Case Study

Guild Mortgage

Draw Funds Delivered In 48 Hours

Guild Mortgage Achieves 246% YoY Increase In Renovation Loan Volume

“After extensive discussions, demoing the system, and meeting the leaders of Land Gorilla, we knew it was the right choice”

Erin Watts, vice president, product strategy, Guild Mortgage

Product Offering:

  • Renovation Loans:
    Fannie Mae Homestyle, FHA 203k
  • Construction-to-Permanent Loans (coming soon)

Goals:

  • Exceptional borrower experience
  • Configurable software and workflows
  • Expand renovation and CTP programs

Solution:

  • Construction Loan Manager SoftwareTM
  • Pre-Close Builder & Project Review Services
  • Post-Close Draw Management Services

Results:

  • 246%: Increase in renovation loan volume year-over-year
  • 48 Hours: Average time to fund draws

The Challenge

Several years ago, the Guild product strategy team identified a need in the market. They observed low housing inventory, increasing home prices, and aging homes that needed updating. It became apparent that a good solution to address these issues was to offer borrowers better choices with renovation loans. Renovation loans allow people to take the home they currently live in and make it what they need and want, or renovation loans can help borrowers purchase and renovate an older home in need of updating.

Traditionally, borrower options for this included taking out a personal loan, a cash-out refinance, or using a high interest credit card. These are not desirable options for many borrowers. But the good news is that renovation loans are becoming a more well-known and popular option that allow buyers to borrow more based on the home’s estimated appraised value after improvements are complete. Guild felt that launching a renovation product that they could manage and service in-house would address this major need in the market.

The Solution

Since signing with Land Gorilla, Guild Mortgage has achieved tremendous success with its renovation programs, experiencing a 246% year-over-year increase in renovation loan volume at the end of 2019.

“Since we began working with Land Gorilla in 2017, we have had an excellent experience,” said Watts. “Every loan is different. Land Gorilla has been very open to assisting us along the way, taking feedback and implementing relevant changes immediately. The responsiveness from their management and team members is excellent. We can always count on a quick email response or call back within hours. This makes for a great partnership.”

The Guild team found Land Gorilla’s Construction Loan Manager software to be very robust and easy to use. “There is so much information that goes into the renovation loan process,” said Watts. “Land Gorilla thought of everything. There’s just so much functionality. For example, if you need to upload a cost breakdown, the software can accept a line item breakdown, or a templated budget for our 203k loans. Or if you don’t have capabilities within your servicing group to provide escrow statements to the borrower, the software has that ability.” Land Gorilla’s Construction Loan Manager provides a number of robust software features including a fully digital draw management process, servicing tools to manage interest billing statements and escrow interest earnings, and an accounting feature to manage accounts, payments, reconciliation, and reporting.

Read More

Guild Renovation Before and After

Find out how Guild Mortgage found a solution with Land Gorilla

Copy link