Connecticut-Based Lender and Servicer Planet Home Lending announced a deal on Thursday that bolsters its servicing portfolio, which the company claims is already above the $90 billion mark.
Thank you for reading this post, don't forget to subscribe!Planet makes bulk acquisition of $10 billion Mortgage Servicing Rights (MSR) ginnie mae loan from Village Capital & Investment LLC, and anticipates that it will continue to bid for MSRs by engaging in bulk and co-issuance transactions in the second half of the year.
The deal with Village includes a Rs 45,000 home loan secured by Ginny Mae. To understand the profile of loans, Nevada-based mortgage banking company The Villages focused its federal housing administration (FHA) streamlined refinance programs in 2011, according to its website. The company claims that it keeps costs low and uses targeted marketing techniques to pass on savings to its borrowers through lower rates.
The transaction adds billions to the servicing rights of a growing servicing company.
Planet was the 29th largest servicer in the country with an owned mortgage servicing portfolio of $68.5 billion in the first quarter of 2023. inside mortgage finance (IMF) estimates. The data shows that the volume in Q1 2023 was 68.3% higher than the same period last year.
However, Planet claims to have a $94 billion servicing portfolio by June 2023, and the deal with Village boosted its MSR book by 10.6%. In early May, the company launched a commercial servicing division led by James DePalma and Janina Woods.
Planet was very active in MSR deals in the first half of 2023.
“We bought $12.5 billion in MSRs [the Village deal is included], And some of the larger deals went to battles against other bidders. Very competitive,” Michael Dubeck, CEO and President Planet Financial Groupthe parent of Planet Home Lending, told HousingWire during an interview in mid-May. “A big acquisition was decided in April. And we probably did six smaller ones in February, March and April,” Dubek said.
According to Dubeck, Planet “continues to be a provider of liquidity for mid- and small-scale issuers, providing competitive pricing to sellers.” In May, Planet closed a $150 million increase in its traditional MSR facility, Dubeck said. Because “naturally, companies need bigger lines to grow.”
Industry observers said 2023 would be a “bull year” for MSR trading, with low-rate legacy loans dominating the property market and a strong demand.
HousingWire reports that rocket hostage Sold nearly $20 billion in MSRs JPMorgan Chase in April following a decline in its servicing book in the first quarter of 2023, amid a challenging operating environment.
Wells Fargo also put up for auction an MSR portfolio worth approximately $50 billion and mr cooper It won the deal, sources told HousingWire. Mr. Cooper will inherit Home Point Capital’s $84 billion servicing portfolio as part of the acquisition of the company for $324 million in cash.
