The Meriden, Conn.-based Planet Home Lending reported stable performance across all channels announcing third-quarter earnings on Thursday, Nov. 7.
Planet’s residential origination volume rose 28% from the second quarter to $5.11 billion, more than double the Mortgage Bankers Association (MBA)'s projected 11.6% quarterly increase for overall origination volume, company officials said.
Additionally, Planet expanded its retail division with the acquisition of certain assets of Axia Home Loans, growing its retail volume by 28% to $251 million. The lender also increased its servicing portfolio to $110 billion, raising sub-servicing assets under management to $12.8 billion.
Planet’s recapture originations increased to $482 million in the third quarter, a rise of 109% compared to $230 million in Q2 2024.
“The mortgage industry is emerging from one of its longest down cycles,” said CEO and President of Planet Financial Group Michael Dubeck. “Our performance throughout the prolonged inverted yield curve showcased the resilience and strength of Planet’s multichannel business model. As interest rates begin to moderate, our platform is well-positioned for strong growth.”
The lender’s quarterly performance positions it well to capitalize on improving market conditions and new opportunities, company officials agreed.
“In Q3, our Retention Retail business achieved exceptional growth, surpassing our total 2023 volume and crossing the $1 billion funding mark in September,” President of Lending John Bosley commented. “With outstanding recapture performance, we funded $480 million in Q3, significantly exceeding the $456 million funded for all of 2023. Our operational and sales teams expanded to meet demand and to handle the surge in volume we expect in the final quarter.”
Planet’s acquisition of Axia expands its footprint across the West, Midwest, and Northeast. Distributed retail volume increased to $251 million in the third quarter, up 36% from prior quarter volume of $187 million. In September, Planet achieved its highest funding and lock volumes since mid-year 2022.
Correspondent volume was $4.4 billion, up 22% from $3.6 billion in the second quarter. Planet continued to strengthen its core correspondent offerings, with a particular focus on government loan programs.
“We remain committed to supporting affordable housing by expanding our renovation and manufactured housing lending volume,” Bosley said. “We recently released a comprehensive Guide to Manufactured Housing Lending. Our renovation loan programs continue to be a grand slam, delivering significant value to our correspondent partners.”
