PennyMac, Correspondent Giant?

PennyMac released 4Q earnings this morning and the big news wasn't its profit – which was decent – but the fact that it bought almost $1 billion of mortgages from other lenders via the correspondent channel. PennyMac founder and CEO Stan Kurland said 1Q commitments may top $1.8 billion – not bad for a company that came into this world on a mission of buying delinquent loans made by Countrywide Financial and other reckless lenders. (As most anyone in the industry knows, Kurland worked at CFC but was squeezed out before things got ugly there – something he must be forever grateful for.) With backing from Citigroup and BlackRock, PennyMac could substantially grow its correspondent purchases in the quarters ahead. Who knows – within a year it could be a top 10 ranked player in correspondent.

Origination

Comments (4)

Does anyone other than me find it incredibly offensive that the old CFC gang is getting fat on buying "delinquent" loans made by "reckless lenders" that they used to be be the executive management of? Not bad, know you're making bad loans and then form a company that will buy those bad loans for "pennies" on the dollar - disgusting! And they get lots of free press - got stock?

Posted by Drank the Kool-aid | Wednesday, February 08 2012 at 3:08PM ET

I can't wait for Kurland to face criminal charges for all the things he "didnt have knowledge of" while at countrywide.

Posted by Hugh G. Balls | Wednesday, February 08 2012 at 7:51PM ET