Countrywide Financial, who on their website claim to be “a trusted leader for over 30 years in the home loan industry” is alive and well. Part of Bank of America, who is getting bail-out money, is apparently writing loans and looking for new business.

The new kid on the block, Pennymac, is buying bad loans from lenders so they can service them. They are “a specialty asset management firm created to address the dislocations in the U.S. mortgage market.” What a deal! Make a bad loan at Countrywide, sell it and when it starts to go south, Pennymac buys it for pennies on the dollar.

Stanford L. Kurland

The CEO at Pennymac, Stanford L. Kurland, was Chief Financial Officer and then Chief Operating Officer, at Countrywide.

The Chief Investment Officer, David Spector, also worked for Countrywide “where he was responsible for secondary marketing, including interest rate risk management and related functions, directing loan trading, pricing, hedging, and servicing.”

And so, the beat goes on, the beat goes on.

[youtube:http://www.youtube.com/watch?v=bEZB4taSEoA]

I love this. Especially the participation of people on the floor. If you mortgaged your home you need to pay it or file for bankruptcy. Your neighbor does not want to help you!

Did you know that the people who walk away from mortgages will still owe the money? True. The bank will eventually sell the home and deduct what they receive from the amount the original owner owed. The original owner will still be on the line for the balance. And for those who seem to want to trash the house as they leave, they will owe for any clean-up to make the house marketable.