NEW YORK (AP) - Investment management firms BlackRock Inc. and Highfields
Capital Management said Monday they are sponsoring a new company that will
acquire and restructure distressed mortgages.
The new company, Private National Mortgage Acceptance Co., will be run by
Stanford Kurland. Kurland served as president and chief operating officer of
Countrywide Financial Corp., the nation's largest mortgage lender, until 2006.
Private National Mortgage, also known as PennyMac, will invest in and
service resident mortgages on behalf of private investors. PennyMac will aim to
avoid home foreclosures and instead restructure loans so borrowers can maintain
payments.
Mortgage delinquency and default rates have risen rapidly since the middle
of 2007, leading to a growing number of foreclosures.
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