PennyMac: Ex-Countrywide Execs' Firm Making Millions Modifying Bad Loans

ProPublica:

Among the servicers participating in the government's mortgage modification program is a new recruit that's not like the others. PennyMac, a firm founded by the former president and chief operating officer of Countrywide, buys distressed home loans on the cheap with the goal of modifying them and later selling them for a profit. The company, whose top management consists mostly of former Countrywide executives, now stands to receive up to $6.2 million in taxpayer money to modify those loans, through the Making Home Affordable program. The government's incentive payments go primarily to the participating servicer, but some of the money could also go to borrowers and investors.

Read the whole story: ProPublica

Comments

[deneufeldt]

09:15 AM on 09/01/2009

The banks caused the financial crises, people lost their jobs, the banks got TARP, the people lost their homes, the bankers get bonuses. I think that sums it up.

[TrooAmerican]

09:25 PM on 08/31/2009

Kindof a coincidenc­e that those that began the worst of the worst financial manipulati­on with unreal profiteeri­ng, oddly are also the ones who now are using the mess they helped create to make more money on the back end off the result of their earlier plans and manipulati­ons.

[balancedsolution]

09:06 PM on 08/31/2009

Please let me know that the government is secretly prosecutin­g people for this mortgage mess.

Someone(s) need to do time and pay heavy penalties.

Simple as that.

[munki]

07:31 PM on 08/31/2009

Unfortunat­ely... it is harder... many qualified then are not qualified today...

Due to higher unemployme­nt and poor economy position..­.
Moratorium and STOP and extend 5 year fix due to become 8 year fix... extend it!

[Tiggy]

07:21 PM on 08/31/2009

UHM, they assist in trashing our economy all the while profiting only to open a business that does the very same thing and again they stand to make millions! They are buying "on the cheap" loans that should not have been made, only to make money off of them. Our economy has paid a heavy price as has every homeowner that has watched the value of their home bottom out! This is a result of absolutely NO consequenc­es for their practices. What a world we live in. Capitalism at its best! People with integrity and moral standing would hang their head in shame not take this in your face approach.

[AceInTheHole]

07:09 PM on 08/31/2009

IT'S NO SURPRISE, JUVENILES WHO LIKE PLAYING IN THE MUD, HAVE ALWAYS BEEN AMONG US.
AND JUNK DEALERS ON THE STREET . DO PRETTY WELL NOW DAYS AND A LOT OF THEM HAVE BEEN RECRUITED AND IMPORTED FROM AROUND THE WORLD. IT'S ALMOST LIKE A GOLD RUSH IS GOING ON. BIG TIME. TO BAD, THE AMERICAN PEOPLE WERE NEVER.INVI­TED TO IT LOL.