Cherry Creek Mortgage has been acquired by Guild Mortgage, the company announced in a press release.
Cherry Creek will become its own division of Guild. Jeff May, who co-founded Cherry Creek in 1987, will lead the new division. The terms of the acquisition were not disclosed.
“We continue to look for potential new partners with strong local teams, a history of growth, and community commitments,” said Mary Ann McGarry, Guild CEO.
“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.”
Cherry Creek is a Colorado-based privately held lender with physical branches in 45 states.
May said that his company’s customer-centric approach to business aligns with Guild’s.
“This is a very strategic offensive move for us. Guild’s values, commitment to serving their associates, customers, and the industry are perfectly aligned with what we have built over the last 36 years,” he said.
“We believe the combined resources of both companies will make us a force in the marketplace and position our production teams to more readily compete and win for the long term in this challenging market.”
The announcement comes just days after Guild reported its first quarterly loss since going public. Despite this, leaders at Guild continue to prioritize expansion.
In an interview with HousingWire last year, McGarry said she was on the lookout for companies in good standing to add to Guild’s stable.
“When there’s a dislocation in the market, there’s tons of opportunities – to pick up the talent, to get new programs, to find a niche,” she said.
“We are going to be patient and thoughtful to take a good opportunity, aligning cultures and making sure the deal makes economic sense.”
Guild acquired Wisconsin-based Inlanta Mortgage last year after the company announced it would begin winding down due to dwindling homebuyer demand. The move boosted Guild to a fifth of market share in the state.
Last month, it acquired Legacy Mortgage, an independent lender based in New Mexico.
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