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Guild Mortgage Expands Reverse Division Through Acquisition of Cherry Creek

Guild Mortgage has announced the addition of 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.

Through the acquisition of Cherry Creek, Guild Mortgage will integrate reverse mortgages into its traditional mortgage platform. The division will use Guild’s existing nationwide retail team in nearly 300 branches to expand reverse mortgage offerings. The company 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.”

For the trailing 12 months ended February, Cherry Creek Mortgage was the nation's 10th most active originator of Home Equity Conversion Mortgages (HECMs), 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 Mortgage President Terry Schmidt. “This new combination of resources enables us to expand our business to meet a growing market need.”

HECMs are federally ensured by the Federal Housing Administration (FHA), a branch of the U.S. Department of Housing and Urban Development (HUD), and HECMs account for nearly all reverse mortgages made today in the U.S., with an average of 50,000 loans issued annually.

Just last week, Guild Mortgage acquired Cherry Creek, a company co-founded by Jeff May in Greenwood Village, Colorado in 1987. He led company growth over the past 36 years, earning recognition as one of the fastest growing private mortgage companies in the U.S., with a strong retail presence. Cherry Creek now has 68 branches in 45 states and will become its own division of Guild, headed by May. With the acquisition, Guild now has more than 300 branches and 4,000 employees in 49 states.

“We continue to look for potential new partners with strong local teams, a history of growth and community commitments,” said Mary Ann McGarry, Guild Mortgage’s CEO. “Cherry Creek has grown steadily over the years and shown a dedication to giving back that parallels ours, with an executive team and loan officers who are active in every market. Guild has a longstanding admiration for Cherry Creek’s approach to business and its accomplishments and we feel confident our two companies will be able to take advantage of our synergies in each market and do even more for our customers, together.”

About Author: Eric C. Peck

Eric C. Peck has 20-plus years’ experience covering the mortgage industry, he most recently served as Editor-in-Chief for The Mortgage Press and National Mortgage Professional Magazine. Peck graduated from the New York Institute of Technology where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career with Videography Magazine before landing in the mortgage space. Peck has edited three published books and has served as Copy Editor for Entrepreneur.com.

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