* PennyMac is led by ex-Countrywide president Stanford
* Shares to be listed on the New York Stock Exchange
* Citigroup, BofA Merrill Lynch among lead underwriters
By Avik Das
Feb 7 Residential mortgage loan provider
PennyMac Financial Services, led by former Countrywide Financial
Corp president Stanford Kurland, filed with U.S. regulators to
raise up to $287.5 million in an initial public offering of its
Citigroup, Bank of America Merrill Lynch, Credit Suisse and
Goldman Sachs & Co are the lead underwriters to the IPO,
PennyMac Financial said in a preliminary prospectus filed with
the U.S Securities and Exchange Commission.
"Certain of our officers, including Stanford L. Kurland, our
chairman and chief executive officer, are former employees of
Countrywide Financial Corp, which has been the subject of
various investigations and lawsuits and ongoing negative
publicity," PennyMac Financial, an affiliate of PennyMac
Mortgage Investment Trust, said in the filing.
Countrywide Financial was acquired by Bank of America
in 2008 at the height of the financial crisis.
Countrywide Financial was one of the largest subprime mortgage
lenders in the United States.
Bank of America agreed to pay more than $11 billion last
month to resolve claims from investors who want the bank to buy
back loans that Countrywide sold to them during the housing
boom, many of which later went bad.
Kurland-led PennyMac Mortgage's shares have risen almost 50
percent since last February as it rode the upsurge in mortgage
REIT and homebuilding stocks.
"Kurland has probably outgrown the disaster that happened
with Countrywide in 2007," Francis Gaskins, editor of
IPOdesktop.com, told Reuters.
The filing did not reveal how many shares PennyMac Financial
planned to sell or their expected price.
The company, which intends to list its common stock on the
New York Stock Exchange, is backed by BlackRock Mortgage
Ventures LLC and HC Partners LLC.
The U.S. housing market, which was badly hit by the
financial crisis of 2008, has been showing signs of recovery
amid rising rents, record low mortgage rates and higher selling
This has prompted many small homebuilders to tap the stock
market to seize on a housing supply crunch. Tri Pointe Homes
, based in regions among those worst hit by a housing
market slump, became the first U.S. homebuilder to go public in
about 10 years.
Taylor Morrison Home Corp filed with U.S. regulators in
December to raise up to $250 million in an IPO.
The revival in the housing market is expected to shore up
the fortunes of residential mortgage providers such as PennyMac
The company reported a profit of $60.4 million on revenue of
$157.3 million for the nine months ended September.
The amount of money a company says it plans to raise in its
first IPO filings is used to calculate registration fees. The
final size of the IPO could be different.