PennyMac will raise capital from private investors, acquire loans from financial institutions seeking to reduce their mortgage exposures, and seek to create value for both borrowers and investors through distinctive loan servicing. Kurland was president and COO of Countrywide Financial Corp. until his departure in October 2006. The PennyMac management team also includes David Spector, CIO, who is former co-head of global residential mortgages for Morgan Stanley.
"We are pleased to sponsor PennyMac, a company that seeks to bring patient capital to the unprecedented distress in residential mortgages," says Laurence Fink, BlackRock chairman and CEO. "Stan Kurland and his team have enormous talent and experience in the mortgage business, making them well equipped to develop effective solutions for sellers of mortgage assets and homeowners alike."
Jonathon Jacobson, Highfields co-founder and senior managing director, says that "there has been intense market focus on write-downs of mortgage-related securities, but whole loan losses have barely begun to materialize. Over the next two to three years, we anticipate that the volume of bank-held non-performing mortgages will grow dramatically. PennyMac will be extraordinarily well positioned as both a buyer and servicer of these assets."
Kurland notes that "our intent is to combine fresh capital with deep mortgage portfolio management and servicing expertise. … PennyMac's strategy is to avoid foreclosures, and instead restructure the loans of struggling borrowers so they can continue paying and stay in their homes. As a specialty servicer without the burden of a legacy portfolio or business practices, we have the flexibility to offer individual borrowers unique solutions to address their needs."
PennyMac's loan servicing activities will be managed through a proprietary servicing operation based in southern California. PennyMac will also utilize BlackRock's capital markets and mortgage expertise, including risk management analytics. PennyMac did not return GlobeSt.com queries before deadline.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
