PennyMac Interested in Servicing and Condo Development Loans

PennyMac Mortgage Investment Trust, a publicly traded vulture fund, says in a new public filing that it is exploring the idea of purchasing distressed condominium construction loans and growing its residential servicing business. In a filing with the Securities and Exchange Commission, the Calabasas, Calif.-based company says it would like to buy condo construction loans at a discount and then finance the completion of projects. "This solution creates the opportunity to effectively repackage distressed developer loans into high-quality residential loans." As for the MSR market, PennyMac thinks it can buy servicing rights from "liquidating and other institutions." PennyMac is currently subservicing more than $2 billion in troubled loans for outside parties.