Penny MAC?..... who are they and what do they want?

Services for Real Estate Pros with Taylor 1 INC

Have you heard of the New Mortgage company Penny Mac?

Penny Mac, a newly created mortgage company by Ex-CEO of Countrywide (Stanford Kurland).

The aim of this company is to buy back bad loans and restructure them! He's being backed by investment firms Black Rock inc. and Highfields Capital Management.

Penny Mac will also be looking to raise private monies to help buy these loans and restructure them at lower risk rates seeking to reduce their mortgage exposures.

This bank is believed to be well positioned to handle many loans and help the overage that are forthcoming.

I recently did a blog speaking about the advantages of having liquid capital at this moment. Those who have will be in a great position to take advantage of the current crisis, and benefit while helping others.

This just proves my point. I predict there will be other companies that will emerge as a result of this company's formation.

I'd love to hear your views on whether this is going to be perceived as an asset or is it another scheme? 


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Clark Garrison
Taylor 1 INC - Atlanta, GA
"Loan Modifications"

Here are the contact folks for Penny Mac. Give them a call, they should be able to assist you Rita. Good luck!

Andrea Calise, 212-521-4845
Molly Morse, 212-521-4826
Apr 15, 2008 10:04 AM #16

To Rita (04/14/2008 06:34 PM)

What's new, Rita?

Did they help you?


Jul 11, 2008 01:07 AM #17
Debbie Salmon
keller williams - Vancouver, WA

Good post and good information to have i love the article

Jan 01, 2009 01:56 AM #18

Thanks for my subprime mortgage 3 years ago, Countrywide!!!!  My house is now worth $100,000 LESS than I paid for it!

WOW now the former CEO of Countrywide jumped the sinking ship and formed a shiny brand new loan biz.  Buying up all the Countrywide-financed properties HE approved that are now in foreclosure.  WOO HOO!!!!  

Wonder if the CEO is also forming a moving company to help all those "losers" who went into default get the hell out of "his" new properties??  Will he laugh and count the money he's making off of families getting thrown out of their homes - the SAME homes he approved the loans for when he was head of Countrywide??  DON'T do business with this man - he is a sociopath!

Can't WAIT to see this company get ripped a new one by 60 minutes or 20/20.

Mar 04, 2009 06:29 AM #19

criminals who should be in jail taking the public for a second dip......



Mar 09, 2009 06:33 AM #20
bob sallamack

Penny Mac is one of the supporters of the fraud of the new Treasury plan.

The private investors in the new Treasury plan are not private investors but simply “front private investors” or “fake private investors” who will be rewarded to bid high prices for toxic assets using government money supplied by low interest loans.

These “fake private investors” only need to put up 7 percent to be rewarded with 50 percent of all the profits, and these “fake private investors” can simply walk away without any penalty regarding the government loans.

The Treasury is telling Americans that these “fake private investors” will produce a market where the results will be fair prices for “legacy assets”.

If this is not fraud, then all of the old manipulation schemes of subsidizing bids to raise the price of penny stocks were not frauds.

Only one problem for the Treasury.

It will impossible for the Treasury to hide the prices paid for toxic assets.  It will quickly be apparent that the government has paid very high prices for assets that are only sold in a real market at 30 cents for a dollar. My prediction is that the “fake private investors” will bid 70 cents to the dollar for these toxic assets.

There will be no way to hide this difference, and newspaper articles will explain to Americans the reasons.  Americans will quickly start to understand that they have been duped.
If the American people have been recently angry because of bonuses of 160 million dollars, what will be their anger when they find out their governement has defrauded them of 750 billion dollars?

Mar 27, 2009 02:20 PM #21

Let me tell you about my experience with Pennymac-  They hold two loans of mine.  This company has tried to bully me into paying back the loans in full or refinance them.  They have sent me a certified forclosure notice when I had never missed a payment.  They accused me of not answering their calls or letters when I spoke with them on a weekly basis trying to straighten out an error on their part where they miss applied a payment.  They sent me letters demanding proof of insurance and threatening me with putting their own insurance on my properties despite the fact that I have full insurance and had provided all the information to the company they bought the loan from.  When I called to inquire about what my payment should be they couldnt give me the information stating that they didnt know and that I should just pay what I paid before.  They offered me gift cards for signing up for auto pay.  Then it took no less than 4 letters from me with the same information before they informed me that I couldnt use auto pay on one loan but they were working at getting the other set up.  Im still waiting. I still have no gift card.  Not that I care but its just one more irritating aspect of this company.

This company was formed in order to buy loans it had originally sold for top dollar now it buys them back from the government at 50 cents on the dollar and hopes the loan holders refinance giving them a 100% profit in a matter of months.  Or they renegotiate your loan and suck off as much as they can before they step in and forclose. 

I am not losing my properties and am not disgruntled because of getting behind.  I have paid every bill and continue to do so I have plenty of assets and am in no danger of losing my houses.  I write this because I want people to know just what a travesty this company is.  I am happy to see  indictments comming down today on the founders of countrywide and I think they will also come down on this company.

Jun 05, 2009 05:26 AM #22

A skunk by any other name is still a skunk. This outfit, run by a Countrywide ex-Ceo has purchased, is rewriting the Countrywide toxic loans.  They caused the mortgage problem and are now benefiting from it.

Jul 29, 2009 05:54 AM #23
rey bates

earlier this year my hours were being cut at work and still are declining and after going to a government

program for mortgage assistance my  (former) mortgage blew us off until several months had passed

then our mortgage was sold to you guessed it PennyMac which is like starting all over again. 

we only have faith in daily endeavors not honesty or integrity.

Oct 16, 2009 01:52 PM #24
Scott K

Has anyone had an experience with doing a modification successfully with Penny Mac?

My loan was just transferred/bought by them from my other crappy service provider, MoreEquity.

And of course my loan is not Fannie or Freddie, but I still sometimes questions that, but that is another discussion. 

PennyMac says I make too much money, so I am considering withholding my mortgage payments to see what that will trigger and take the risk of hurting my credit.  Essentially the idiots at customer service said that is really my only option.

I just don't know how long it will take for someone to call me and offer help and if I can even get help. 

Its just unbelievable that I have to trash my credit to lower my interest rate of 8%!!!

Any insight to your experience would be helpful, thank you!!!

Oct 29, 2009 03:53 PM #25
Lance J

I have had the same problem with them. the first time i filled out all my paper work sent it in and waited about 6-8 weeks didn't hear a word, so i called and i was told they needed a document I said how long did you all know you needed a document because nobody called and ask for a new document. the point is if you don't call them they won't call you. So any how they modified my loan, like hell they raised it how in the hell is that helping out. So i called again they said they went off my income on my W-2 yeah they did they took the total earnings not the number I had to claim on my taxes in box 19 they took my total earnings and divided it by 12 giving them my gross monthly earning. Well that number included pay for funeral leave and sick time and personal and vacation time, also over-time which is hard and far between in getting any more in this economy. When I called and complain the service rep said someone would get back to me in 24 hours or so no one has called me to this day. I resubmitted all my paper work and then someone called and ask for my latest pay-stub that was over 2 weeks ago and i have yet to get a call back from the person who is working on my modification she flat out refuses to call me back answer my emails and when i called and ask for a manager they said they had no one ii could talk to but the customer service reps and when i told them who i was trying to get a hold of they said she normally doesn't take calls but she is listed all over my paper work as my loan modification adu\juster and if you can't talk to her what good is this. have you ever gone and applied for a loan and did not get to talk to the person who put you loan together. THE Feds need to look at this SCAM of a company I an\m sure this is not what the President meant by helping AMERICAN Families stay in there home, These crooks want to see the collapse of the American economy by creating foreclosures.

Mar 12, 2010 03:01 PM #26

I totally agree with the last 2 post- going throught he SAME thing!!! They told me the SAME things OMG!  They pulled my chain for me 4 months! And now dont want to help me! They are a HORRIBLE MORTGAGE COMPANY

May 12, 2010 11:47 AM #27
Tracy A.

OMG! I cant believe that there are more out there like me. I thought I was the only one being done in by these people. My loan was recently transferred to pennymac from citimortgage. i was already in the final stages of a modification loan when it was transferred and now the whole process has been thrown out the window and pennymac says i no longer qualify for the modification. worse part is now i am farther behind with payments than when i started. they want over 6,000 dollars to bring my account current. of course i dont have it..if i did i wouldnt have needed help to start with...ive been jerked around for over a year now with no relief in sight. may God have mercy on their souls.

