MOORPARK, CA—PennyMac Financial Services, Inc. has established a new division, PennyMac Commercial Real Estate Finance (PCREF). The business will focus on loans that finance multifamily and other commercial real estate with a typical value of under $10 million, with the planned acquisition and securitization of such loans by PennyMac Mortgage Investment Trust.

“I am excited about our entry into Commercial Real Estate Finance which complements PennyMac's existing businesses in residential mortgages and has the potential to deliver attractive returns for PFSI and PMT. The opportunity in this market is particularly attractive and fits well with the operational platform and organizational culture that distinguish PennyMac,” said Stanford Kurland, PennyMac Financial's chairman and CEO. “We have hired a dynamic team of highly experienced commercial mortgage bankers to lead this new initiative, and I am pleased to announce that Steve Skolnik, Kevin Portnoy and Bob Roades have joined the PennyMac team.”

Steve Skolnik joins us as chief commercial lending officer, and was most recently the CEO and Co-Founder of ReadyCap Commercial, LLC. Kevin Portnoy is joining as Executive Vice President, Commercial Lending, from Capital Crossing, LLC where he was Director of Capital Markets. Skolnik, Kevin Portnoy, and Bob Roades previously worked together at Aurora Bank/Lehman Brothers, originating, securitizing and servicing small balance commercial loans.

“Steve is a highly regarded mortgage executive whom I have known for years,” continued Mr. Kurland. “I am confident that this team will build a successful business in Commercial Real Estate Finance working closely with our existing management and the disciplined culture we have built at PennyMac.”

“Kevin, Bob and I are excited to be joining PennyMac and establishing a new business within a vibrant, growing enterprise,” Skolnik said. “Many of the attributes that have made PennyMac successful in the residential mortgage market are the same ones that are important for success in the small balance commercial market. With PennyMac's considerable capital and resources, we plan to launch a number of business channels in early 2015. PCREF will be originating through retail and conduit sales teams as well as acquiring legacy performing and non-performing pools of commercial loans.”