Some might find this almost ironic. A group of former Countrywide executives, led by former CFO Stanford Kurland, have formed a new firm PennyMac, which aims to profit from distressed mortgage securities. PennyMac aims to raise $750 million in a stock offering.

Presumably, the funds will be used to invest in troubled mortgages. According to the AP, PennyMac will then approach borrowers in an event to keep them paying. If the loans rise in value, they would resell them at a profit. It aims to take advantage of the PPIP to raise funds. We'll likely see a lot of these funds formed as people eye PPIP funds. It remains to be seen how much money they can make, but with government involvement, the risks are certainly worth it. 

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