UPDATE 1-PennyMac Trust reports net loss in first 2 months

* PennyMac reports net loss in first two months

* Says invested $69.5 mln in mortgage-backed securities

NEW YORK, Nov 5 (Reuters) - PennyMac Mortgage Investment Trust (PMT.N: Quote, Profile, Research), created by former Countrywide Financial Corp executives to buy distressed home loans, reported a net loss in its first two months of operations.

The company said on Thursday its initial investments produced total revenues of $816,000, offset by management fees and other expenses, resulting in a net loss of $730,000, or 4 cents per share, for the period from Aug. 4, when it completed its initial public offering, to Sept. 30.

PennyMac said it invested about $69.5 million of the proceeds from its equity offerings in residential mortgage-backed securities having an aggregate unpaid principal balance of approximately $72.9 million.

The real estate investment trust, based in Calabasas, California, acquired these securities pending its anticipated reinvestment of the proceeds in suitable pools of mortgage loans or longer-lived, higher yielding mortgage-backed securities.

"In PMT's first two months of operations, our manager reviewed residential whole loan and securities portfolios with cumulative unpaid principal balances of over $6.9 billion and bid on several of those portfolios at levels consistent with our yield requirements," Chairman and Chief Executive Officer Stanford Kurland said in a statement.

"While some market participants have been willing to accept lower yields and bid more aggressively, we still believe that it is in the best interest of our shareholders over the long term to remain patient in order to maximize the returns from our long-term investment opportunities."

Kurland is a former president and chief operating officer of Countrywide, and at least 10 top PennyMac officials are alumni of the same company, which was once the largest U.S. mortgage lender. Its aggressive lending practices are widely considered to have been a major cause of the housing crisis. (Reporting by Steve James; Editing by Gary Hill)