Clinton Camp Brushes Off Manager's Mortgage Ties(Maggie Williams)

WASHINGTON – Hillary Clinton spends considerable time on the campaign trail bemoaning unscrupulous lenders who have left millions of Americans scrambling to keep their homes but all the while her campaign manager, Margaret “Maggie” Williams, has sat on the board of one of the nation’s once-largest and now-bankrupt sub-prime mortgage lenders.

Clinton Communications Director Howard Wolfson told FOXNews.com late Sunday that Williams, a longtime Clinton ally, didn’t join Clinton’s Democratic presidential campaign as a volunteer until after Delta Financial Corporation — for which Williams is a director — went bankrupt in December 2007.

From newsday.com/news/elections/ny-ushill0330,0,1290059.story

[snip]

She [Williams] was recruited by former New York City Deputy Mayor Bill Lynch... in the wake of state and federal predatory lending probes that resulted in a $12 million payout to borrowers... Her hiring coincided with stepped-up Delta outreach efforts in minority communities, where the company made a large number of its loans...

[snip]

A photo of Lynch is available at http://www.sdmackpictures.com/gallery/3162256_52te7/2/174008644_Tigpm#174008644. Turns out he’s black. Not that there’s anything wrong with that, of course, but the current financial-market hoo-hah seems to center on bad loans made to minority recipients who might have failed conventional creditworthiness tests. The great metastasis of today’s troublesome loans seemed to follow after a spate of legal and regulatory assaults on financial institutions doing business in those communities, with a concomitant influx of minority executives and board members like, well, Maggie Williams.

For example, mesh the report above with the paean to political-correctness-uber-alles that was the speech by Countrywide’s chairman (reposted below) and Elliot Spitzer’s activities as recounted in the following snippet.

So now we find that Hillary’s (black, woman) campaign manager was hired “coincident” with the crackdown on allegedly racist lending practices by ambitious prosecutors like the very-political Spitzer.

How much of the “sub-prime mortgage crisis” can we lay at the door of political correctness and race-huckster shakedown of lenders?

Two items follow:

(1) An astonishing speech, which I’ve posted before, by the Chairman of Countrywide Home Loans, the epicenter of the “sub-prime crisis” (so called because of the falling-dominos failure of thousands of mortgages made to poorly qualified vendors. In this speech the Chairman embraces the politically-correct notion that lenders need to be more accommodating of minority borrowers with poor credit risks.

(2) New: A legal agreement between Countrywide and no less than Elliott Spitzer which documents a legal assault by Spitzer. It suggests that Countrywide was under pressure by Spitzer for allegedly racist lending practices that had resulted in minorities receiving higher-cost loans. A quick read suggests: Countrywide denies wrongdoing, points out that Spitzer’s analysis excluded credit risk factors (e.g., ignored the possibility that black/hispanic borrowers might not, as a class, have as good a credit history as other ethnicities), promises to obey the law and be audited for compliance, and so forth.

Included in this filing are also interesting forms for borrowers, such as the very intriguing one sent to certain past customers which states:

===>

Our records show that, in 2004, you obtained a “Reduced Documentation” loan from Countrywide. “Reduced Documentation” means that you were not required to provide documents such as tax returns, pay stubs or bank records to verify the amount of income and/or assets you had at the time of application. Instead, your loan was approved based on the amount of income and/or assets you stated on your application. A “Reduced Documentation” loan is appropriate for borrowers who might have difficulty documenting their income or assets, or who do not desire to document their income or assets. However, borrowers typically are charged more (through a higher rate of interest or points) for a “Reduced Documentation” loan than they would be charged if they fully documented their income and assets. Countrywide is conducting a review of some of the “Reduced Documentation” loans we made in 2004 to make sure our customers who chose such loans understood the consequence, in terms of higher price, of choosing to forego full documentation of income and assets....

<===

Apparently, the Spitzer pressure was occurring at about the time the Chairman of Countrywide was going around making that astonishing speech. One wonders if the Chairman’s paean to political correctness—-and the flood of bad loans that followed—-was a reaction to Spitzer’s legal assault and intended to keep the voracious “progressive” prosecutor at bay...

The bottom line, as the above passage documents, is that Countrywide was making loans to folks who would not (or more likely could not) document their qualification. This is the very definition of a risky loan, and Countrywide was making plenty of them.

The galling thing is that this sorry episode—an entirely predictable consequence of bankers abrogating their fiduciary duty in the pursuit of political correctness—is being promoted for Bush-bashing and America-bashing. It’s politics, in other words. Sam Zell agrees: http://www.cnbc.com/id/23350846/site/14081545 ...I’ll take his analysis over any collection of presstitute pundits, any day. Frankly, in this episode the media and politicians are doing their level best to keep people uninformed and to demagog the “crisis” for political gain. That speech by the chairman of Countrywide tells you all you need to know about the mess, including that its consequences will be painful (as we’re seeing) and temporary (as we’ll see).

My comment: High finance and soft-headedness should never cohabitate!

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http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/02-04-2003/0001885208&EDATE=

Countrywide’s Chairman Mozilo Delivers John T. Dunlop Lecture

- Leader Calls on Mortgage and Housing Industries to Address Homeownership Gap -

WASHINGTON, Feb. 4 /PRNewswire-FirstCall/ — Angelo R. Mozilo, chairman, CEO and president of Countrywide Financial Corporation, Inc., (NYSE: CFC), urged mortgage professionals, housing experts and others to address the obstacles that create an “intolerably wide” gap between minority and lower-income homeownership and what is classified as white homeownership. Mozilo delivered the John T. Dunlop Lecture sponsored by the Joint Center for Housing Studies of Harvard University and the National Housing Endowment on Tuesday night.

In his presentation entitled “The American Dream of Homeownership: From Cliche to Mission,” Mozilo told his audience, “Expanding the American dream of homeownership must continue to be our mission, not solely for the purpose of benefiting Corporate America, but more importantly, to make our country a better place.” He went on to outline bold suggestions that the mortgage industry and others should consider to overcome barriers to homeownership.

These include elimination of mortgage down payment requirements, educational efforts to make the home loan process easier to comprehend, and reduction and streamlining of loan application documentation.

Mozilo drew upon his 50 years of experience in the mortgage industry and cited Countrywide’s successful efforts to increase homeownership opportunities for minority and lower-income borrowers. From these perspectives, he identified and commented on several structural obstacles within residential finance business practices that adversely impact home-buying among these constituencies:

— The loan underwriting process: “We must look for ways to capture ‘alternative’ payment histories and to properly factor in cultural differences in credit, income and spending habits, so that we can say ‘yes’ to borrowers who have the ability and willingness to make their mortgage payments. Credit scores must not be the dominant factor for assessing risk. Non-traditional factors such as rent and utility payment history should be imbedded in the automated underwriting process.”

— Loan performance measurement: “Let’s focus on the majority of people who are successfully managing their loans and living their dream. Let’s not be obsessed by the few that fail, but instead be encouraged by the vast majority who succeed. Let’s look for every possible reason to approve applicants, not to reject them.”

— Counter-productive regulatory efforts: “With respect to predatory lending, enough of the mania. Let’s be mindful that reputable lenders cannot operate under hundreds of laws that only have one thing in common — the word ‘predatory.’ Subprime lending and predatory lending are not the same thing. Brushing them with one broad stroke only wipes out the opportunities for homeownership for too many deserving low-income and minority home buyers.”

Mozilo spoke of the importance of homeownership to families, communities and the nation. “In addition to increasing personal wealth and adding to our national economy, creating more homeownership opportunities and narrowing the homeownership gap increases social capital. In other words, it ties families, neighborhoods and communities together,” he explained.

Citing several studies, he noted that children living in owned homes have higher math and reading achievement levels, and homeowners are more likely than renters to belong to civic groups, such as parent-teacher organizations.

In conclusion, Mozilo said, “Housing is critical to our nation’s welfare and to our communities’ well-being. Let’s make sure that the American dream of Homeownership is never a cliche, and always our cause, and always our steadfast mission. We have the resources. Together, as partners, let’s show the will.”

The John T. Dunlop Lecture was held at the National Housing Center in Washington, DC. The Dunlop Lecture series honors a distinguished member of the Harvard community in recognizing the contributions of emeritus professor John T. Dunlop and his distinguished career at the University, in government, and in the private sector. Dunlop played a key role in establishing the Policy Advisory Board of the Joint Center for Housing Studies. Mozilo serves on that board, as well as the Board of Trustees of the National Housing Endowment, and has been inducted into the National Association of Home Builders Hall of Fame.

Founded in 1969, Countrywide Financial Corporation, Inc. (formerly Countrywide Credit Industries, Inc.) is a member of the S&P 500, Fortune 500 and Forbes 500. Countrywide, through its family of companies, provides mortgage banking and diversified financial services in domestic and international markets. Consumer businesses include mortgages, insurance and other financial products. Business-to-business activities encompass capital markets, transaction processing and insurance. The company is headquartered in Calabasas, California, and has 30,000 employees with more than 500 offices nationwide. For more information about the company, visit Countrywide’s Web site at http://www.countrywide.com

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http://www.buckleykolar.com/publications/documents/CountrywideAssurance.pdf

