WASHINGTON - The one-time Countrywide Financial Corp. - whose subprime loans helped beginning the nation's foreclosure predicament - done hundreds of bonus loans to purchase change with members of Congress, congressional staff, tip supervision officials and management team of plagued housing loan hulk Fannie Mae, according to a House inform performed by The Associated Press.
The inform mentioned the discounts - from January 1996 to June 2008 - were not usually directed at attainment change is to company, but moreover to help housing loan hulk Fannie Mae. Countrywide's business depended mostly on Fannie, that at the time was perplexing to deflect off more supervision law but finally had to advance beneath supervision control.
Fannie was accountable for purchasing a considerable volume of Countrywide's subprime mortgages. Countrywide was taken over by Bank of America in January 2008.
The House Oversight and Government Reform Committee declared 6 stream and one-time members of Congress who received bonus loans, together with one-time senior manager bend officials and 3 Fannie Mae arch executives.
"Documents and be evidence of performed by the cabinet uncover the celebrity loan module was a apparatus used by Countrywide to erect organization to help the poor with lawmakers and other people positioned to gain the company," the inform said.
Some of the discounts were systematic privately by one-time Countrywide arch senior manager Angelo Mozilo. The recipients were well known as "Friends of Angelo."