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?