-1-
ATTORNEY GENERAL OF THE STATE OF NEW YORK
CIVIL RIGHTS BUREAU
————————————————————————————————————x
) ASSURANCE OF
In the Matter of: ) DISCONTINUANCE
) PURSUANT TO
COUNTRYWIDE HOME LOANS, INC. ) EXECUTIVE LAW 63(15)
)
-————————————————————————————————————x
WHEREAS, pursuant to the provisions of Section 63(12) of the Executive Law, Eliot
Spitzer, Attorney General of the State of New York, has made an inquiry into the policies,
procedures, and practices of Countrywide Home Loans, Inc. (“Countrywide”) regarding its
residential mortgage lending within the State of New York;
WHEREAS, Countrywide is a California-based financial institution licensed by the New
York State Banking Department to make residential mortgage loans within the State of New
York;
WHEREAS, Countrywide regularly makes residential mortgage loans to residents of the
State of New York;
WHEREAS, in 2004, Countrywide originated nearly 20,000 residential mortgage loans in
connection with property located within the State of New York, about 4,500 of which were made
to black and Hispanic customers;
WHEREAS, the Office of the Attorney General (“OAG”) and Countrywide share the
common goal of assuring that all individuals who apply to Countrywide for mortgage loans
receive equal treatment regardless of their race or ethnicity;
WHEREAS, Countrywide has long had fair lending compliance protocols, policies and
procedures in place, has confirmed its strong commitment to fair lending, and has cooperated
fully with the OAG’s investigation of this matter;
WHEREAS, Countrywide expressly denies any wrongdoing or liability in this matter,
strongly disputes the OAG’s conclusions and findings in this regard, and maintains that it has
complied and will continue to comply with state and federal legal fair lending requirements;
WHEREAS, the parties herein desire to obviate further investigation or potential
litigation, and it is expressly understood that, with respect to the OAG’s investigation, this is a
compromise settlement entered into solely for the purposes of avoiding the expense and
inconvenience of further investigation and potential litigation;
-2-
WHEREAS, in consideration of the covenants and understandings set forth herein and
intending to be legally bound thereby, Countrywide and the OAG hereby agree as follows:
I.
DEFINITIONS
1.1 “Anonymous Audit” means a paired testing process in which similarly-situated testers of
different races and/or ethnicities pose as loan applicants and the treatment and services
they receive are compared for disparities.
1.2 “APR” means Annual Percentage Rate, or the cost of the credit to the consumer as
defined in 12 C.F.R. § 226.22.
1.3 “Agreement” means this Assurance of Discontinuance.
1.4 “Broker Compensation” means all remuneration received by a broker from the customer
or Countrywide in connection with a Countrywide loan, including but not limited to yield
spread premiums, origination fees, and processing fees, but excluding any fees passed
through to third parties, such as appraisal and credit report fees.
1.5 “Countrywide” means Countrywide Home Loans, Inc. and all of its officers, employees,
agents, and representatives.
1.6 “Effective Date” means the date this Agreement is executed by the parties hereto.
1.7 “HMDA” means the federal Home Mortgage Disclosure Act and its implementing
regulation.
1.8 “Loan” refers to any residential mortgage loan originated by Countrywide that is secured
by a lien against property located within the State of New York and is required to be
reported under HMDA.
1.9 “Loan Officer” means any Countrywide retail employee whose responsibilities include
generating Loans on behalf of Countywide, including all loan officers and account
executives.
1.10 “MSA” means Metropolitan Statistical Area.
1.11 “Nontraditional Mortgage Product” means a residential loan product that allows the
customer to defer repayment of principal or interest, including but not limited to an
interest-only mortgage loan product and a negative amortization mortgage loan product.
1.12 “Pricing Exception” means a departure from the rate sheet pricing for a loan.
-3-
1.13 “Reduced Documentation Product” means a loan product/underwriting feature whereby
the customer provides less-than-full documentation of assets and/or income.
1.14 “Underwriting Exception” means any exception to Countrywide’s standards with respect
to loan parameters or borrower qualifications that may affect the price of a loan.
1.15 The use of the singular form of any word includes the plural and vice versa.
1.16 “And” and “Or” shall be construed conjunctively or disjunctively as necessary to make
the meaning inclusive rather than exclusive.
II.
ATTORNEY GENERAL’S INVESTIGATION AND FINDINGS
2.1 In or around April 2005, Countrywide disclosed demographic and other data about its
2004 loans as required under HMDA. Countrywide’s HMDA data, which did not take
into account certain credit risk factors, revealed that black and Hispanic customers in
New York State were more likely to receive higher-cost Loans (i.e., Loans where the
APR surpassed the yield on Treasury securities of comparable maturity by a certain
threshold) than white customers in 2004. While less than 12% of Countrywide’s Loans
to white customers were higher-cost, more than 15% of Loans to Hispanic customers and
27% of Loans to black customers fell into this category.
2.2 On the basis of these disparities, the OAG initiated an investigation into Countrywide’s
residential lending practices in New York State during 2004.
2.3 As part of its investigation, the OAG reviewed Countrywide’s lending policies and
procedures and conducted subpoena hearings of senior Countrywide officials. The OAG
also conducted statistical analyses of Countrywide’s loan-level data for 2004 Loans in an
effort to determine whether there were racial and ethnic disparities in loan pricing, after
taking into account legitimate credit risk factors (such as credit score or loan-to-value
ratio) that may affect the price of a loan and were maintained in Countrywide’s electronic
databases.
2.4 Those statistical analyses revealed racial and ethnic disparities that the OAG concluded
could support a claim under state and federal laws, such as New York Executive Law
§ 296-a, that prohibit discrimination in the extension of credit. Specifically, the OAG
found that, on average, after controlling for such race-and-ethnicity-neutral factors, black
and Hispanic customers paid more for Loans than white customers in Countrywide’s
prime retail and wholesale channels. This was due, in part, to racial and ethnic
differences in the discretionary components of pricing, principally Pricing Exceptions in
the retail sector and Broker Compensation in the wholesale sector.
-4-
THEREFORE, Countrywide offers this Agreement as a compromise and in settlement
of the violations alleged by the OAG, and the OAG accepts the specific undertakings made
herein pursuant to Executive Law § 63(15) in lieu of commencing a civil action.
III.
COMPLIANCE WITH THE LAW
3.1 Countrywide will comply with the obligations, terms, and conditions of Section 296-a of
the New York State Human Rights Law, N.Y. Exec. Law § 296-a, and Section 805 of the
Fair Housing Act, 42 U.S.C. § 3605.
IV.
CONSUMER EDUCATION PROGRAM
4.1 Within 120 days of the Effective Date, Countrywide will develop a comprehensive
Consumer Education Program (“CEP”) that will inform consumers at no cost about the
home buying and mortgage application process. The CEP will not in any way involve
the promotion or sale of Countrywide’s own products. The CEP will include clear and
meaningful instruction on the following topics:
(a) the steps involved in the home buying process;
(b) the steps involved in applying for a mortgage loan and the type of information
typically required as part of that process;
(c) the role a person’s credit history plays in the mortgage loan application process;
(d) the types of loan products and features available (e.g., fixed rate, adjustable rate,
Reduced Documentation Products, Nontraditional Mortgage Products);
