[Update 1: clarifies PennyMac filed for an IPO; yet to offer shares.] PennyMac Mortgage Investment Trust, a distressed asset firm founded by former Countrywide Financial Corp. President Stanford Kurland, filed Friday to issue an upcoming initial public offering. The firm hopes to raise up to $750m with the IPO. The firm, which is part of the Private National Mortgage Acceptance Company (PennyMac), will be formed as real estate investment trust, with the purpose of investing in distressed home mortgages. It plans to modify loans’ terms, and make a profit by selling those loans after their credit quality improves. “We believe that there are unique, current market opportunities to acquire distressed mortgage loans and mortgage-related assets at significant discounts to their unpaid principal balances,” the firm wrote in its filing. The firm’s expected sources of investment opportunities include the Federal Deposit Insurance Corporation’s liquidations of failed bank portfolios, the sale of bank loans through the Public-Private Investment Partnership program and direct purchases of loans from a number of institutions. PennyMac’s IPO will be underwritten by Merrill Lynch, Deutsche Bank and Credit Suisse, according to filed documents. Strategic partners, BlackRock and hedge fund Highfields Capital, also agree to back PennyMac. The filing did not give details regarding the timing of the IPO or the number of shares that will be offered. And at the time of publishing, PennyMac did not return HousingWire’s inquiries regarding this matter. Kurland left Countrywide in 2006. The lender went under last year and Bank of America took over. PennyMac now services assets similar to those that played a hand in fate of Countrywide and also purchases mortgages from other financial firms. The firm has requested to be listed on the New York Stock Exchange under the symbol PMT. Write to Kelly Curran.

More: