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Guild Mortgage CEO Mary Ann McGarry plans to step down on June 30 and hand over leadership of the company to Terry Schmidt.
Schmidt, 61, was McGarry’s first hire at Guild in 1985, and the two led a 2007 management buyout of the company from founder Martin Gleich with investment from McCarthy Capital.
McGarry, 64, has served as CEO since 2007, and is retiring after nearly 40 years with the company in roles that include chief operating officer and chief financial officer. She will continue to serve as a non-employee member of Guild’s board of directors, which she was appointed to in 1988.
“Mary Ann is a people person and our ah-ha moment was to go beyond focusing on the transaction as an asset only,” Schmidt said in a statement. “We wanted to build relationships and trust. We want to drive business back to the original loan officer for a better customer experience. Mary Ann was always a champion in this evolution and encouraged input from every corner of the company. Everyone felt they had a voice. This approach took Guild to new levels.”
Schmidt joined Guild as a member of its internal audit department, and since 2020 has served as president of Guild Holdings Co., overseeing the company’s finance, human resources, capital markets and compliance departments.
As CEO, Schmidt’s base salary will increase from $600,000 per year to $675,000 per year on July 1, and her target bonus will increase from 125 percent of her base salary to 150 percent of her base salary, the company said in a regulatory filing. Guild will also grant Schmidt restricted stock units valued at $500,000 on July 1.
David Neylan, who joined Guild in 2007 and now serves as executive vice president and chief operating officer, will replace Schmidt as president and continue as Guild’s COO. Neylan, 47, will get a $45,000 pay raise to $550,000 per year with the potential to earn 100 percent of his base salary and receive restricted stock valued at $150,000 on July 1.
Although rising mortgage rates meant last year was the first time since 2017 that Guild did not grow its mortgage origination volume, the company remains focused on growth, announcing its third acquisition in as many months last week. The acquisition of Colorado-based Cherry Creek Mortgage expands Guild’s retail branch network by 68 offices in 45 states and adds reverse loan options to the company’s product lineup.
Guild mortgage originations, 2007-2022
Source: Guild 2022 annual report to investors
Guild remained profitable last year largely on the strength of its mortgage servicing business but also shed about 1,100 employees as loan originations shrank by 48 percent to $19.3 billion.
The company’s focus on providing purchase loans to homebuyers rather than refinancing existing borrowers served it well last year, McGarry said in an earnings announcement.
“We demonstrated our proven ability to effectively navigate through a more challenging industry market and interest rate environment,” McGarry said of the company’s 2022 results. “This resilience was a direct result of our strategy as more than 80 percent of our originated loans were purchase mortgages in 2022, including targeting first-time buyers and diverse markets.”
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