PennyMac Chief Talks about NPL Securitizations
Video interview of Stan Kurland
Aug. 3, 2010
| A former senior executive of Countrywide Financial Corp. is investing in non-performing loans through his current venture, PennyMac Mortgage Investment Trust. He sees possible securitizations for non-performing loans.
Stanford L. Kurland was president and chief operating officer at Countrywide when he left his 28-year career in 2006. In 2008, he launched Private National Mortgage Acceptance Company LLC, or PennyMac. CNBC reported that while the company initially planned to buy at-risk loans that could be worked out and re-sold on the secondary market, banks weren’t selling. So the strategy shifted to investments in non-performing loans at discounts between 40 and 60 percent. The PennyMac chief executive officer told CNBC that the company is looking to securitize non-performing loans as a way to raise capital for additional investments. He said returns are currently in the “mid-teens.” |
