Guild Mortgage acquires Cherry Creek Mortgage

Retail lender Guild Mortgage introduced the acquisition of Cherry Creek Mortgage, a privately-held Colorado-based lender with 68 branches in 45 states.

Cherry Creek will change into its personal division of Guild, headed by co-founder Jeff Might, Guild mentioned on Monday. The phrases of the acquisition weren’t disclosed.

Established in 1987, Cherry Creek provides a variety of mortgage merchandise together with typical, FHA, VA USDA, USDA, reverse mortgages and residential renovation loans.

Cherry Creek brings its know-how with reverse mortgages to Guild, which represents a brand new alternative for Guild.

“We proceed to search for potential new companions with sturdy native groups, a historical past of progress and group commitments,” Mary Ann McGarry, CEO of Guild, mentioned in an announcement. 

Cherry Creek, a Colorado-headquartered retail lender, was among the many originators seeking to broaden over the summer season — it was hiring operation positions in Colorado and LOs in Nevada, Arizona, Colorado and California.

Cherry Creek originated $4.07 billion in 2022, a decline of about 44% from the earlier 12 months’s $7.27 billion, in line with mortgage information platform Modex. Of the whole origination quantity in 2022, buy mortgages accounted for 57% of the amount and refis consisted of 28%.

Cherry Creek has 299 mortgage mortgage officers, in line with the Nationwide Multistate Licensing System & Registry (NMLS).

Guild has been buying lenders to broaden in native markets in a purchase order mortgage-focused setting. 

In December, Guild acquired Wisconsin-based lender Inlanta Mortgage to extend its buy market share to fifth in Wisconsin. Guild added New-Mexico-headquartered Legacy Mortgage final month to have the second-largest buy mortgage share in Arizona, Colorado, Texas, and New Mexico, in line with the agency.

Executives had affirmed the lender’s plans on buying different firms in its newest earnings name.

“We imagine we are able to proceed to comprehend engaging progress by way of M&A, significantly as we anticipate ongoing dislocation out there,” Terry Schmidt, president of Guild, informed analysts this month. 

In 2022, greater than 80% of closed mortgage origination quantity got here from buy mortgages, the agency mentioned. Within the fourth quarter alone, 93% of Guild’s closed origination quantity was derived from buy enterprise.

On the again of a purchase order market-focused technique, Guild posted a internet earnings of $328 million in 2022 regardless of posting a lack of $15 million within the fourth quarter of the 12 months. Internet earnings additionally rose 16% from the earlier 12 months’s $283.8 million. 

Executives in the course of the earnings name hinted at extra acquisitions noting “there’s plenty of curiosity for lots of manufacturing firms to seek out out choices.”