WASHINGTON — Executives at Countrywide Financial, one of the biggest names of the housing boom, routinely violated internal company policies to provide below-market rates on home loans to the politically connected and powerful, according to a congressional report to be released today.
Loan documents show how far Countrywide went to give loans to VIPs through a program known as “Friends of Angelo,” named for the company’s chief executive, Angelo Mozilo, according to congressional investigators. Executives manually overrode the company’s computer software that warned that certain additional fees would be necessary to accommodate below-market rates.
That was in addition to lengthy discussions on the merits of giving a special deal to a particular borrower, missives from Mozilo to employees telling them to give VIPs breaks and other activities.
A report by House Republicans on the investigation was obtained by The Washington Post in advance of its release.
Recipients of special loans included senators and other officials, prominent businessmen, congressional aides, celebrities and journalists, including Sen. Kent Conrad, D-N.D., Sen. Christopher Dodd, D-Conn., former U.N. ambassador Richard Holbrooke, former Fannie Mae chief executive James Johnson, former Department of Housing and Urban Development Secretary Alphonso Jackson, Jackson’s daughter and others.
Most recipients of VIP loans have said in news accounts that they had no idea they were getting a deal. But the report states Countrywide “clearly” indicated to borrowers they were getting deals, usually by including business cards indicating the loan came from a VIP unit.
