The transaction is the first structured sale of a non-construction residential mortgage loan portfolio by the FDIC to date. First National Bank of
"We are excited about investing in and managing mortgages in this unique transaction where we share in the economics with the FDIC," said
PennyMac was formed in early 2008 by BlackRock, Inc. (NYSE: BLK), Highfields Capital, and a management team of mortgage industry veterans led by Mr. Kurland to address the ongoing dislocations in the U.S. mortgage market.
PennyMac's focus is acquiring and working out residential mortgage assets on behalf of private investors. PennyMac's operations include departments led by executives with deep expertise in the areas of sourcing investment opportunities; modeling, valuation, and capital markets activities; due diligence and transaction management; strategic portfolio management and deployment of PennyMac's innovative loan restructuring programs; and an integrated, dedicated mortgage servicer.
Mortgage servicing of the loan portfolio will be performed by PennyMac Loan Services, LLC, a wholly-owned subsidiary of PennyMac. PennyMac will apply the FDIC's loan modification programs and its proprietary mortgage restructuring initiatives in order to address the issues of troubled borrowers.
"PennyMac's objective is to maximize value by working with borrowers to maintain ownership of their homes and reduce foreclosures," said Mr. Kurland.
PennyMac has raised substantial commitments of capital from institutional investors in the U.S. and abroad in investment funds that purchased other residential mortgage loan portfolios from financial institutions last year.
About Private National Mortgage Acceptance Company, LLC
Private National Mortgage Acceptance Company, LLC (PennyMac) is a financial services firm created to address the dislocations in the U.S. mortgage market. PennyMac's focus is acquiring and managing residential mortgage assets on behalf of private investors. The company is managed by a team of mortgage industry veterans led by
About BlackRock
BlackRock is one of the world's largest publicly traded investment management firms. At
About Highfields Capital
Highfields Capital, founded in 1998, is a value-oriented investment firm focused on achieving long-term capital appreciation by investing in public and private companies. It invests its capital worldwide, across a wide variety of industries, security types and geographies and has made substantial investments in mortgage and real estate securities. For further information, see www.highfieldscapital.com.
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SOURCE Private National Mortgage Acceptance Company, LLC