Categorized | Finance and Mortgage

PennyMac Mortgage Investment Trust Has High Expectations

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Stanford Kurland, president of PennyMac Mortgage Investment Trust, has high expectations regarding the lending volumes of the company. The former Countrywide Financial Corp. president believes that the company’s home lending will triple this quarter. In July alone, the company hit $50 million in lending, and they are anticipating a fourth quarter number around $200 million.

The company mainly deals with soured home loans, but is looking to expand. Kurland believes that there are great opportunities ahead, as many of the banking giants are stepping away from intermediary practices. The change in the size of mortgages that can be guaranteed by Fannie Mae and Freddie Mac is also playing a role in the creation of opportunities for the company.

PennyMac Mortgage Investment Trust and other companies are taking advantage, as while some of the major financial institutions like Bank of America and JPMorgan Chase are looking to reduce the amount of outstanding debt that they manage. The two companies made the decision in October to put an end to their practices of wholesale mortgage lending, which involved the funding of debt arranged by brokers.

These decisions to cut back on their role in the home lending process will only mean more potential revenue for the small firms, such as PennyMac, Carrington Mortgage Services LLC, and Caliber Funding LLC. These lending firms are now looking to accelerate their growth strategy, and increase their originations of mortgages through other lenders in the process. They see that there is a growing necessity for new market intermediaries, and they are looking to take upon that role

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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