Oct 19, 2010 09:57 AM #28

I have had a similar BAD experiences.  I was in the middle of a loan modification with Citi when they sold it to Penny Mac.  I was told I made too much money to qualify for a loan modification and my ONLY option was to pay $23,000 or I will face foreclosure.  I asked for an explanation of the $23,000 and they couldn't tell me.  I asked if they had any other programs to help homeowners and they don't.  Like Tracy A, if I had $23,000 I wouldn't be in this situation.  I'm scared and don't know what to do.

Nov 15, 2010 06:34 PM #29

PennyMac..created by those who started this crisis that led to so many homeless..who were bailed out...then bailed out leaving others to pay for their crimes.  It has become my belief that they just found another way to profit...another scheme.  How long before they end up rooming with Madoff?   PennyMac makes more money by foreclosing so it is not in their best interest to modify or short sale or help homeowners in any way shape or form.  They go through motions hoping homeowners give up and die...move out of their homes and simply cry uncle.  Pennymac bought our loan from Citi for "PENNIES ON THE DOLLAR" however even though Citi and Pennymac are willing to do this for each other, why can't they simply let us US citizens who have worked hard but lost those jobs, pay what we can afford, stay in our homes?  Why?  greed, abuse of power...

Dec 14, 2010 07:09 AM #30

I had the same thing happen to me too!   I was in the middle of a loan modification with Citi, and they sold my loan......same thing.....they said I made too much money and they didn't offer any modifications of their own...only HAMP.......what a rip off.....they need to be investigated....SOMEONE TELL OBAMA!!!    Yes they only paid pennies on the dollar, I heard .05 cents.    Even if it forecloses they made their money......HELP!!!

Apr 19, 2011 12:16 PM #31

I am in the same boat! Loan with Citi, in the last stages of modification, loan sold to Pennymac...told we make too much money.  We are being pushed into doing a short sale.  These people don't want to help any of us stay in our home.  they want us to do all the work, list the property, find a buyer and sell the house, pay them back and we walk away with nothing....if we don't they foreclose and my family will never be able to buy another home! This is a joke!! 


May 16, 2011 10:31 AM #32
Ray Rittenhouse

Congrats all,seem we were all hung out to dry.I did the samething with Citi and while going threw foreclosure bought by Penny Mack.This was in 2009.Had to file bankuptcy and in the mean time had to restart foreclosure all over again.Now have heard nothing,even as I gave up my home in bankuptcy?I get mail and they want to work out payment plan?What payment plan,I gave up the home?I have it in the court papers.They said they don't care I still owe???Well good luck,I moved and semi retired...Not even lawyers know what there doing or understand...Any ideas?

Apr 19, 2012 09:42 AM #33

FRAUD! FRAUD! FRAUD!  Pennymac is a frud mortgage company backed by Washington. Their CEO S.Kurland should be behind bars for what he has done to this country. They are Countrywide, without the big time criminal A. Mozzilo. He was charged with Mtg Fraud. and they want us to believe they are a true mortgage lending institute?. They forclose on so many mortgages they have no legal right to do so. Except that 99.9% of the people they forclose on walk away, while Pennymac steals their home. They don't own your MTG. guarenteed. Make them show you the deed. They cannot come up with it. they'll forge a piece of paper with the wrong contract number on it. because they don't own it.. They have a intimidating campaign, calling you a deaD BEAT. STAND UP TO THEM. WE ALL NEED TO UNITE AND HAVE THAT CRIMINAL IN PRISON. If me and you rob a bank we go to prison! But they are allowed to steal our homes credit dignity. and turn around and auction our homes for pennies on the dollar to investors, after Fanny, and Freddy mac pay them insurance on the homes. They are the demise of this country. PUT S. KURLAND IN PRISON. along with Moynahan from BofA.

Apr 10, 2013 10:14 AM #34
Glenn Chadwick
TMR - San Jose, CA

My first mortgage was cheap and from Countrywide and despite not having any debts, paying all our bills on time, and both my wife and I having good high paying jobs, Countrywide treated us like crap.  We refinanced with another company and all the mortgage companies after that have been fine.  Now with even higher incomes and a great credit history the mortgage on our third home was sold to Pennymac.  Ever since then, every few months over the past few years, we have received foreclose notices from Pennymac always due to what they say was some clerical error which reminded us of Countrywide but until reading this article I did not understand why.  It seems that both companies envision “restructure” as “foreclose” as their principle aim in buying loans.

Dec 03, 2016 11:42 AM #35
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