Although Countrywide's seemingly-impressive numbers massively enriched its executives in 2005 and 2006, the mortgage lender's notoriously lax standards are often cited as a contributor to the housing boom. Stanford L. Kurland, who was the President and Chief Operating Officer at Countrywide until 2006, didn't leave his entrepreneurial streak behind when the left the company -- he is now targeting the distressed mortgage loan market by raising funds for the Private National Mortgage Acceptance Co., or "Pennymac." Pennymac is set to begin trading this week under the ticker "PMT," after it raises approximately $400 million from its IPO.
Although the IPO prospectus cites Pennymac's management as having "extensive experience in the residential mortgage business," Kurland's Countrywide connection isn't without controversy. According to SEC filings analyzed by DailyFinance, he sold over $145 million in Countrywide stock in the six months leading up to his departure from the company. Last month, the SEC brought securities fraud and insider trading charges against Countrywide executives, including CEO Angelo Mozilo and COO David Sambol, who replaced Kurland.