The former Countrywide Financial Corp., whose subprime loans helped
start the nation's foreclosure crisis, made hundreds of discount loans
to buy influence with members of Congress, congressional staff, top
government officials and executives of troubled mortgage giant Fannie
Mae, according to a House report.
The report, obtained by The Associated Press, said that the discounts
-- from January 1996 to June 2008, were not only aimed at gaining
influence for the company but to help mortgage giant Fannie Mae.
Countrywide's business depended largely on Fannie, which at the time was
trying to fend off more government regulation but eventually had to
come under government control.
Fannie was responsible for purchasing a large volume of Countrywide's
subprime mortgages.
Countrywide was taken over by Bank of America in
January 2008, relieving the financial services industry and regulators
from the messy task of cleaning up the bankruptcy of a company that was
servicing 9 million U.S. home loans worth $1.5 trillion at a time when
the nation faced a widening credit crisis, massive foreclosures and an
economic downturn.
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
Funny thing is...I worked for MetLife Home Mortgages here in Salisbury. They hired one of Countrywides big executives to lead them to the promise land. MetLife Home Mortgages closed their doors for good back in March! Talking about stupid! Hundreds of millions lost down the drain....
ReplyDeleteChris Dodd's name should be prominent in this investigation.
ReplyDeleteAnd none of them will see jail time!
ReplyDeleteThis is why the buying of politicans by special interest must be stopped.
ReplyDelete712, it won't be. Largely because the partisan ideologues turn a blind eye to their own side while going on witch hunts against the other
ReplyDeleteWho are these congressmen(women). Force their resignation. We're so sick of them getting away with everything. Why isn't something done ON THE SPOT. Boom! You're outta here!
ReplyDeleteSpecial interests aren't the culprits, Congress is. Clean house in November.
ReplyDeleteAnd every liberal will emphatically deny that this had anything to do with the collapse.
ReplyDeleteJust like Barney Frank said "all is well with Freddie and Fannie"