Guild Holdings Company, the parent company of residential mortgage lender and servicer Guild Mortgage, reported a significant year-over-year increase in loan originations for the first quarter of 2025, with a strong focus on purchase mortgages.
Loan originations totaled $5.2 billion, up 35% from $3.8 billion for the first quarter of 2024. Purchase originations comprised 88% of total loan volume, compared to the industry average of 71%. Guild’s gain on sale margin for Q1 2025 was 376 basis points, up from 364 basis points in Q1 2024.
Guild’s servicing portfolio grew to $94.0 billion in unpaid principal balance, up from $86.3 billion the year before. Despite the positive indicators, the company reported a net loss of $23.9 million, primarily due to a $69.9 million valuation adjustment on its mortgage servicing rights (MSRs) amid declining interest rates.
The company reported adjusted net income of $21.6 million, up from $8.0 million in Q1 2024. Net revenue for the most recent quarter was $198.5 million, down from $231.8 million for the first quarter of 2024, in part due to the MSR valuation decline.
On an earnings call, Guild’s CEO Terry Schmidt emphasized the company's resilience and strategic focus. "We have built a model designed to perform in every market cycle," she said, adding that mortgage companies that “can be flexible and adjust in these conditions will be the winners."
“Our brand is stronger than it’s ever been in the areas we serve,” Schmidt contended. Guild Mortgage serves 49 states, excluding New York, and the District of Columbia. She underscored Guild's commitment to adaptability and maintaining a strong market presence, particularly in purchase-driven retail mortgages.
Guild's strategic initiatives include organic growth: The company has doubled its loan officer headcount since the end of 2020, building its capacity to serve a broader customer base. For originators and brokers, Guild’s focus on retail purchase and expanded LO hiring may create more opportunities in local markets.
In addition, Guild retained MSRs for 60% of loans sold in Q1 2025, reflecting its long-term investment in customer relationships.
Looking ahead, Guild anticipates maintaining gain on sale margins in the range of 330-340 basis points. The company remains cautiously optimistic about the housing market's gradual recovery and is exploring opportunities for strategic acquisitions to further expand its market share.