(e) the advantages and disadvantages of such products and features, including their
relative cost in dollar terms (e.g., the typical dollar cost, up front or over the life
of a loan, of obtaining a Reduced Documentation Product rather than a full
documentation product);
(f) the fact that interest rates and fees are often negotiable;
(g) the role of mortgage brokers and how they are compensated (e.g., yield spread
premiums, broker points, and origination and other processing fees);
(h) Pricing Exceptions, their impact on the cost of a loan, and the fact that such
variances are negotiable;
(i) the importance of comparison shopping when seeking a loan; and
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(j) questions to ask and guidelines to follow to obtain the most affordable and
appropriate loan for the individual.
4.2 Consumer Education Seminars
(a) The CEP will include a series of consumer education seminars to be held in
communities with significant black and/or Hispanic populations throughout the
State of New York. The seminars will cover the subject matters referenced in
Section 4.1. If the consumer education seminars are held in a community with a
significant Spanish-speaking population, the seminars will be offered in Spanish
as well as English.
(b) Countrywide will develop a written curriculum for these seminars that will be
provided to the OAG for review and will be subject to the OAG’s approval, which
will not be unreasonably withheld.
(c) Countrywide will retain a qualified organization or consultant (“Seminar
Provider”) to organize and conduct these seminars. The Seminar Provider will
have appropriate training in and be knowledgeable of the subject matters to be
covered in the seminars. The selection of the Seminar Provider will be subject to
the OAG’s approval, which will not be unreasonably withheld. Countrywide
employees will not participate in the seminars.
(d) Countrywide will prepare consumer educational materials to be distributed at the
seminars (“Educational Materials”). The Educational Materials will be subject to
the OAG’s approval, which will not be unreasonably withheld. These materials
will not reference Countrywide or its loan products, and will be available in
Spanish and English.
(e) During the duration of this Agreement, there will be at least 15 seminars held
during each calendar year following the Effective Date. During each calendar
year, at least five seminars will be held within New York City, at least five
seminars will be held within Nassau and Suffolk Counties, and at least five
seminars will be held elsewhere in New York State.
(f) Attendance at each seminar will be recorded and tracked.
(g) Seminar attendees will be encouraged to complete written surveys, which will
solicit their feedback on the utility and effectiveness of the seminar. Countrywide
and the Seminar Provider will periodically review these surveys, and use the
results to improve the program on an ongoing basis.
-6-
(h) Countywide will conduct an advertising campaign to inform the public about
upcoming seminars. The advertising will be conducted through a combination of
print media, direct mailing, and/or radio. The advertising will target black and
Hispanic consumers, and will specify if a seminar will be offered in Spanish.
(i) Countrywide will advertise upcoming seminars on a consumer education website
to be created by Countrywide.
(j) Nothing herein shall preclude Countrywide from identifying itself as the sponsor
of the seminars, or from responding to a seminar attendee’s inquiry for location or
contact information for Countrywide.
4.3 Telephone Counseling Services
(a) As part of the CEP, Countrywide will provide a no-cost one-on-one telephone
counseling services program (“TCSP”) that offers independent, individualized
counseling to all callers on the subject matters referenced in Section 4.1. The
counseling provided pursuant to the TCSP will include budget counseling and
credit analysis.
(b) Countrywide will devote sufficient resources and staff to the TCSP to ensure that
it effectively responds to each caller’s inquiries in a prompt and comprehensive
manner. TCSP staff may not include any Countrywide sales staff. Countrywide
will ensure that TCSP staff are appropriately trained and qualified to provide
high-quality mortgage counseling services. Counseling services will be available
from 11am – 8 pm EST.
(c) The TCSP will be accessible through toll-free numbers that are distinct from any
other Countrywide phone number. The TCSP will offer counseling services in
Spanish as well as English.
(d) Each time TCSP staff provide counseling services to a caller, they must document
the following: (1) the date and time of the call; (2) the nature of the inquiry; and
(3) the nature of the counseling and information provided to the caller.
(e) Countywide will conduct an advertising campaign to inform the public about the
TCSP and the toll-free TCSP number. The advertising will be conducted through
a combination of print media, direct mailing, and/or radio. The advertising will
target black and Hispanic consumers, and will specify that counseling services are
available in Spanish. The advertising will clearly state that the TCSP is designed
to provide independent, individualized mortgage counseling services.
(f) Countrywide will advertise the TCSP and the toll-free TCSP number on a
consumer education website to be created by Countrywide.
-7-
(g) Countrywide will conduct periodic test telephone calls to monitor the quality and
timeliness of services provided by TCSP staff. Countrywide will conduct at least
five test calls each quarter, which will be placed on different days and at different
times of the day. Countrywide will maintain records reflecting the results of these
test calls, including an evaluation of the staff member’s response to the inquiry.
(h) Nothing herein shall preclude TCSP staff from responding to a caller’s inquiry for
location or contact information for Countrywide.
4.4 Countrywide will allocate and spend no less than $3 million during the duration of this
Agreement to develop, implement, and advertise the various components of the CEP.
4.5 Community Events. Countrywide staff will periodically attend and offer consumer
education at events and programs held in communities with significant black and/or
Hispanic populations throughout the State of New York. Countrywide will include the
Educational Materials with any other materials it distributes at such events and programs.
V.
INDEPENDENT CONSULTANT
5.1 Countrywide will engage an individual, who has extensive experience in developing
statistical models and conducting regression analyses that are designed to test for racial
and/or ethnic disparities in loan pricing, to serve as an independent consultant for
purposes of this Agreement (the “Independent Consultant” or “Consultant”). The
selection of the Independent Consultant will be subject to the OAG’s approval, which
will not be unreasonably withheld. The Independent Consultant will review, provide
consultation on, and approve the proposed statistical and other models, methodologies,
and analyses that Countrywide is required to develop and implement pursuant to Article
VI below. Within 90 days of the Effective Date, Countrywide will submit such proposed
models, methodologies, and analyses to the Independent Consultant.
5.2 The Independent Consultant’s duties will be as follows:
(a) examining the proposed models, methodologies and analyses and any related
assumptions to ensure that they are reasonable, as defined by Section 5.4;
(b) reviewing and approving the level(s) of analysis that should be performed (e.g.,
State, MSA, branch, Loan Officer, broker) and ensuring that the methodology
selected is appropriate for each level;
(c) discussing the proposed models, methodologies, and analyses with Countrywide
and proposing any necessary modifications thereto;
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(d) assisting Countrywide to identify what should qualify as a material disparity for
