Guild Holdings Company

Good afternoon, ladies and gentlemen, and welcome to the Guild Holdings Company fourth quarter 2020 earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session with instructions to follow at that time. As a reminder, this call will be recorded. I would now like to turn the conference over to Michael Kim, Investor Relations. Please go ahead, Michael.

Thank you, and good afternoon, everyone. Before we begin, I'd like to remind everyone that comments on this conference call may contain certain forward-looking statements regarding the company's expected operating and financial performance for future periods. These statements are based on the company's current expectations. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of risks or other factors that are described in greater detail under risk factors in GILDS Form 10-K and 10-Q and other reports filed with the U.S. Securities and Exchange Commission. Additionally, today's remarks will refer to certain non-GAAP financial measures. Reconciliations of non-GAAP financial measures, where appropriate, to the corresponding GAAP measures can be found in today's earnings release filed with the SEC as well as on GILD's Investor Relations website. Participating in the call today are Chief Executive Officer Mary Ann McGarry, President Terry Schmidt, Chief Financial Officer Amber Elwell, and Chief Operating Officer David Nalen. Now, I'd like to turn the call over to Mary Ann McGarry. Mary Ann?

Thanks, Michael, and good afternoon, everyone. I wanted to start by acknowledging all of GILD's employees for their ongoing efforts and contributions throughout what was a remarkable year. Without their hard work and dedication, we would not have been able to report the levels of growth and success we achieved in 2020. I'd also like to thank all of our clients for their continuing trust and business. GILD is more than just marketing and market share. We build long-term relationships with our clients and drive more sustainable growth across cycles. And finally, we remain focused on driving long-term value for our existing and prospective shareholders. I'm going to spend a few minutes discussing our differentiated platform and how we are prepared to drive consistent growth and profits as the interest rate environment shifts. Terry will walk through how GILD is positioned for sustainable growth. Amber will discuss our financial results for the full year and fourth quarter of 2020. And we will then be joined by Chief Operating Officer David Nayland for Q&A. For 2020, we generated exceptional results across originations, revenue, net income, and adjusted net income, reinforcing the strength and differentiation of our business model. Consistent with other mortgage lending providers, Guild benefited from historically low interest rates, driving record refinance activity across the industry last year. Unlike some peers, we remain well-positioned to continue to deliver sustainable and profitable growth across cycles. reinforced by our 60-year track record. At the core, our business model is focused on purchase lending, which historically has delivered more durable volume and higher returns on average versus refinancing activity across interest rate cycles. For the five-year period from 2016 to 2020, purchase loans accounted for 64% of our total origination. And looking ahead, according to February's forecast, the Mortgage Bankers Association forecasts purchase originations to increase 10% in 2021, while refinancing originations are expected to decline year over year. Next, our origination strategy centers on the retail channel. where borrowers interact directly with our loan officers throughout the client life cycle. It is this personalized and local mortgage borrowing experience that engenders client trust and brand recognition and more favorable unit economics over time. Finally, our scale-enabled servicing business generates a recurring stream of cash flows helps to extend client relationships, and works as a natural hedge during rising interest rate environments. So with that, I'd like to turn it over to our president, Terry Schmidt. Terry?