Guild Mortgage is seeing the benefit of its efforts to gain market share, more than doubling its origination volume and seeing a 32% increase in its net income in the second quarter. And after several acquisitions in recent years, it continues to look for
The mortgage and servicer's origination volume rose to $6.5 billion, up from $3.9 billion in the first quarter this year, marking a 69% increase. The majority of that volume (92%) was purchase business, the company said.
Net income grew to $37.6 million as of June 30, up from
"Our second quarter results demonstrate Guild's highly successful strategy to increase market share, by investing in people and technology, to drive growth in our originations and servicing portfolio," said Terry Schmidt, the CEO of Guild, in a written statement. "We are also pleased to produce strong adjusted net income of $30.7 million as we continued to ramp up and integrate the acquisition of Academy Mortgage."
Guild's servicing segment net income saw a 17% dip to $69.5 million compared to $83.9 million in the prior quarter. Its servicing portfolio unpaid principal balance grew to $89.1 billion, up 3% compared to $86.3 billion at the end of March.
The mortgage lender expects to see increased business opportunities from its servicing portfolio as "homeowners opt to refinance or purchase new properties, when housing market dynamics and interest rates stabilize," said David Neylan, president and chief operating officer at Guild, during the company's earnings call Thursday.
"We've identified a considerable portion of our loan portfolio able to benefit from new financing opportunities as rates decrease," said Neylan.
Another bright spot for the company has been its push to innovate its in-house technologies, Schmidt highlighted. Most recently, the lender and serviced launched an internal
"Ongoing technology investments, deep product offerings, extensive customer database, and unwavering commitment to local relationships through origination and servicing, positions the Guild platform to continue to drive organic growth as market conditions improve," the company's CEO added in her written statement.
Since GuildGPT's launch in June about 2,000 employees have tested it. The tool has helped answer more than 20,000 questions asked by team members, according to the company, a recent press release claims.
Guild's thirst to expand remains, with Schmidt highlighting that the company will "maintain our pursuit of selective acquisitions that align with our model and culture, as we seek to deliver meaningful growth and value for our shareholders over time."
In the past year or so, Guild Mortgage has been pushing to expand its market share nationwide, acquiring five mortgage lenders since 2022. The company has been able to make these acquisitions thanks to its servicing model, which it dubs as "the cornerstone of [its] success."
According to a headcount tally, Guild has 2,863 sponsored loan officers, the Nationwide Multistate Licensing System shows.