purposes of the monitoring analyses described in Article VI;
(e) reviewing and approving the product placement remedial procedures and
methodologies contemplated in Section 6.3(c) below; and
(f) periodically reviewing the regression and other analyses required under Article VI
to ensure that they are being conducted in accordance with the specifications
approved by the Independent Consultant.
5.3 Within 30 days of receiving the proposed models, methodologies, and analyses, the
Independent Consultant will determine whether such models, methodologies, and
analyses and any related assumptions are reasonable, as defined by Section 5.4. The
Independent Consultant will provide a written certification to Countrywide and the OAG
setting forth his or her conclusion and the basis therefore. If the Independent Consultant
determines that any aspect of the proposed models, methodologies, and analyses is not
reasonable, as defined in Section 5.4, the Independent Consultant will provide
Countrywide and the OAG with a written statement specifying proposed changes to
ensure that the analyses are conducted in an effective and appropriate manner.
Countrywide will have an opportunity to comment on and discuss these proposed
changes with the Independent Consultant, and then will promptly adopt and implement
any changes deemed necessary by the Independent Consultant after these discussions.
5.4 For purposes of Articles V and VI, proposed models, methodologies, and analyses will be
deemed reasonable if they are reasonably calculated (a) to statistically measure racial
and/or ethnic disparities in the identified areas, and (b) to ensure that potential racial
and/or ethnic disparities are not masked as result of the use of any factor, approach, or
assumption. Nothing in this Agreement will require Countrywide to violate any
requirements imposed upon the company by its federal regulators.
5.5 The Independent Consultant will have access to review any data, documents, or other
material that the Independent Consultant reasonably believes is necessary to carry out his
or her duties under this Agreement.
5.6 If at any time during the duration of this Agreement Countrywide determines it is
necessary to replace the Independent Consultant, it will provide the OAG with written
notification of the reasons for this determination and the identity of the proposed
replacement Consultant. The selection of the replacement Consultant will be subject to
the OAG’s approval, which will not be unreasonably withheld.
-9-
VI.
MONITORING NEW YORK LOANS
6.1 Discretionary Pricing. The OAG acknowledges that Countrywide currently has a series
of existing models, methodologies, and analyses for examining whether racial and/or
ethnic disparities exist in Pricing Exceptions and Broker Compensation. Countrywide
will modify such models, methodologies, and analyses as necessary to perform the
analyses required by this Section in connection with the Loans. All such models,
methodologies and analyses will be performed within Countrywide’s four divisions
(currently referred to as Consumer Markets Division, Full Spectrum Lending, Wholesale
Lending Division and Specialty Lending Group), respectively, and nothing herein shall
require any analysis or review across divisions.
(a) Pricing Exceptions.
(1) Countrywide will perform on a periodic basis (but no less than twice a
year) Pricing Exception regression analyses to examine:
(A) whether there are material disparities in Pricing Exceptions for
black and Hispanic customers as compared to similarly-situated
non-Hispanic white customers; and
(B) whether retail branches or Loan Officers with a significant black or
Hispanic customer base have materially higher overages or
materially lower underages than retail branches or Loan Officers
with a predominantly non-Hispanic white and otherwise similarlysituated
customer base within the same MSA.
(2) Countrywide will perform Pricing Exception regression analyses at all
levels (e.g., State, MSA, branch, Loan Officer) approved by the
Independent Consultant.
(3) If any of the Pricing Exception analyses described in Section 6.1(a)(1)
reveal material disparities for black or Hispanic customers as compared to
similarly-situated non-Hispanic white customers, Countrywide will take
appropriate corrective action, including measures such as verbal or written
counseling; retraining; enhanced scrutiny of the Loans originated by the
branch and/or Loan Officer; developing a mitigation plan; limiting or
eliminating Pricing Exception discretion; and termination of employment.
The specific corrective action pursued will depend, among other things, on
the size and scope of the disparity and its persistence; the extent of the
problem throughout the State; and the prior conduct of the branch or Loan
Officer involved.
-10-
(4) Second-Level Reviews. Countrywide will identify any retail branch or
Loan Officer for which the Pricing Exception regression analyses
described in Section 6.1(a)(1)(A) reveal more than 65 Basis Points of
disparity for black or Hispanic customers as compared to similarlysituated
non-Hispanic white customers. Upon identification, such retail
branch or Loan Officer will be subject to a second-level review, pursuant
to which the Director of Fair Lending, or his or her designee, will review,
prior to closing, the loan file of each future black or Hispanic customer
serviced by that branch or Loan Officer. The review will determine
whether the proposed Pricing Exception appears reasonable in the
particular case. The review will continue as long as there are disparities of
65 Basis Points or more. For purposes of this section, “Basis Points” are
calculated as a percentage of the loan amount; 100 Basis Points equals one
percent of the loan amount.
(b) Broker Compensation.
(1) Countrywide will perform on a periodic basis (but no less than twice a
year) Broker Compensation regression analyses to examine:
(A) whether there are material disparities in Broker Compensation for
black and Hispanic customers as compared to similarly-situated
non-Hispanic white customers; and
(B) whether brokers with a significant black or Hispanic customer base
have materially higher Broker Compensation than brokers with a
predominantly non-Hispanic white and otherwise similarlysituated
customer base within the same MSA.
(2) Countrywide will perform the Broker Compensation regression analyses
at the State and broker levels. When performing Broker Compensation
regression analyses at the broker level, Countrywide will review a
broker’s Loans over a 6-month period unless the broker did not deliver a
sufficient number of Loans to Countrywide during that period to permit a
probative Broker Compensation regression analysis. In such case,
Countrywide will review the broker’s Loans over a 12-month or longer
period if such an extended review period would permit a probative Broker
Compensation regression analysis. Countrywide’s methodology for
determining whether a broker received a sufficient number of Loans to
permit a probative Broker Compensation regression analysis will be
subject to the review and approval of the Independent Consultant.
(3) If any of the Broker Compensation analyses described in Section 6.1(b)(1)
reveal material disparities, Countrywide will take appropriate corrective
-11-
action, including measures such as verbal or written counseling;
mandatory fair lending training; enhanced scrutiny of the broker’s Loans;
reducing Broker Compensation caps; and severing all or part of the broker
relationship. The specific corrective action pursued will depend, among
other things, on the size and scope of the disparity and its persistence; the
extent of the problem throughout the State; and the prior conduct of the
broker involved.
(4) Countrywide will identify any broker for whom the Broker Compensation
regression analyses described in Section 6.1(b)(1)(A) reveal more than 65
Basis Points of disparity for black or Hispanic customers as compared to
similarly-situated non-Hispanic white customers (“High Disparity
