Not only will PennyMac be servicing nonperforming mortgages for Credit Suisse — which is buying the loans from a troubled American International Group unit — but the vulture fund/servicer has agreed to buy $170 million in notes that will be issued from the deal.

Earlier this week it was revealed that CS agreed to buy $1.6 billion of subprime and Alt-A whole loans from AIG's American General Financial Services unit with PennyMac servicing the loans. CS plans to issue securities backed by the troubled loans.

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