Would you buy a used loan from these guys?

Rachel Beck, the national business columnist for The Associated Press, writes about PennyMac, a business previously mentioned on this blog, and its proposed public offering.

"Countrywide Financial placed itself at the epicenter of the housing crisis by making far too many risky loans to homeowners who ultimately couldn't afford them. Those missteps cost CEO Angelo Mozilo his job when the lender was taken over by Bank of America a year ago at a fire sale price."

"Mozilo is now spending most of his time dealing with the dozens of lawsuits naming him as a defendant, but his one-time No. 2 executive and a team of Countrywide alumni are still in the game — shopping around a new business called PennyMac that buys up distressed mortgages and modifies borrowers' loans."

"So, the same people who helped create the housing mess are now trying to make money cleaning it up. As off-putting as that sounds, there's a certain logic to it."

Beck details the history of PennyMac's founder and just how the business is structured to maximize profits. Will investors bite? "PennyMac's leadership could help fix the economy, or stuff they own pockets. Let's hope capitalism doesn't rule."

Of course, the full story is yet to be written. But you can read Rachel Beck's coverage here.

(We are proud to add that Rachel Beck is the daughter of one our firm's clients.)

Vested Title Inc.
648 Newark Avenue, P.O. Box 6453, Jersey City, NJ 07306
Tel 201-656-9220 - Fax 201-656-4506
E-mail vti@vested.com - www.vested.com

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