Guild's Q1 2025 Earnings Call: Unpacking Key Contradictions in MSR Amortization, Housing Activity, and Strategic Direction

MSR amortization and servicing release percentage, housing market and purchase activity, guidance on margins and market conditions, acquisition strategy and market position, and MSR amortization and prepayment trends are the key contradictions discussed in Guild's latest 2025Q1 earnings call.



Origination Growth and Market Share:
- Guild Holdings reported 35% growth in originations year-over-year to $5.2 billion for Q1 2025.
- This growth reflects the Academy acquisition in Q1 2024 and organic recruiting efforts, with a doubling of loan officer headcount since the end of 2020.

Servicing Portfolio Expansion:
- Guild's servicing portfolio grew to $94 billion, providing financial stability and opportunities for loan recapture.
- The expansion of the servicing business supports the customer for life strategy and gives loan officers more at-bats with past clients.

Financial Performance and Stock Repurchase:
- The company reported positive adjusted EBITDA of $36.4 million and adjusted net income of $21.6 million for Q1 2025.
- Guild repurchased approximately 35,000 shares during the quarter at an average stock price of $12.94 per share under its share repurchase authorization.

MSR Amortization Expense and Prepayments:
- MSR amortization expense decreased significantly compared to the previous quarter, primarily due to lower prepayment speeds.
- The decrease in prepayment speeds led to a lower payoff percentage, impacting the MSR amortization expense.