* PennyMac is led by ex-Countrywide president Stanford Kurland
* 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 common stock.
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 prices.
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 Financial.
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.
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