What We're Hearing

In PennyMac's recent IPO filing with the Securities and Exchange Commission the company expresses some concern that "publicity and media attention" concerning litigation and investigations involving Countrywide Financial Corp. may have an adverse impact on its operations. The reason, of course, is that PennyMac's CEO is Stanford Kurland, a former president of CFC. (He worked there for 28 years, starting out as an accountant.) Then again, Mr. Kurland left the company in the summer of 2006 well before the mega lender/servicer ran into deep financial trouble. Mr. Kurland also (smartly) dumped most of his holdings in the company. In fact, two days before company chairman Angelo Mozilo gave him the boot (resigned under pressure) he sold about $130 million worth of CFC stock. In PennyMac's IPO filing the company notes that former Countrywide officers -- including Mr, Kurland -- have been named as defendants in Countrywide-related lawsuits. "However, we cannot assure you that existing or future, if any, investigations or litigation will not generate publicity or media attention or adversely impact" PennyMac's ability "to conduct their respective businesses." The SEC document notes that Mr. Kurland isn't the only current PennyMac employee who used to work at Countrywide. There are others and some are defendants in CFC lawsuits as well…