TheMReport

TH E M R EP O RT | 11 TAKE 5 MDWELL and one of the biggest investments most people will make. We view each of our customers as unique. We need to help them every step of the way. M // You have been in the mortgage business for more than three decades. How has the industry changed during this time? MCGARRY // While many things have changed in terms of technology and the tools we have to conduct business, the funda - mental principles of our business remain the same. Relationships are still important and always will be. How you do business with people depends on meet - ing individual preferences and expectations. We can now give customers the option to review and sign most of their loan documents electronically, which can make the experience more efficient and convenient. We have ways of educating homebuyers at each stage of the customer journey, but to win customers for life, we believe we have to follow up with a phone call or meet face-to- face as part of the closing process. This offers an opportunity to make that connection and explain the next phase of the journey to every new homeowner. Loan offi - cers should think of themselves as trusted advisers long after close. This means making sure their customers have what they need throughout the life of the loan, even when things change, no matter where life takes them. We have more ways to com - municate with our homebuyers, faster and more efficiently than ever before, and more ways to close a loan. However, we're still in a business where customer service, trust, and personal rela- tionships are the key to long-term success. M // As a company that has grown through acquisitions, what would be your advice to potential buyers and sellers of mortgage companies that are looking at consolidation? MCGARRY // Since 2010, Guild has grown four-fold, expanding from our base in the West to new markets in the Southwest, Southeast, South, and Midwest. We have completed six successful acquisitions, so that has been a part of our growth. More than a decade ago, we launched our strategic plan to expand through acquisitions and it considers a number of factors in evaluating other lenders. We've found that the biggest factors in a mutually beneficial partnership are ensuring a true cultural fit, strong leadership in the existing firm, and maintaining an entrepreneurial spirit. Aligning culture and core values is the most important test. When evaluating a potential deal, we always look at culture first. It's important to look at synergies of a potential consolidation to ensure it's a win-win and both parties benefit. If the people and core values don't mesh, the chances of a successful partnership are low. We've also found that fostering an entrepreneurial culture and empowering people to be suc - cessful serves both sides well. We value strong leadership teams that have developed a loyal, produc- tive sales force. As new partners, these leaders have an opportunity to join and strengthen our execu- tive team and contribute to our continued growth. They maintain their own personalities and iden- tities while thriving under the Guild umbrella. The magic for- mula: one plus one equals three in any successful acquisition. "It's important to look at synergies of a potential consolidation to ensure it's a win-win and both parties benefit. If the people and core values don't mesh, the chances of a successful partnership are low." First-Time's the Charm With three of the six best markets for first-time buyers located in the Sunshine State, we take a look at where this group of homebuyers should be focusing their attention. A s mortgage rates remain steady and inventory increases, the current housing market is offering more incentive for first-time buyers to enter the fray. In fact, 2019 is the first time that housing inventory has increased heading into the home- shopping season in at least five years. What's more, inventory of less- expensive starter homes is up 4.1% after being down 12.9% last year. First-time buyers make up 46% of all home shoppers, and more than six in 10 of them are millennials, according to a ranking of the most and least affordable housing markets for first-time homebuyers by Zillow. The study is based on four metrics—low median home value that requires a smaller down payment, strong forecasted home value appreciation, high inventory-to-household ratio, and a high share of listings with a price cut. While three of the six best markets for first-time buyers were in Florida, the ranking found that the most challenging mar - kets continued to remain in the West with housing markets in California leading the list. Source: Zillow 2019 Best Markets for First-Time Homebuyers Ten Best Markets for First-Time Homebuyers 1. Tampa, Florida 2. Las Vegas 3. Phoenix 4. Atlanta 5. Orlando, Florida 6. Miami 7. Detroit 8. Dallas 9. Nashville, Tennessee 10. Charlotte, North Carolina Ten Most Challenging Markets for First-Time Homebuyers 1. San Francisco 2. Seattle 3. Washington, D.C. 4. Los Angeles 5. Sacramento, California 6. Minneapolis 7. Denver 8. San Diego 9. San Jose, California 10. Boston 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10

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