Posted by PrestoPundit on 09/26/2008

sweetheart loan from Countrywide while an executive at Fannie Mae.

So why don’t we have some prosecutions here, already?  Quotable:

Countrywide was the nation’s biggest mortgage firm and was the
biggest supplier of mortgage securities to Fannie Mae under an
exclusive “strategic agreement” reached by the two firms in July 1999.
Under the deal, Countywide agreed to deliver a large portion of
Fannie’s annual loan volume in exchange for special financing terms.

Together, the two firms took a series of steps in recent years that
loosened their underwriting standards, including several reductions in
requirements for documentation of borrower incomes that critics say led
to a wave of fraud. The U.S. financial system buckled this month under
the weight of hundreds of billions in mortgage loans to borrowers who
can’t pay them back.

While Countrywide was developing a closer working relationship with
Fannie Mae, the company also had created a special path to handle loan
applications from influential figures. The “Friends of Angelo” program
channeled loan applications from celebrities, public figures and sports
stars — often singled out by Mr. Mozilo — to a department where the
borrowers received special treatment, sometimes including lower
interest rates and a reduction in fees.

UPDATE:  A grand jury is investigating.


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