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.
A report by Bloomberg, which quotes a regulatory filing, says PennyMac will buy some of those securities.
A spokeswoman for the company declined to comment. "We're in our quiet period," she said. PennyMac hopes to go public some time over the next few months.
