A press release on March 24, 2008 announced new Private National Mortgage Acceptance Company, LLC (PennyMac). There will be some interesting developments due to the senior management of the newly formed company because of positions held at Countrywide Home Loans.
Critics of PennyMac have questions regarding motives and opportunities for the newly formed company. Critics are concerned that some of the people managing PennyMac may have helped create the problem in the first place.
Stanford L. Kurand former President and Chief Operating Officer of Countrywide and David Spector, Managing Director of secondary markets of Countrywide.
The industry was shocked when heir apparent of Countrywide announced his departure in August of 2006. Research indicates that Kurand and Spector were packing their bags with the intent of departing Countrywide years before the exposure and crash of subprime. It appeared his intention was to fulfill his contractual obligation and depart Countrywide. Kurand was consistently exercising his stock options and selling stock three years prior to his departure from Countrywide in 2006.
The number of executive officers, risk assessment, and senior management to depart long held positions to different companies is many, and the reasons varied. I wonder if Kurand will be another victim of subprime, not because he helped create it, but because he disagreed with the direction lending was taking.
Frequently disclosure is restricted, and the true reason for the change is never given. A press release issued for the change draws from a list of approved reasons. The list may include personal reasons, health, or retirement plans. The individuals are not allowed to say they disagree with new policies or products implemented.