Broker”). For purposes of this section, “Basis Points” are calculated as a
percentage of the loan amount; 100 Basis Points equals one percent of the
loan amount.
(A) Countrywide will advise High Disparity Brokers in writing of the
disparity and the fact that Countrywide may terminate all or part of
the broker relationship if the disparity persists.
(B) Unless the High Disparity Broker can demonstrate that (1) the
disparity was due to a legitimate, non-discriminatory reason or (2)
the broker has taken appropriate remedial actions to address the
cause of disparity, Countrywide will take the following steps:
(i) promptly reduce the Broker Compensation cap for the High
Disparity Broker by an amount that is at least 20% of the
standard cap; and
(ii) terminate all or part of the broker relationship if the Broker
Compensation regression analysis for that broker during the
next review period reveals more than 65 Basis Points of
disparity for black or Hispanic customers as compared to
similarly-situated non-Hispanic white customers.
Countrywide promptly will advise the OAG in writing any
time it decides not to take the aforementioned remedial
steps with respect to a High Disparity Broker. Such notice
will identify the broker and will explain the reasons for
Countrywide’s decision.
6.2 Underwriting Exceptions. Countrywide will develop and implement procedures within
each of its divisions to track and monitor Underwriting Exceptions to ensure that they are
granted in a non-discriminatory manner. Countrywide has procedures and databases to
capture Underwriting Exceptions, and will modify such procedures and databases as
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necessary to perform the analyses required by this Section in connection with the Loans.
(a) Countrywide will require any Underwriting Exception to be recorded
electronically or in the customer’s loan file, along with the reason why the
exception was made. Countrywide will further develop a system for classifying
Underwriting Exceptions by type and tracking the frequency with which each
type of exception is granted to non-Hispanic white, black, and Hispanic
customers.
(b) Countrywide will develop and perform on a periodic basis (but no less than
annually) regression and other analyses to determine whether there are material
disparities in the granting of any category of Underwriting Exception to black or
Hispanic customers as compared to similarly-situated non-Hispanic white
customers.
(c) If the Underwriting Exception analyses described in Section 6.2(b) reveal
material disparities, Countrywide will take appropriate corrective action,
including measures such as counseling and retraining; establishing more objective
criteria for granting particular exceptions; eliminating discretion for particular
Underwriting Exceptions; and discipline. The specific corrective action pursued
will depend, among other things, on the size and scope of the disparity and its
persistence and the extent of the problem throughout the State.
6.3 Product Placement.
(a) Countrywide will develop and perform on a periodic basis (but no less than
annually) regression and other analyses to determine whether black and Hispanic
customers with prime credit disproportionately receive subprime or Alt-A Loan
products as compared to similarly-situated non-Hispanic white customers. Such
analyses may not control for documentation type (i.e., no income/asset, stated
income/stated asset, fast and easy, etc.) unless and until Countrywide has fully
implemented the procedures set forth in Article VII regarding disclosures for
Reduced Documentation Products.
(b) If the product placement analyses described in Section 6.3(a) reveal material
disparities for black or Hispanic customers as compared to similarly-situated non-
Hispanic white customers, Countrywide will take appropriate corrective action to
ensure that such disparities do not recur, including measures such as retraining
and counseling; enhanced scrutiny of loan files of prime credit black or Hispanic
applicants; imposing additional product disclosure obligations; discipline and
termination. The specific corrective action pursued will depend, among other
things, on the size and scope of the disparity and its persistence; the extent of the
problem throughout the State; and the prior conduct of any branch, Loan Officer,
or broker involved.
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(c) Countrywide will also develop procedures to (1) identify whether any specific
black or Hispanic customers were improperly given a higher-cost subprime or
Alt-A Loan and (2) compensate such customers for the higher costs they incurred
as a result of the improper product placement. Countrywide will submit its
proposed remedial procedures and methodologies to the Independent Consultant
for review and approval, and will implement procedures that the Consultant
agrees are reasonable for accomplishing the intended goals.
(d) Countrywide will continue to review loan files for customers with high FICO
scores who received subprime Loans in order to assess whether the customers
were appropriately placed in subprime Loans. Countrywide will use a FICO
threshold for such review of 660 or higher.
6.4 APR Analysis.
(a) Countrywide will develop and perform on a periodic basis (but no less than
annually) regression analyses designed to determine whether there material
disparities in the APRs paid by black or Hispanic customers as compared to
similarly-situated non-Hispanic white customers.
(b) If the APR analyses contemplated in Section 6.4(a) reveal material disparities as
described above, Countrywide will take appropriate steps to determine whether
these disparities are due, in whole or in part, to racial and/or ethnic disparities in
(1) discretionary pricing practices; (2) Underwriting Exception practices; or (3)
product placement practices. If the material disparities are not explained by one
or more of these practices, Countrywide will take additional steps to identify the
source(s) of the material APR disparities and take appropriate remedial steps.
6.5 Anonymous Audits. Countrywide will develop and implement an Anonymous Audit
program for retail branches and Loan Officers selected by Countrywide whose loans
revealed material disparities in pricing or product assignment for black or Hispanic
customers as compared to similarly-situated non-Hispanic white customers.
Countrywide will select targets for its Anonymous Audit program based on the results of
the analyses required by Sections 6.1-6.3, as well as any information suggesting disparate
treatment. The program will be specifically designed to:
(a) compare the loan products offered, prices quoted, and information provided to
similarly-situated non-Hispanic white and black or Hispanic customers;
(b) determine whether customers are being informed in a consistent and nondiscriminatory
manner of the best mortgage loan product options, including with
respect to price, for which they qualify and that meet their expressed needs and
preferences;
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(c) determine whether Countrywide’s protocols and procedures for identifying and
presenting loan product options are being followed in a consistent and nondiscriminatory
manner; and
(d) determine whether customers are being informed of the costs of different loan
product features in a consistent and non-discriminatory manner.
6.6 Modifications to Regression and Other Analyses. If at any time during the duration of
this Agreement Countrywide determines that it is necessary to significantly modify any
of the statistical or other analyses, models, and methodologies required under Article VI,
it will provide a written description of the proposed modifications and the rationale for
such modifications to the OAG and the Independent Consultant. The proposed
modifications will be subject to the review and approval of the Independent Consultant
under the reasonableness standard set forth in Section 5.4.
VII.
DISCLOSURE REQUIREMENTS FOR NEW YORK LOANS
7.1 Countrywide will take appropriate steps to ensure that Loan Officers inform customers of
the best mortgage loan product options, including with respect to price, for which they
qualify and that meet their expressed needs and preferences.
7.2 Reduced Documentation Product Disclosures.
(a) Countrywide has developed a brief handout (“Reduced Documentation Product
Disclosure Statement”) for consumers providing important disclosures concerning
Reduced Documentation Products, which is attached as Exhibit A hereto. The
Reduced Documentation Product Disclosure Statement will be made available in
Spanish as well as English. Within three business days after receiving a loan
application for a Reduced Documentation Product, Countrywide will send the
customer the Reduced Documentation Product Disclosure Statement.
(b) Countrywide will take appropriate steps to ensure that Loan Officers, when
presenting a Reduced Documentation Product quote to a customer, will inform
the customer that full documentation products are generally less expensive and
offer to provide the customer with a quote for a full documentation product of the
same or similar type.
(c) Within 90 days of the Effective Date, Countrywide will in writing advise all
brokers who have brokered a Loan since January 1, 2006, that, prior to seeking
Countrywide’s approval of a Reduced Documentation Product, they should
disclose to customers that Reduced Documentation Products generally are more
expensive than full documentation mortgage loans, and should offer to quote the
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customer a price for a full documentation mortgage loan of the same or similar
type.
(d) If Countrywide identifies an instance where the requirements of this Section have
been violated, resulting in the origination of a Reduced Documentation Product
that was not in a customer’s best interests, Countrywide will compensate the
customer for any additional costs he or she incurred as a result of not receiving a
less expensive and more appropriate mortgage loan product.
7.3 Countrywide will develop and implement control systems to ensure compliance with the
requirements of this Article, including but not limited to mystery shopping of Loan
Officers, monitoring telephone calls between Loan Officers and customers, and surveys
of customers. If Countrywide identifies any Loan Officer who is not in compliance with
the requirements of this Article, Countrywide will take appropriate remedial steps,
including measures such as retraining, enhanced scrutiny of the Loan Officer’s Loans,
and termination of the Loan Officer’s employment.
VIII.
REVIEW OF LOAN FILES FROM 2004
8.1 Countrywide will conduct a file review to compare selected retail loan files from 2004 to
ensure that non-Hispanic white customers and black or Hispanic customers were treated
similarly, as described below.
8.2 Selection of Loan Files for Review. Countrywide will select matched pairs of Loan files
to review, subject to the following provisions:
(a) The review will include only retail Loans originated during calendar year 2004.
Each matched pair of Loans will be comprised of one Loan to a black or Hispanic
customer and one Loan to a similarly-situated non-Hispanic white customer.
(b) Countrywide will identify (1) all subprime Loans (including Expanded Approval
Loans) made to black and Hispanic customers; and (2) all Alt-A Loans made to
black and Hispanic customers (collectively, “Select Minority Loans”).
Countrywide will then select a prime Loan made to a similarly-situated non-
Hispanic white customer (“Comparator White Loan”) to compare to each Select
Minority Loan. Countrywide will select the Comparator White Loan by using
factors to be submitted and approved pursuant to Section 8.6.
8.3 Procedure for Loan File Review. Countrywide will review the entire loan file for both
Loans in each matched pair to determine whether the difference in product placement
between the paired Loans was justified by legitimate, non-discriminatory factors that are
documented in the loan file. In each instance where Countrywide cannot identify a
legitimate, non-discriminatory reason for the difference in product placement, the Select
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Minority Loan recipient will be entitled to monetary compensation pursuant Section 8.5,
except for Select Minority Loan recipients who received Alt-A Reduced Documentation
Products, who must submit the information described in Section 8.4 to receive
compensation.
8.4 Notice and Claim Procedure for Alt-A Reduced Documentation Products.
(a) With respect to each Alt-A Reduced Documentation Select Minority Loan where
Countrywide cannot identify a legitimate, non-discriminatory reason for the
difference in product placement, the OAG will mail to the Select Minority Loan
recipient a cover letter from the OAG (attached as Exhibit B) along with a
Notification Letter from Countrywide (attached as Exhibit C). The letters will be
provided in English as well as in Spanish. Countrywide will assemble the
mailings and pay the costs of any postage.
(b) For each Select Minority Loan recipient who responds to the Notification Letter,
Countrywide will review the relevant income and asset verification documents or
federal income tax returns in accordance with Countrywide’s 2004 underwriting
requirements to determine whether the Select Minority Loan recipient would have
qualified for a full documentation, prime loan under such underwriting
requirements. If the Select Minority Loan recipient would have so qualified,
Countrywide will provide the Select Minority Loan recipient with monetary
compensation pursuant to Section 8.5.
(c) Within 60 days after the date the Notification Letter is mailed, Countrywide will
advise the OAG of each Select Minority Loan recipient who has not responded to
the Notification Letter. Countrywide will call the last-known telephone number
of each Select Minority Loan recipient who has not yet responded to advise him
or her of the opportunity to obtain compensation pursuant to the terms of this
Article. If Countrywide receives no response from a Select Minority Loan
recipient within one year after the Notification Letter is mailed, Countrywide will
not be required to provide compensation to such recipient.
8.5 Monetary Compensation.
(a) For Alt-A Loans, compensation will consist of a refund of the added cost,
expressed in points, resulting from the receipt of an Alt-A Loan rather than a
prime loan plus simple interest on such points at 5%. For purposes of this
paragraph, points will be calculated based on the interest rate and point
conversion in effect for the applicable loan products at the time the Select
Minority Loan recipient obtained his or her Loan.
(b) For subprime Loans, compensation will consist of modifying the Loan to the
terms of the prime loan that the Select Minority Loan recipient could have
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obtained in 2004, and refunding the difference in payments over the term of the
Loan prior to modification, or, if the Loan has paid off, refunding the difference
in payments over the term of the Loan prior to payoff.
(c) Select Minority Loan recipients will be required to provide Countrywide with a
release of claims regarding origination matters as a condition to receiving the
compensation described herein.
8.6 Within 90 days of the Effective Date, Countrywide will submit its proposed file selection
methodology and file review procedure (collectively, “File Review Plan”) in writing to
the OAG. The File Review Plan will be designed to ensure that each Select Minority
Loan is reviewed, provided that there is an appropriate Comparator White Loan. The
File Review Plan will be subject to the OAG’s approval, which will not be unreasonably
withheld. Upon the OAG’s approval, Countrywide will conduct the file review in
accordance with the terms of the File Review Plan.
IX.
TRAINING
9.1 Countrywide will ensure that its fair lending training specifically addresses the following
areas:
