Did BlackRock Appoint Kurland to Head New Mortgage Co on Basis of Experience?

(NewsVisual, powered by IntellectSpace) -- In response to the ongoing dislocation in the U.S. mortgage market, BlackRock Inc (NYSE: BLK) and privately-held Highfields Capital Management jointly announced on Monday that they were appointing Stanford L Kurland as Chairman and Chief Executive Officer of Private National Mortgage Acceptance Company, LLC (PennyMac).

PennyMac is a newly formed company by BlackRock and Highfields that will specialize in acquiring and restructuring distressed residential mortgage loans.

In particular, the new company will raise capital from private investors, acquire loans from financial institutions seeking to reduce their mortgage exposures, and seek to create value for both borrowers and investors through distinctive loan servicing, BlackRock said in its statement.

PennyMac's strategy is to help borrowers avoid foreclosures.  Instead, the company will provide them with the option to restructure their loans so they can continue paying and stay in their homes, the BlackRock statement added.

“Stan Kurland and his team have enormous talent and experience in the mortgage business, making them well equipped to develop effective solutions for sellers of mortgage assets and homeowners alike,” said BlackRock CEO/Chairman Laurence D Fink in the statement.

Given the complexity of the current mortgage industry as well as the severity of the ongoing crisis in the market, BlackRock and Highfields must have chosen Mr Kurland after a great deal of deliberation and vetting.

Countrywide CEO Mozilo Gives up $37.5 Million Severance

(NewsVisual, powered by Intellectspace) -- Facing harsh criticism surrounding the credit crisis, Countrywide Financial Corporation (NYSE: CFC) CEO Angelo R Mozilo has agreed to forgo $37.5 million in severance pay and other fees that would reaped as a result of the mortgage lender’s impending sale to Bank of America (NYSE: BAC).

Losses, defaults and lawsuits have Countrywide struggling, though the company’s fall hasn’t stopped Mozilo from being ranked as one of the highest paid US executives. The dismal status of Countrywide has led many in the political realm, including US presidential candidate Senator Hillary Rodham Clinton to publicly question Mozilo’s hefty salary.

An IntellectSpace Knowledge Map offers insight into Mozilo’s past and present, through his noteworthy roles as a corporate executive and his ties to non-corporate entities. In addition to the success he has reaped at Countrywide, which he founded in 1969 and has since built to become a major global enterprise, Mozilo was the President and Vice Chairman of Indymac Bancorp, and until recently he was a Director for Home Depot Inc.

Despite 3Q Results, Common Connections Could Help Countrywide Make a Turnaround

Even though it posted negative earnings in its third quarter, the first in 25 years, Countrywide Financial is optimistic about its prospects for the upcoming quarter (see article from Intermex Power). We created an IntellectSpace Knowledge Map of Countrywide’s Board of Directors and their current corporate connections in the hopes of identifying the leadership experience that could help the company regain its successful earnings track record (Note: the information contained and presented in Knowledge Maps is public information from the Securities and Exchange Commission of the United States of America.

As illustrated in this Knowledge Map, nearly all of Countrywide’s Directors currently hold additional corporate leadership positions at multiple companies. Robert T Parry is currently a Director at both Janus Capital Group and Paccar Inc, and Jeffrey M Cunningham holds Executive and Board positions at companies that include Newsmarkets, Sapient and New England Ventures. Other Countrywide Directors with current management ties to multiple corporate entities are Harley W Snyder, Oscar P Robertson, Keith P Russell, Henry G Cisneros and Martin R Melone.