Countrywide's VIP Loan Unit "Targeted" Fannie Mae Employees
by CBS News Investigative Correspondent Sharyl Attkisson
***Read Updated Story with Statements
New documents released by the House Committee on Oversight shed shocking new light on the cozy partnership between Countrywide Financial Corporation and Fannie Mae -- which left taxpayers holding the bag for billions in subprime loans. =http:>
The documents show that dozens of Fannie Mae employees accepted VIP loans and VIP treatment from Countrywide.
According to investigators, Countrywide's VIP treatment could range from special handling of customer phone calls to discounted loan rates worth thousands of dollars on a loan.
Rep. Darrell Issa is asking investigators to see whether the VIP loans violate conduct codes of the government sponsored mortgage funder. According to Issa, employees may have benefitted personally from the risky relationship forged between Countrywide and Fannie Mae, even as the system was falling apart.
Previously named recipients of VIP loans from Countrywide included Senator Christopher Dodd (D-CT) and Senator Kent Conrad. (D-ND) After a yearlong investigation, a Senate ethics committee cleared Sens. Dodd and Conrad saying it found "no substantial credible evidence" that they broke Senate gift rules.
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New Twist in Countrywide Loan Probe
The documents come from Countrywide's successor, Bank of America, which has now produced 44,000 documents under subpoena for the VIP program records. In all, they show 153 Countrywide VIP loans to borrowers employed by Fannie Mae. Some borrowers accepted multiple VIP loans from Countrywide.
According to the documents, the number of loans to Fannie Mae workers spiked twice during Countrywide's VIP program: in 1998 as Countrywide was negotiating a volume discount with Fannie Mae - the House Oversight Committee says that was followed by the exclusive agreement the two arrived at in 1999 to sell Fannie Mae billions of dollars in mortgages for what amounted to a volume discount.
According to the documents, the second spike in Countrywide loans to Fannie Mae workers happened in 2001-2003 on the leading edge of the mortgage boom - from late 2002 and 2004 - when Countrywide expanded its VIP loan unit.
Specifically, around the time that the partners were negotiating their exclusive partnership in 1999, documents indicate Countrywide CEO Angelo Mozilo gave Fannie Mae CEO Jim Johnson preferential treatment on more than $10 million in personal loans.
The documents show Countrywide also gave VIP loans to other senior leadership of Fannie Mae including:
--Then-CEO Franklin Raines, who succeeded Mr. Johnson on Jan 1, 1999.
--Then-Fannie Mae Vice Chairman Jamie Gorelick
--Then-Fannie Mae COO Daniel Mudd
Key figures, including Franklin Raines, have all said they did not get special treatment and/or were not aware they received any special treatment connected to their Countrywide VIP loans.=http:>
Republican House Oversight Report on Countrywide's "Friends of Angelo" Program
Republican House Oversight Report on the Housing Crisis
Read the New Documents Below
CBS News has obtained the following list of then-Fannie Mae employees whose names have been turned over to investigators as having received VIP loans from Countrywide: Sandra Adams: Fannie Mae Account Associate Nitirwork Armstrong: Fannie Mae Director Gregg Ayres: Fannie Mae Customer Acct Manager Jeffrey Baker: Fannie Mae Business Analyst Ingrid Beckles: Freddie Mac VP Default Mgmt Cherry Billings: Fannie Mae Asst to CEO Christine Buckley: Fannie Mae Sr Assistant Sharon Canavan: Fannie Mae Govt Relations/Lobbyist Delynn Conley: Fannie Mae Underwriter Carla Corpuz: Fannie Mae Senior Underwriter Tanguy De Carbonnieres: Fannie Mae Legal Counsel Bernard Deane: Fannie Mae Director Mollie Dougherty: Fannie Mae Sr Business Manager Roy Downey: Fannie Mae Director Cynthia Fatica: Fannie Mae Legal Counsel Jamie Gorelick: Fannie Mae Vice Chair Lizbeth Grant: Fannie Mae Director Tec/Secondary Mkt Greta Hamilton: Fannie Mae Manager/Home Loans Lester Handy: Fannie Mae Consultant James Johnson: Fannie Mae Chairman and CEO Jack King Fannie: Mae Manager Karen King Fannie: Mae Credit Risk manager Gerald Langbauer: Freddie Mac VP Sales Derek Lowe Fannie: Mae Technician/Home Loans Mary Lee Moriarity: Fannie Mae Sr Underwriter Consult/Lending Daniel Mudd: Fannie Mae Vice Chair and COO Paulette Porter: Fannie Mae Sr Proj Mgr/Mtg Securities Alan Quirion: Freddie Mac Director John Radwanski: Freddie Mac Sr Port Direc Franklin Raines: Fannie Mae Chairman and CEO Robin Ramsay: Fannie Mae Customer Acct Manager Rebecca Rosena: Fannie Mae Credit Risk manager Irwin Rosenstein: Fannie Mae Ass. General Counsel Robert Sanborn: Fannie Mae Vice President William Shirreffs: Fannie Mae Director Joseph Silva: Fannie Mae Servicing Portfolio Manager Donna Simpson: Fannie Mae Customer Acct Manager Michelle Sorensen: Fannie Mae Sr Business An/Mortgage Mary Ann Staley: Fannie Mae Marketing Dir Deborah Kay: Tretler Fannie Mae VP Risk Management Kirk Willison: Freddie Mac VP Trade Relations/Dir Industry Relations David Yoon: Fannie Mae Acct Associate
