Guild Mortgage Reports Record Loan Volume in Second Quarter, First Half of 2020
Total Volume Reached $14.60 Billion for First Half;
Purchase Business Remained Strong Through Booming Refi Market
SAN DIEGO – Guild Mortgage, which is celebrating its 60th year in the mortgage industry, achieved record total loan volume during the second quarter and first half of 2020, with refinances, purchase loans and customer retention fueling its growth.Total volume through June 30, 2020 was a record $14.60 billion, up 69.5% from $8.61 billion in the first half of 2019. Refinances, which were driven by record low mortgage rates, reached $8.03 billion for the first half, up 326.4% from $1.88 billion in the first six months of 2019. Guild also reported strong results in its purchase business, which reached $6.58 billion and represented 49.8% of all loans through the second quarter.
Guild’s customer retention rates continued to climb in the first half. Recapture volume reached $4.84 billion, representing a refinance recapture rate of 63.5%, a purchase recapture rate of 24.7% and an overall recapture rate of 58.9%. That figure was up 325.4% from the $1.14 billion recapture volume in the first half of 2019.
The first half saw continued growth in servicing, with Guild’s portfolio reaching a record $52.80 billion. That figure is up 11% from $47.40 billion in the first half of 2019. Total units climbed to 248,844, up 9% from 2019, and average loan size grew to $212,133, up 3%.
Guild’s record first half came despite market volatility and record unemployment brought on by the COVID-19 pandemic in the second quarter.
“The second quarter brought challenges we’ve never seen before. Fortunately, we were prepared to transition to working from home and a new model for serving our customers since we had been investing in new technology and digital processes for some time,” said Mary Ann McGarry, Guild’s CEO. “Our teams were up to the challenge and everyone has worked extremely hard these last few months. We’ve been able to offer our customers more digital closing options, focus on customer retention and keep more people in their homes.”
To help ensure the safety of its customers, partners and employees, Guild announced a partnership with eOriginal in April that allowed borrowers to review and sign an eNote remotely as part of the loan closing process. The move gave Guild the ability to execute fully digital mortgages; it closed nearly 2,900 loans using its secure eClose solution in the first half of the year, including five completely digital transactions, compared to just 42 loans closed through eClose in 2019.
Guild reported record total loan volume of $8.83 billion for the second quarter of 2020, up 64% from $5.37 billion in the same period in 2019. Refinances totaled $5.13 billion in the second quarter, up 294.5% from $1.30 billion in Q2 of 2019, while purchase loans were $3.70 billion.
Recapture volume reached $3.04 billion in the second quarter with an overall recapture rate of 59.3%. Guild reported a refinance recapture rate of 63.6% and a purchase recapture rate of 23.9% for the quarter.
At the state level, year-over-year loan volume was up in several key states, including Missouri, up 95% to $567.6 million; South Carolina, up 95% to $337.0 million; California, up 87% to $1.58 billion; Oregon, up 83% to $907.9 million; and Colorado, up 73% to $539.7 million.
A leading national lender by purchase loan volume, Guild has developed innovative pilot programs and specialized products to help deliver the promise of home in every neighborhood and community it serves for 60 years. 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% 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.