TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/1379186
M R EP O RT | 7 real estate clients, especially when in-person meetings aren't always possible or necessary," said Joe Kazzoun, GM and VP of dotloop. "With the click of a button, clients can quickly and easily get their documents safely and securely notarized, all from the comfort of their own home." The Notarize platform uses secure technologies to allow clients to legally sign and notarize documents by video 24/7 via a computer, tablet, or smartphone. "Consumers and real estate agents are clamoring for fully-dig- ital solutions, and in this current market, a solution that combines speed, ease-of-use, and security is a powerful tool," said Pat Kinsel, CEO and Co-Founder of Notarize. Northeastern Exposure GUILD EXPANDS INTO THE NORTHEAST WITH THE ACQUISITION OF RMS. G uild Holdings Company and Residential Mortgage Services Holdings (RMS) have signed a definitive merger agreement under which Guild will acquire RMS, subject to regulatory approval and other customary closing conditions. Through the acquisition of retail originator RMS, Guild will expand its presence in the Northeastern U.S. Following the transaction, which has a purchase price estimated at $196.7 million based on March 31, 202,1 tangible book value, the RMS management team will continue to manage the business. Established in 1991, RMS has 70 offices across 14 New England and Mid-Atlantic states. The RMS management team averages more than 30 years of industry experi- ence, and like Guild, specializes in conventional and government lending. "We have a history of growing through targeted acquisitions, and the transaction with RMS sup- ports our strategy to expand into the Northeast," said Mary Ann McGarry, CEO of Guild. "Our close cultural alignment and com- mitment to strong values across both organizations, combined with a retail and purchase market focus provide us with confidence that this acquisition will contrib- ute to our ongoing success. With both teams dedicated to providing exceptional customer service, and the many synergies between our products, sales tools, and servic- ing teams, this is a natural fit. We expect the combination will result in an even stronger platform that will continue to deliver profit- able sustained growth, as we create long-term value for all our stakeholders. We look forward to welcoming RMS to the Guild team." In 2020, RMS generated $8.5 bil- lion in loan originations, achieving a compounded annual growth rate of 26% since 2010. "We are excited to join forces with Guild Mortgage to drive continued growth for our respec- tive stakeholders," said Jim Seely, President and CEO of RMS. "Guild and RMS share a similar entrepreneurial culture—one that places a high value on market expertise, efficiency, and pro- ductivity. This transaction is a natural next step to build on our success and take our business to the next level by partnering with a national powerhouse in the residential mortgage market. Leveraging Guild's technology, in-house servicing platform and enhanced access to the capital markets will enable us to further expand our value to our custom- ers, provide new opportunities for our employees, and continue growing our market share in the Northeast." Guild reported that it gener- ated originations of $9.8 billion in Q1 2021, representing year-over- year growth of 70%. Guild also reported Q1 net revenue having increased 209% year over year to $526 million. "Looking ahead, we remain well-positioned to grow given our focus on purchase loans in the retail channel, an expanding geographic footprint, and our scale-enabled servicing platform," McGarry said. "While rising interest rates, slowing refinancing activity, low supply of homes, and contracting margins will impact Guild and the entire mortgage MTECH "Consumers and real estate agents are clamoring for fully- digital solutions, and in this current market, a solution that combines speed, ease-of-use, and security is a powerful tool." —Joe Kazzoun, GM and VP, dotloop