Guild Holdings Co. Reports Strong Origination Growth Amidst Challenges

Guild Holdings Co. ( (GHLD) ) has released its Q3 earnings. Here is a breakdown of the information Guild Holdings Co. presented to its investors.

Guild Holdings Company, a growth-oriented mortgage firm based in San Diego, specializes in providing residential mortgage products across the United States, leveraging a relationship-based approach to fulfill its commitment to homeownership.

In its latest earnings report for the third quarter of 2024, Guild Holdings Company reported a net revenue of $159.3 million and a net loss of $66.9 million. Despite these figures, the company highlighted a 6% increase in total originations from the previous quarter, reaching $6.9 billion, showcasing its ability to enhance market share through strategic acquisitions and organic growth.

Key financial metrics revealed that the company achieved an adjusted net income of $31.7 million, reflecting a 3% increase from the previous quarter. The gain on sale margin on originations improved to 333 basis points. Guild’s servicing portfolio’s unpaid principal balance also grew by 3% from the previous quarter, reaching $91.5 billion. The company’s focus on purchase originations was evident, as they accounted for 88% of the total loan volume, surpassing the industry average.

However, the company faced challenges with a significant valuation adjustment loss on its mortgage servicing rights, contributing to the overall net loss. Despite this, the origination segment turned profitable with a net income of $6.4 million, indicating Guild’s resilience and adaptability in a fluctuating market.

Looking forward, Guild Holdings is optimistic about its growth trajectory, driven by its expanded origination network and balanced business model. The company remains committed to strengthening its market position and delivering long-term shareholder value by staying disciplined amid varying macroeconomic conditions.