Investment funds managed by PNMAC Capital Management LLC – an affiliate of Private National Mortgage Acceptance Co. LLC (PennyMac) – have completed the purchase of $558 million in residential mortgage loans from the Federal Deposit Insurance Corp. (FDIC), which was the receiver for First National Bank of Nevada.
The transaction is the first structured sale of a non-construction residential mortgage loan portfolio by the FDIC to date. First National Bank of Nevada, Reno, Nev., was closed by the Office of the Comptroller of the Currency on July 25, 2008, and the FDIC was named receiver.
‘We are excited about investing in and managing mortgages in this unique transaction where we share in the economics with the FDIC,’ says Countrywide's former President Stanford L. Kurland, now PennyMac's chairman and CEO. ‘We believe that PennyMac's approach of strategically managing troubled loans, combined with our best-in-class mortgage servicing, will create significant value for homeowners as well as our investors.’
Mortgage servicing of the loan portfolio will be performed by PennyMac Loan Services LLC. PennyMac will apply the FDIC's loan modification programs and its proprietary mortgage restructuring initiatives in order to address the issues of troubled borrowers.