Strategic Partners

PennyMac is supported by two leading financial institutions that serve as strategic partners, enhance PennyMac's relationships with global financial institutions and provide valuable input in structuring PennyMac's activities.

Founded in 1988, BlackRock is one of the world's largest publicly traded investment management firms and manages assets on behalf of institutions and individuals worldwide through a variety of equity, fixed income, cash management and alternative investment products. In addition, a growing number of institutional investors use BlackRock Solutions investment system, risk management and financial advisory services.

BlackRock is a leading advisor to financial institutions with mortgage businesses, having advised clients on valuing, managing and assessing strategic options for distressed mortgage portfolios and working closely with 5 of the top 10 U.S. mortgage servicers. In the field of mortgage-backed securities, they pioneered the structured securities markets including Collateralized Mortgage Obligations and Asset Backed Securities. BlackRock values and analyzes more than $1 trillion in mortgages on a daily basis.

BlackRock is independent in ownership and governance, with no single majority stockholder and a majority of independent directors. Headquartered in New York City, as of June 30, 2008 the firm has approximately 1.428 trillion in Assets Under Management with 5,700 employees in 19 countries and a major presence in key global markets, including the U.S., Europe, Asia, Australia and the Middle East.

About Highfields Capital

Highfields Capital, founded in 1998, is a value-oriented investment firm focused on achieving long-term capital appreciation by investing in public and private companies. It invests its capital worldwide, across a wide variety of industries, security types and geographies and has made substantial investments in mortgage and real estate securities. For further information, see www.highfieldscapital.com.

Highfields' investors are predominately world-renowned university and college endowments, charitable and philanthropic foundations and other institutional and private investors. Over 95% of Highfields' original investors continue to be investors in the Highfields funds today.

Their investments typically reflect long-term holdings in companies with sound business models and capable and motivated management teams. Recent non-public financial services investments by Highfields and its principals include HighVista Strategies, Cyrus Re, Symetra Financial and Capital Source, Inc. Highfields is headquartered in Boston, Massachusetts.