes in helping active duty and retired military personnel to secure VA loans, with 100-percent financing and flexible qualifying standards.
About Guild Mortgage
Founded in 1960 when the modern U.S. mortgage industry was just forming, Guild Mortgage Co. is a nationally recognized independent mortgage lender offering a wide range of residential mortgage products and local in-house processing, underwriting and funding. Its collegial and entrepreneurial culture enables it to deliver unsurpassed levels of customer service. Having been through every economic cycle, the company has grown 16-fold since 2008, and now has more than 3,900 employees operating from 250 branch and satellite offices in 25 states. Guild’s highly trained loan professionals are experienced in government-sponsored programs such as FHA, VA, USDA, low down payment assistance programs and other specialized loan programs. The company generated $15.9 billion in loan volume in 2016, as compared to $1 billion in 2008. In addition, Guild services more than 155,000 loans, which totaled $30 billion in 2016, and has correspondent banking relationships with credit unions and community banks in 47 states. (Equal Housing Lender- Company NMLS #3274).