Miss Countrywide? It's back, writes Steve Gandel, in the form of PennyMac (PMT), formed 3 years...

Miss Countrywide? It's back, writes Steve Gandel, in the form of PennyMac (PMT), formed 3 years ago by Countrywide alums. Last month, PennyMac opened its first retail branch. Heading the office is Stephen Brandt, who reportedly ran Countrywide's "Friends of Angelo" program. "There's free money on the table and you don't have to work that hard to get it," says a Stifel analyst covering PMT.

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  • jmf3210
    , contributor
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    Over the past few months I've been reducing my mREIT holdings and rotating into PMT and RWT. I like the dividend streams and opportunistic positioning for "recovery, or new normal, however you see things.
    I have also been watching OZM and FIG. I believe all of these companies are opportunistic in an area of real estate "recovery" (the new reality).
    IN more mainstream recovery, WFC and USB would round out my finance arm of real estate.
    I believe all of these areas have yet to be fully overvalued by retail investors.
    I am intrigued by PMT, but wary. The management knows where the bodies are buried. I have no trouble with PMT doing re-finances, re-packaging and SRO servicing. They're nimble and aggressive where traditional banks are slow and lumbering. No surprise there.
    I have no trouble with them even doing some sub-prime lending. I believe I believe the pendulum has swung too far in the spectrum of risk and safety.
    Though, PNMAC may be where too much money is going from a public investor perspective. These guys (PMT management, Blackrock and Highfields) are well capable of sleight of hand in pocketing fees. probably all legal, though maybe not entirely above-board.
    I wish I had more visibility on this. These guys may be among those who need careful watching.
    RWT, by contrast, seems straight on delving into loans, servicing and RMBS activity The big boys have pulled back and out...as a percent of market share...leaving a field for the taking
    I find the stock a bit over-priced for a bargain, though. In my world, a six-percent dividend is bottom-rung.
    3 Oct 2012, 07:25 PM Reply Like
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