New information indicates that 27 former employees of Fannie Mae received a total of 153 subsidized, low-cost loans through Countrywide’s “Friends of Angelo” VIP loan program designed, from appearances, to “buy friends in critical government and industry positions affecting the company’s business interests”[1]. A probe into the relationship between Fannie Mae and Countrywide is ongoing, and some members of the Oversight and Government Reform Committee, including Darrell Issa (R-CA), believe that the case cannot be closed until there has been a criminal investigation and probably indictments against Countrywide officials.
It should be noted that at this time, the Senate Ethics Committee has cleared Christopher Dodd and Kent Conrad, both recipients of VIP loans, of any wrongdoing and has declared that they did not receive preferential treatment. The fact that their loans have been titled “Countrywide VIP loans” seems to imply preferential treatment, but the Senate Ethics Committee has stated that “no evidence could be found that they received preferential terms or conditions on the four Countrywide mortgages between them.”
What do you think should be done about Fannie Mae’s involvement with Countrywide? Does it even matter?
Thank you for reading! Your comments and questions are welcomed below.
[1] http://www.dsnews.com/articles/house-investigation-uncovers-153-vip-countrywide-loans-to-fannie-execs-2010-07-22
