San Diego-based Guild Mortgage has acquired Inlanta Mortgage, which earlier this week sent a notification to Wisconsin officials regarding the closure of its Pewaukee office.
Terms of the acquisition were not disclosed.
"In joining Guild, we can offer our Midwest borrowers a broader array of loan options and access to new digital and customer relationship tools to improve every step in the lending experience, including servicing, a Guild strength," said Inlanta founder John Knowlton in a release. "Our combined resources and customer service cultures will drive future growth throughout the region."
On Nov. 29, Inlanta sent a letter to the Wisconsin Department of Workforce Development disclosing
The closure is over "unforeseeable business conditions" brought on by the dramatic decline in mortgage volume, Inlanta President and CEO Paul Buege wrote. The layoffs are contingent upon the finalization of its acquisition by an unnamed third-party purchaser, he wrote; that buyer turned out to be Guild.
"As this action has been caused by unforeseeable business conditions, this notice has been provided compliant with WARN Act obligations at the earliest possible opportunity," wrote Buege.
The employees aren't represented by a labor union nor collective bargaining agreement, and no bumping rights exist, the notice said. Underwriters, loan officers, loan processors and marketing staff will be laid off Dec. 2, according to the notice, and staff will be terminated periodically until executives and accountants depart in late March.
A shutdown was unexpected as
"The relationship lenders like ours that have always been in the purchase side, while they're down, they're fine, and they're opportunistic," Buege said in the interview. "We have to respect everything that's going on that's not so good but all of our focus is on the future, let's keep growing."
But Guild, which became
During its third quarter earnings call, CEO Mary Ann McGarry said Guild's phone has been ringing "quite a lot" regarding
"We think it's a great opportunity right now and think it'll even get stronger in the first quarter of 2023," she said, when asked about acquisition prospects and how selective the company will be. "In today's environment, of course the cash flows are going to be much thinner. And so I would say…we're being a little bit more cautious on pricing."
This deal is part of Guild's plan to grow both in existing markets and by entering new ones with selective acquisitions, McGarry said in the release.
"Inlanta is a natural fit because of its almost 30-year history, strong management team, employee-oriented culture and dedication to customer service," McGarry said. "Together we will use our combined strengths to drive further growth throughout the Midwest."
Inlanta is Guild's eighth acquisition since 2008, the most recent being
Inlanta is just the latest in a growing number of companies exiting all or part of the mortgage business, including
