Former Countrywide Execs Form PennyMac to Buy Mortgages
NEW YORK -- A group of former Countrywide Financial Corp.'s executives are creating a new firm to capitalize on the breakdown in the mortgage-securitization business.
A new company created by former Countrywide President Stanford Kurland and other high-ranking colleagues is called Private National Mortgage Acceptance Co., or PennyMac. It will purchase distressed whole loans, revamp them and resell them at a profit. PennyMac has received funding from the private equity firm BlackRock and Highfields Capital Management.
Reports note that PennyMac will buy one loan at a time rather than bundles of mortgage securities and then work with borrowers to restructure terms to make them repayable and profitable.