So Countrywide lives again in PennyMac

Well for those of you who are unaware of who Penny Mac is , these are the good old boys of Countrywide, you know the fraudsters who were up to their necks in the mortgage nightmare.
As an investor I would run not walk to the nearest exit.





 PennyMac CEO Stanford Kurland, who spent most of career at Countrywide, is recreating his old firm.

How nice, bankrupting the country the first time around wasn't enough.  So it's perhaps no surprise that one of the first firms to rush into this profit-filled fun house is headed by the former executives of the most notorious subprime lender of the era that led to the financial crisis. PennyMac (PMT), a finance company run almost entirely by alumni of Countrywide Financial.
 To head the office, PennyMac has tapped Stephen Brandt, who, according to a Congressional report released in July, ran Countrywide's "Friends of Angelo" program. The report found that Brandt's former unit handed out hundreds of sweetheart loans to members of Congress, their staffs and other government employees. One of the main thrusts of the division, according to the report, which was nicknamed after Countrywide's former CEO, Angelo Mozilo, was to soften anti-predatory lending laws.( How nice )
 "There's free money on the table and you don't have to work that hard to get it, especially if you are the former executives of Countrywide," In the past year, though, PennyMac has morphed into something that more resembles Countrywide. PennyMac's stated business plan was to buy up delinquent mortgage loans on the cheap, offer modifications and make some money in the process.( In other words NON PERFORMING LOANS- FORECLOSURES, that these monsters originally created! )

Look up PennyMac created by employees of country wide, you will be shocked.

PennyMac Readies Its First Jumbo Securitization

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PennyMac is putting its first jumbo mortgage-backed securities deal in the pipeline, a deal roughly $550 million in size, according to a Kroll presale report.

The $550,462,191 deal is backed by loans with a weighted average first-lien loan-to-value ratio of 69.7% and a combined first- and junior-lien loan-to-value ratio of 70.6%. Merrill Lynch is named as the lead manager for the deal.
“These low ratios exhibit a substantial margin of safety against potential home price declines,” Kroll said in its report. “However, it should be noted that these are the higher WA LTV and WA CLTV ratios seen in a pool rated by KBRA.”
Top originators contributing to the deal are AmeriSave (13.1%), Guaranteed Rate (9.6%), JMAC (8.2%), PRMG (6.3%), RPM (6.2%), Cobalt (6%) and George Mason (5.4%). Geographically, the higher state concentration is found in California (56.5%), the largest loan in the pool is $1.96 million.
Kroll assigned an expected AAA(sf) rating to six classes of exchangeable certificates in the transaction, two of which have 7.75% credit enhancement. It also assigned investment grade expected ratings of AA(sf), A(sf) and BBB(sf) to three tranches, which, respectively, have 5.2%, 3.45% and 2.45% CE.
One class with 1.4% CE received a speculative grade BB(sf) rating and two classes did not receive ratings from Kroll.
The transaction, which will be services by PennyMac, lacks a master servicer.

“In most RMBS transactions, upon a servicer default a master servicer generally steps in to facilitate the continuity of critical servicing functions such as loss mitigation and advancing of principal and interest,” Kroll noted in the presale report. “To mitigate concerns regarding the lack of a master servicer, Citibank NA, as fiscal agent, will be required to make any P&I advance due if the servicer fails to fund such advance.”