Posted on 03/20/2008 2:41:04 PM PDT by Toddsterpatriot
NEW YORK (Reuters) - Former Countrywide Financial Corp (CFC.N: Quote, Profile, Research) Chief Operating Officer Stanford Kurland has created a mortgage company that will focus on buying loans from financial companies trying to reduce their mortgage exposure.
At least nine other former Countrywide officials are joining Kurland in the creation of the Private National Mortgage Acceptance Co, which like Countrywide is based in Calabasas, California, according to PennyMac's Web site.
A spokeswoman on Thursday confirmed that the company and the Web site are real.
Before leaving Countrywide in September 2006 after a 27-year career there, Kurland had been considered the likely successor to Angelo Mozilo as chief executive.
At PennyMac, Kurland is chairman and chief executive. David Spector, a former co-head of global residential mortgages at Morgan Stanley (MS.N: Quote, Profile, Research) in London and senior managing director of secondary markets at Countrywide, is chief investment officer, PennyMac said.
PennyMac said its focus is on "investing and servicing residential mortgage assets on behalf of private investors."
Countrywide last year lost $703.5 million, its first annual loss in more than 30 years. It agreed in January to be acquired by Bank of America Corp (BAC.N: Quote, Profile, Research) for about $4 billion.
David Sambol replaced Kurland as Countrywide's chief operating officer. Bank of America has named him to lead the combined companies' mortgage business.
(Reporting by Jonathan Stempel, editing by Richard Chang)
Who says there are no second chances in life?
LOL this has all the makings of a fine business plan ... NOT !
But don’t worry, the pumpmeisters have assured us we’re at the bottom now !
Just please tell me they won’t make any commercials like those horrible CountryWide commercials. Those being gone was the best thing about their collapse.
Why do you say that. The vast majority of mortgages do perform. Their not all sideways. If he can cherry pick good ones from sellers that need to get out fast he may do well.
there are perfectly good mortgages that are selling for pennies on the dollar...I say its a good plan.
I think so. We are going to have a long slow period of unwinding these mortgage positions. There are bound to be all kinds of funds that got in at the top and now have to straighten out their balance sheets.
Buy when there is blood in the streets.
"Country Wide is on your side".
But are the insured mortgages going for cheap? If this backfires, it will leave this guy's company owning billions of dollars in depreciating real estate. Unless the strategy is to rent them out until the market rises, but that could take a decade or more...
What? This is not even close to right.
Almost 1 out of 2 prime mortgages in foreclose? I don't think so. The total rate for ALL foreclosures is less than 1%. Can I have your source for a 45% foreclosure rate?
Not saying we don't have a big problem. We do. But half the homes in the U.S. are not in foreclosure.
Here is what I find.
http://www.suntimes.com/business/currency/830781,CST-FIN-wallet07web1.article
No, sorry, I was in a bit of a hurry. I meant 45% of all homes currently in foreclosure were considered to be prime.
I think that’s “Nationwide is on your side.” It’s an insurance company commercial.
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