Guild Mortgage Reports Records in Total Loan Volume, Purchase Loans and Servicing in 2019
Loan Volume Climbed to $21.71 Billion for the Year; Recapture Volume Was $1.72 billion
SAN DIEGO – Guild Mortgage, one of the largest independent mortgage lenders in the U.S., achieved record total loan volume and reported customer retention rates that were among the highest in the industry in 2019.Total volume reached a record $21.71 billion for the year ended December 31, 2019, up 32.3% from $16.41 billion in 2018. The refinance business, driven by continuing low rates, grew to a record $7.60 billion, up 208.2% from $2.46 billion in 2018. Purchase loans represented 65.0% of all Guild loans for the year and reached a record $14.11 billion.
The Guild servicing portfolio grew 8.2% to a record $49.43 billion in 2019, up from $45.70 billion at the end of 2018. Total units climbed to 237,260 in 2019, up 7.2% from 221,244 at the same time last year. The average loan size in Guild’s servicing portfolio reached $208,329 in 2019, up 0.9% from $206,540.
Guild continued to showcase its strength in customer retention in the fourth quarter of 2019. Recapture volume reached $1.72 billion, representing a refinance recapture rate of 60%, a purchase recapture rate of 22.6% and an overall recapture rate of 54.28%. The total was up 548% from the $265.5 million recapture volume in the fourth quarter of 2018.
Guild reported record total loan volume of $6.04 billion for the final quarter of the year, up 65.1% from $3.66 billion in the same period in 2018. Refinances totaled $2.70 billion in the fourth quarter, up 390.4% from $549.6 million the same period last year, while purchase loans were $3.35 billion, up 7.6% from $3.11 billion.
Mary Ann McGarry, Guild’s CEO, said the company’s growth was driven by a focus on bringing specialized mortgage programs to the market, building trust with customers and capitalizing on favorable market conditions.
“In 2019 we introduced a number of programs and services to improve the homebuying experience and better serve our loan officers and strategic partners,” McGarry said. “We helped a record number of people save money through refinancing their mortgage with competitive rates throughout the year. We are committed to serving the borrowers of the future and developing customers for life with new programs and tools to make the borrowing experience easier each year.”
Guild continued to experience strong growth in key states during the fourth quarter, particularly near its base in the West. Among the largest states served by Guild, the biggest gains in volume year-over-year included California, up 110.5% to $1.07 billion; Washington, up 72.3% to $984.7 million; Utah, up 81.1% to $186.9 million; Arizona, up 65.9% to $408.9 million and Nevada, up 63.6% to $530.8 million.
Guild introduced several new mortgage programs in 2019, including a refinancing option in partnership with Airbnb that considers short-term rental income as an acceptable source of qualifying income on refinance applications for owner-occupied primary residences. Guild’s refinancing option is available to all U.S. hosts who own their home, list their primary residence on Airbnb and are interested in refinancing their mortgage.
The company announced Homebuyer Protection, an innovative program designed to give customers added protection and peace of mind during the mortgage process. Homebuyer Protection combines three of Guild’s loan programs and services (Lock & Shop, Credit Approval Protection and Homebuyer Express with 17 Day Closing Guarantee), effectively allowing homebuyers to protect their rate, earnest money and closing date.