Its multi-faceted growth strategy leads to increased market share and servicing portfolio expansion
Planet Financial Group reported steady performance across its mortgage lending, servicing, and asset management business for the year ending 2023.
Despite challenging market conditions, group CEO and president Michael Dubeck said Planet achieved significant growth and market share increases.
“We gained market share in correspondent, raised capital, opened new funding avenues, increased sub-servicing and asset management for commercial and residential private client portfolios, and grew the OMSR book,” Dubeck said. “I’m also proud that in such difficult times, Planet maintained and improved our ratings.”
The company’s owned mortgage servicing rights (OMSR) portfolio rose 47% to $92.48 billion at the end of 2023, according to its latest financial report. This growth was mirrored in Planet’s origination volume, which reached $25 billion. The firm also reported substantial growth in private client assets, with a notable quarter-over-quarter increase of over 25%.
Its servicing portfolio ended 2023 at $104.69 billion, up 42% from the previous year. The sub-servicing volume also saw a significant rise, ending the year at $10.95 billion, up 68% from 2022.
Dubeck highlighted the growth in asset management and sub-servicing sectors (including non-QM, single-family rental, multifamily, debt service coverage ratio, residential transition loans, and small-balance commercial properties).
“This approach has consistently helped our private clients to optimize returns and cut costs,” he said in the company’s financial report. “We manage a wide range of real estate-related assets, encompassing residential, multifamily, and commercial investments, and handle diverse portfolio types including performing, non-performing, and reperforming assets.”
Planet’s market share in the non-prime sector grew from 1.1% to 2.5% over the first nine months of 2023, the company said, citing data from Inside Nonconforming Markets.
On the origination front, Planet’s residential origination volume ended at $25 billion, with correspondent volume holding steady at $23.78 billion.
“Planet’s market penetration rose due to our competitive pricing, streamlined delivery processes, reliable funding, and solid financial position,” Dubeck noted. “We maintained our market share by helping our lenders expand their scope and volume in 2023 with niche products, including affordable lending, manufactured housing, USDA, buydowns, and renovation home loans.”
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