A division of PennyMac Mortgage Investment Trust said it has hired a former top executive from Bank of America to run its fledgling correspondent lending division.

The hiring of B of A’s Doug Jones is effective immediately PennyMac said Wednesday.

As PennyMac’s chief correspondent lending officer, Jones “will lead and grow” the firm’s third party lending effort which falls under an affiliate, the Private National Mortgage Acceptance Co.

A company spokesman told ASR's sister publication, National Mortgage News that although correspondent purchase volumes have been small, the Calabasas-based PennyMac hopes to change that by hiring Jones who served as head of retail sales and institutional mortgage services at B of A.

In 1Q PNMAC bought $20 million in closed mortgages from other lenders, but in April it acquired $16 million in just four weeks’ time.

Its acquisitions include GSE and jumbo loans.

The publicly traded PennyMac is best known in the industry as an investor and servicer of nonperforming mortgages.

In a statement company CEO Stan Kurland said, “PennyMac has enormous potential to bridge the significant gaps that exist in the origination market, which will only grow with the expansion of the prime non-agency market as the agencies’ conforming loan limits are reduced.”

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.