Pennymac Hit With Cease and Desist Order

December 6, 2010 No Comments »

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Pennymac, a company literally borne out of the mortgage crisis, was hit with a cease and desist order by the Georgia Department of Banking and Finance late last week.

The company, which is headed by former Countrywide CFO and COO Stanford L. Kurland, acquires loans from banks and mortgage lenders looking to reduce their mortgage exposure.

They also originate their own loans, including jumbo mortgages up to $2 million, and sell mortgage rates and real estate owned (foreclosed homes).

But apparently they weren’t working with a proper license…

“These Orders were issued by the Department after it obtained evidence that PennyMac Corp. and PennyMac Loan Services, LLC engaged in residential mortgage brokering/lending activities without a license or under an applicable exemption,” the Georgia Department of Banking and Finance said in a statement.

“Pursuant to Georgia law, it is prohibited for any person knowingly to purchase, sell, or transfer a mortgage loan from or to an entity that is not licensed or exempt from licensing or registration provisions to engage in residential mortgage brokering or lending.”

Doesn’t sound like a good start for a company whose management team includes 10 former Countrywide employees, although it does seem to be business as usual in the mortgage biz.

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