Investigation Shows More VIP Loans Made To Senate And GSE Employees

Posted by Orb Staff on July 21, 2010 No Comments
Categories : Residential Mortgage

e committee investigation has revealed that Countrywide made more loans to government-sponsored enterprise employees through its controversial VIP mortgage program than previously disclosed. In total, 153 loans were extended to Fannie Mae employees and 20 loans were made to Freddie Mac employees through the defunct program, multiple news outlets are reporting. Details of the investigation, performed by the House Committee on Oversight and Government Reform, were included in a letter from the committee's ranking member, Rep. Darrell Issa, R-Calif., to the Federal Housing Finance Agency (FHFA), The Wall Street Journal reports. Last October, the committee subpoenaed Bank of America, which acquired the subprime giant in 2008, for documents regarding the lender's controversial program. Several lawmakers – including the committee's chairman, Rep. Edolphus Towns, D-N.Y., and Sens. Chris Dodd, D-Conn., and Kent Conrad, D-N.D. – have previously been identified as recipients of VIP loans. A separate letter from Issa, dated July 13 and sent to the Senate Ethics Committee, shows that Countrywide extended 30 VIP loans to borrowers who identified their place of employment as either the Senate, ‘U.S. Senator’ or the office of U.S. Senator Robert Bennett, R-Utah. Many of the loans were processed between 2002 and 2003, Issa says. ‘New documents obtained by the Oversight Committee in the course of [the] investigation show that Countrywide may have targeted Senate employees for special VIP treatment,’ Issa states in his letter, a [link=http://online.wsj.com/public/resources/documents/cwide-0714doc.pdf]copy[/link] of which has been posted on the WSJ website. SOURCE: [link=http://online.wsj.com/public/resources/documents/cwide-0714doc.pdf]The Wall Street Journal

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