Weak Debut for Former Countrywide Execs’ New Company

August 3, 2009

By Angie Moreschi:

Money SqueezeSo much for reaping big profits from the housing crisis they helped create.  PennyMac, the company launched by former executives at Countrywide Financial Corp, made a weak debut on the New York Stock Exchange. The company’s initial public offering was not up to expectations. The IPO raised $320 million, $80 million less than planned.

Still, it leaves a bit of a chill in the air to realize the past record of PennyMac’s execs didn’t impact the sale even more.  Countrywide’s ultra-aggressive lending practices and exotic loans are widely recognized as a major cause of the nation’s housing crisis.

Former Countrywide President and Chief Operating Officer Stanford Kurland and several of his co-horts decided to take a shot at making money off the misery their company’s loans created.  The company’s goal is to profit by acquiring delinquent mortgages from banks at bargain basement prices and then turn around and restructure them. Forgive us if we don’t wish them good luck.