PennyMac Buying $140M of Nonperforming Assets from Citi

PennyMac Mortgage Investment Trust has agreed to purchase nonperforming residential mortgages and property acquired in settlement of loans with an unpaid principal balance of $140 million from Citigroup Global Markets Realty Corp.

According to an 8-K filing obtained via DisclosureNet.com, Citi acquired the assets from an undisclosed large money-center bank. The filing said PennyMac will purchase the assets at a price based in part on a percentage of the unpaid principal balance of nonperforming loans, or the balance of the mortgage loan on the real property.

While the deal is still pending, PennyMac took over subservicing of the assets after July 1. The agreement calls for the deal to be completed on or before June 30, 2014.

PennyMac will reimburse Citi for certain out-of-pocket costs and other expenses including servicing fees and advances.