Jeremy: Hello, my name is Jeremy Finger with Riverbend Wealth Management. Thank you for joining us. I have the pleasure of this call to have Chris Davis with Guild mortgage. He's gonna share us some insights on what an independent mortgage company can provide that may be much different than what you may have experienced with a big bank. So, thank you Chris Davis for joining us on this call and tell us a little bit about yourself and your mortgage.
Chris: Yeah absolutely. Jeremy, thank you so much for having me heads up. As you know we both kind of came from a similar background, a large institution, right? Less that and kind of started our own thing, Guild Mortgage has been here more. I've been around since 1960. So we held one of the oldest FHA case numbers in America. But it's kind of independently operated and sort of model that we have. So just like you, we started here in the Myrtle Beach area 8 years ago. Like I said came from a larger bank. Really looking to provide a differentiated customer experience for our clients, right? So, at the larger bank we were really hamstrung because banks do so many other things. They have so many streams of revenue that the mortgage divisions typically don't get a whole lot of the accolades and all of the resources that yield mortgages so we did, we do mortgages, we do well. We're not worried about deposits or checking accounts or anything like that. So we have to do it well. We have to be on the cutting edge and that's really what we provide. Like I said a differentiated customer experience, high touch, high tech, and we get it done. We get it done with amazing customer service and we're able to provide some resources that a lot of banks don't have especially right now during the pandemic. We're seeing larger banks and institutions really shrink that credit box so people that have banked there for years and years are coming to us saying, well, they just declined me and I've got a 680 credit score which is traditionally a fine credit score but I don't know if you saw Chase went to 740 credit. Also, it takes about 70 percent of Americans out of that credit profile.
Chris: Strange times where we at. Good for us that we're nimble enough to be able to still provide these sorts of resources but really have a hard time with some people out there that are thinking I can refinance or I can buy a house and they get shot down for really no great reason.
Jeremy: Right. Right. Right. So typically I guess what I hear you're saying is that, in these institutions you kind of have to fit within a box, a narrow box. And if anything outside of that box doesn't fit that then they just tossed it to the curb and go on to the next one.
Chris: That's right.
Jeremy: And so now it's like you have a lot more flexibility with that.
Chris: We really do.
Jeremy: Can you provide, kind of like, maybe an example, share any names or anything. It's kind of an example of someone who got denied you know and in the bank and how you're able to help them.
Chris: So it happens literally once, twice a day with us. People come in, they're deflated. They like, you know, we were halfway through this process and kind of got the rug pulled out from under us. And people just don't know that it's different from institution to institution
Chris: Yeah. We're able to provide government loans and conventional loans and USDA loans, VA loans. So some of those credit scores vary wildly. We're at 600 credit score and above on a FHA loan for example, most lending institutions are now at 680 or above for a FHA loan. So, we're seeing it all day long. So places that have declined these folks they come in and they close 7 to 10 days later with us.
Jeremy: 7 to 10 days? Wow.
Chris: I mean, it's possible because we're scaled appropriately. Right now, lenders have a ton of refinances going on and they're not nimble enough to scale up to provide the resources to get these things closed. It's taken 100 days to close a refinance in some places. But if they can even close them, we're still 30 days or less on pretty much everything we did.
Jeremy: My goodness. And so when you say scale up, I mean, are you using technology to help you do that?
Chris: A lot of technology, we've invested heavily in technology. Day one certainly, so we can do a loan and in some cases pull over the borrower's income information from a third party source, pull over their banking account information from a third party source, all security encrypted. Hit a button and we get approved and we don't need any income or asset documentation, that arduous process. Remember of gathering taxes stuff-
Jeremy: That is crazy. Normally people as they go along, gotta go to CPA, get them to send and finish stuff, pick up these documents.Oh my goodness, yes, that's fantastic.
Chris: It's wonderful it really is. If you're employed by a larger company you know of course, if you're self-employed, you won't subscribe to that service. So we'll still need some documentation and a lot of cases, it's much more minimal than a bank would ask for. So, for example one year of tax returns versus two years of tax returns. So that helps a lot.
Jeremy: Yeah, absolutely. And so, that is kind of crazy. I say that, but then I guess that's why, you know, I have a job but it's that so many people simply don't realize what interest rates they're paying on things. I even had a banker, you know paying 5% or 6% on a note he could refinance. He just simply didn't pay any attention to it, and say, we'll save him a few hundred dollars a month which of course you know adds up over the course of years. Not being able to get not only a quick service and in a lower interest rate it can certainly help your retirement future and going forward.
Chris: Oh it's a big deal, you reallocate these funds in a lot of cases we can do some cash out refinances at a really low rate. Rates are edgy you know cause they're at historical lows. I mean they're down in the low three. Some in the twos. So, you can take you take these high interest credit card debt that people are paying 19%, 21% on, consolidated, with a cash out refinance it 3%, and that we're saving people. I just did a consolidation deal for someone yesterday and I saved them about $1,400 a month on a bigger on a $300,000 cash out where equally-
Jeremy: Are you serious? I mean, this is like, would you like to have a $1,400 raise? That's really a penny saved is a penny earned. I mean, it really makes a difference.
Chris: Huge difference. Think about that $1,400 now you can save for retirement. You can put that away. You can put them in something that can really make a tremendous difference in their lives and their children's lives with that type of money. So it's really cool.
Jeremy: Yeah, absolutely. So, where are you getting most of your clients? Is it word of mouth? Is it financial advisors like me? Are they getting the nod from some location, looking up online? How did they get that?
Chris: Kind of all of the above. We have an online presence. I've got a database. I've been doing this for over 20 years. So you know the repeat business that we have a loyal client base we build. It's really something we're very proud of, you know. Referral sources like CPA, like financial planners like you guys, realtors, developers. They know that if they send them to us we're going to close. We're going to have a great experience so that's typically where our business flows from.
Jeremy: Perfect. Chris, thank you very very much for this, tell me and tell the viewers here how I can get in touch with you.
Chris: Sure. We've got three offices here in the greater Myrtle Beach area so you find us online at GuildMortgage.com or the main office number 843-839-5626 and we'd love to help.
Jeremy: Perfect. I'll make sure to provide the information in the description below. My name's Jeremy Finger with Riverbend Wealth Management. I'm also an independent company who uses Fidelity Investments and many other institutions like Guild Mortgage to help our clients, we're not obligated in any way, shape or form or incentivize in any way shape or form to be able to obligate referrals anywhere. Truthfully, we just try to use the best people for the job. And thank you again Chris Davis for your time and contact us if you need anything, okay?
Chris: Thank you, my pleasure. Thank you for having me. Jeremy.