Home Agents Realtors Guild earnings present extra reverse mortgage exercise after Cherry Creek acquisition

Guild earnings present extra reverse mortgage exercise after Cherry Creek acquisition


Guild Mortgage launched its fourth-quarter and full yr 2023 earnings report this week, displaying that it narrowed its concentrate on buy originations and elevated its market share on the ahead lending aspect, but it surely nonetheless sustained a loss.

After its acquisition final yr of Cherry Creek Mortgage, Guild elevated its involvement within the reverse mortgage trade as a consequence of Cherry Creek’s well-developed reverse lending equipment. Within the new earnings report, the corporate now lists reverse mortgages it holds for funding, which totaled $315.9 million, representing loans it has elected to not promote on the secondary market.

Guild’s in-house retail reverse mortgage originations reached $49.8 million in quantity in 2023, whereas its wholesale reverse origination quantity was $36.8 million for the yr.

The corporate additionally reported an $8.2 million acquire on the reverse mortgages it’s holding for funding, in addition to earnings associated to Residence Fairness Conversion Mortgage (HECM)-backed Securities (HMBS), in accordance with the earnings report.

By way of its Cherry Creek acquisition, Guild turned a high 10 reverse mortgage lender in 2023, in accordance with a tabulation by Reverse Market Perception (RMI). The 2 corporations every had a excessive sufficient quantity final yr to successfully earn two separate slots on RMI’s leaderboard, holding the No. 8 and No. 9 positions.

Guild might transfer up additional in 2024, contemplating that the sixth largest lender of 2023 — Austin-based Open Mortgageintroduced its exit from the reverse mortgage enterprise late final yr as a consequence of decrease origination volumes mixed with decrease pull-through charges, in accordance with CEO Scott Gordon.

When combining the uncooked mortgage quantity of each Cherry Creek and Guild based mostly on RMI’s 2023 high 10 leaderboard, the corporate produced 1,136 HECM endorsements in 2023. If that determine was credited solely to Guild, then the corporate would have emerged because the sixth largest lender within the trade, simply behind Fairway Impartial Mortgage Corp.

Guild additionally ended 2023 because the sixth largest HMBS issuer within the trade, in accordance with a report from New View Advisors based mostly on public Ginnie Mae knowledge and proprietary personal sources.

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