A vulture firm founded by former Countrywide Financial Corp. president Stanford Kurland filed Friday to raise as much as $750 million in an initial public offering. According to Securities and Exchange Commission documents, the fund is telling investors that there are "unique" market opportunities in the distressed mortgage market whose size it estimates is at least $1 trillion. As a technical matter, the unit going public is called PennyMac Mortgage Investment Trust (a REIT) which will be managed by Private National Mortgage Acceptance Co., a Calabasas-based company that Mr. Kurland formed about two years ago with backing from BlackRock Inc. and Highfields Capital Investments. To date, PennyMac has made only one sizeable investment, a $558 million portfolio of 2,800 residential loans where it has a cash flow sharing arrangement with the government. PennyMac's chief investment officer is David Spector, former co-head of residential mortgages for Morgan Stanley. According to PMMIT's S-11 filing, its business plan is to invest mostly in residential loans and provide "attractive risk-adjusted returns to our investors over the long-term, primarily through dividends and secondarily through capital appreciation." It notes that $750 million is the maximum amount it hopes to raise.
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In its latest financial stability report, the Federal Reserve found that asset prices continue to exceed underlying fundamentals and leverage levels remain high, especially by hedge funds.
April 25 -
The Long Island-based regional bank, which reported another quarterly loss Friday, continues to hire in the commercial-and-industrial lending sphere as it seeks to diversify its commercial real estate-heavy business.
April 25 -
The lender's parent also said it is actively in preparation to move forward on plans to unlock equity value in 2025, with a Newrez spinoff among its options.
April 25 -
Doug Duncan may be retired from Fannie Mae, but not from the housing market—his new firm is ramping up with writing, speaking, and advisory work.
April 25 -
The way mortgage firms address distressed military borrowers will become less regimented as the Veterans Affairs Servicing Purchase program gets phased out.
April 25 -
The trend is not the norm but there are growing opportunities to buy for less in some areas many people gravitate to, real-estate brokerage Redfin found.
April 24