We just got another reminder of the current undying optimism in the real estate space in the form of mortgage operator PennyMac Financial Services and its IPO filing.
PennyMac got its start back in 2008, during the dark days of the financial crisis. The company went on to build a full-featured mortgage platform allowing for the production and servicing of residential mortgages.
The mastermind behind PennyMac is Stanford Kurland, who spent 27 years at Countrywide Financial — the same Countrywide bought out by Bank of America (NYSE:BAC) in 2008 — in numerous positions, including director and president, until he left in 2006.
When Kurland formed PennyMac, he was able to get massive financial backing from BlackRock (NYSE:BLK) and HC Partners, and he has put that money to work. For the first nine months of 2012, net income soared by 427% to $60.5 million. According to the S-1: “We believe that there is significant growth potential yet to be tapped within our existing businesses and also through our expansion into adjacent related businesses.”
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.