Guild Holdings (GHLD) Expands Reverse Mortgage Division
Guild Mortgage (GHLD), a growth-oriented mortgage lending company originating and servicing residential loans since 1960, added an experienced reverse mortgage leadership team to expand its reverse mortgage division through its recent acquisition of Cherry Creek Mortgage.
Based in Colorado, Cherry Creek is a privately held top 10 reverse mortgage lender, as ranked by Reverse Mortgage Insight.
Guild will integrate reverse mortgages into its traditional mortgage platform. The division will use Guild’s large existing retail team in some 300 branches throughout the U.S. to expand reverse mortgage offerings to more borrowers nationwide. It will offer turnkey wholesale and correspondent solutions to other lenders wanting to enter the reverse mortgage space.
“The combination of proprietary technology and the broad and established retail network gives Guild the opportunity to advance as a leading retail, wholesale and closed loan purchaser of reverse mortgages,” said Bruce Barnes, managing director of reverse mortgages for Guild Mortgage, who joined the company from Cherry Creek. “We believe having the ability to securitize and service the reverse mortgage product will continue to strengthen our offerings and help us to serve more borrowers nationwide.”
Cherry Creek has long been a leading player in the reverse mortgage business. For the trailing 12 months ended February, it was the nation’s 10th most active originator of Home Equity Conversion Mortgages (HECM), according to Reverse Mortgage Insight. For 2023, it ranks eighth among program participants to date.
According to the Urban Institute, the number of Americans ages 65 and older will more than double over the next 40 years, reaching 80 million in 2040. The number of adults ages 85 and older will nearly quadruple between 2000 and 2040.
“The acquisition of Cherry Creek Mortgage and its reverse mortgage division continues to align with our customer for life strategy,” said Guild president Terry Schmidt. “This new combination of resources enables us to expand our business to meet a growing market need.”
A reverse mortgage loan, commonly known as a home equity conversion mortgage (HECM), enables the borrower to access equity in their property and use it to supplement retirement income. HECMs are federally ensured by the Federal Housing Administration (FHA), a branch of the U.S. Department of Housing and Urban Development…
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