(a) The legal prohibition against discriminating against customers in any aspect of
the credit transaction, including when offering price quotations for loan products,
deciding whether to seek an Underwriting Exception, selecting loan products to
offer customers, and charging overages and underages.
(b) Countrywide’s requirement that customers be (1) presented with the best
mortgage loan product options, including with respect to price, for which they
qualify and that meet their expressed needs and preferences; and (2) informed of
the advantages and disadvantages of any loan products and loan features
presented to them, including their relative terms, risks, and costs in dollar terms.
(c) The fact that Countrywide will conduct monitoring to ensure that customers are
treated fairly with respect to the pricing of loans and product offerings, and the
array of remedial steps that may be taken if racial or ethnic disparities are
identified.
(d) The disclosure requirements set forth in Article VII of this Agreement, and the
processes in place to ensure compliance with these requirements.
(e) Countrywide’s prohibition against recommending loan products (including but
not limited to Reduced Documentation Products and Nontraditional Mortgage
Products) for a customer based on a customer’s race and/or ethnicity or
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assumptions about racial or ethnic groups.
(f) For retail divisions, Countrywide’s disciplinary policies applicable to Loan
Officers who unlawfully discriminate against customers.
9.2 Within 90 days of the Effective Date, Countrywide will update its training materials to
the extent necessary to be consistent with this Agreement and to cover the areas set forth
in Section 9.1. All Loan Officers employed by Countrywide will receive fair lending
training using the updated training materials within 180 days of the Effective Date. All
Loan Officers hired subsequently will receive such fair lending training within 30 days of
their respective start dates. Such training will also be made available to brokers who
express interest in receiving it.
9.3 Within 120 days of the Effective Date, Countrywide will in writing advise all brokers
who have brokered Loans since January 1, 2006, that:
(a) the training set forth in Section 9.1 is available to brokers;
(b) Countrywide has implemented processes to closely monitor loans at the
individual broker level to ensure compliance with state and federal fair lending
laws, including processes to assess potential racial and/or ethnic disparities in
product placement and loan pricing; and
(c) Countrywide may take various remedial steps with respect to brokers based on the
results of its fair lending monitoring activities, including reducing Broker
Compensation caps upon a finding of substantial and unexplained racial and/or
ethnic disparities and terminating all or part of the broker relationship if such
disparities persist.
X.
COMPLAINTS
10.1 Countrywide will continue to maintain a standardized process that ensures that customer
complaints of discrimination involving Loans are promptly and thoroughly investigated
in an impartial manner, and that the complainant is promptly informed of the results of
the investigation.
10.2 If Countrywide determines that discrimination involving a Loan has occurred,
Countrywide will take prompt and appropriate disciplinary actions, up to and including
termination of the responsible individual(s). If Countrywide determines that the
complainant inappropriately received a higher-priced Loan as a result of discrimination,
Countrywide will compensate the customer for the additional costs he or she incurred or
appropriately reform the customer’s Loan.
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XI.
RECORD-KEEPING
11.1 Countrywide will maintain the following records for the duration of this Agreement:
(a) All documents required under federal and state residential mortgage lending and
consumer protection laws, including records maintained in an electronic form,
relating to Loans, including but not limited to loan application files and
documents relating to the underwriting of such Loans.
(b) Information that must be maintained pursuant to Section 4.3(d) by TCSP staff
reflecting counseling services provided to callers.
(c) Countrywide’s fair lending monitoring analyses conducted with respect to Loans,
including but not limited to all fair lending monitoring analyses required by
Article VI.
(d) Reports of the results of the compliance monitoring required under Section 7.3 of
Article VII.
(e) All records relating to the file review to be conducted pursuant to Article VIII.
(f) All curricula and other materials used to train Loan Officers on prohibitions
against discrimination in lending.
(g) All documents relating to customer complaints of discrimination involving a
Loan, including records reflecting the nature of each complaint, the investigation
conducted, the results of the investigation, and any actions taken as a result of the
investigation.
11.2 Within 21 days after receiving a written request from the OAG, Countrywide will
provide to the OAG any documents or data Countrywide is required to maintain under
the terms of this Agreement and any documents or data the OAG reasonably believes
relate to compliance with this Agreement. This Agreement does not in any way impair or
affect the right of the OAG to obtain documents from Countrywide pursuant to subpoena.
XII.
REPORTING
12.1 Within six months of the Effective Date, Countrywide will prepare and provide to the
OAG a report that sets forth the following information concerning the loan file review
required by Article VIII:
(a) A summary that states, for each Select Minority Loan: (1) whether a Comparator
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White Loan was identified; (2) Countrywide’s determination as to whether the
difference in product placement between the matched pair was justified by
legitimate, non-discriminatory factors that are documented in the loan file(s) or
obtained through the procedure described in Section 8.4; and (3) the basis or
bases for this determination.
(b) A summary of any remedial actions taken or planned to be taken as a result of the
loan file review. This summary will specify how each black or Hispanic
customer entitled to compensation pursuant to Section 8.5 has been or will be
compensated for the additional cost he or she incurred as a result of having
received either an Alt-A or subprime Loan rather than a prime loan.
12.2 In addition to the reporting described in Section 12.1, Countrywide will collect and report
information and data over three calendar-year Reporting Periods ending on December 31,
2007, December 31, 2008, and December 31, 2009, respectively. Within 30 days of the
close of each Reporting Period, Countrywide will provide a monitoring report to the
OAG that will include the following information for the Reporting Period:
(a) A list of the consumer education seminars held, the location of each seminar, the
language(s) in which each seminar was held, and the number of attendees at each
seminar.
(b) A list of the community events and programs where Countrywide staff attended
and offered consumer educational services and Educational Materials.
(c) The number of callers to whom TCSP staff provided mortgage counseling
services.
(d) A detailed breakdown of the funds expended in connection with the CEP,
including but not limited to funds expended for advertising.
(e) An assessment based on participant feedback of the effectiveness of each
component of the CEP and whether any component should be modified to
improve its effectiveness.
(f) A summary of the results of the fair lending monitoring analyses, regressions, file
reviews, and Anonymous Audits required by Article VI (including but not limited
to the scope and nature of any material racial and/or ethnic disparities identified),
any remedial steps taken in response to these results, and any follow-up analyses
to be conducted based on these results. The summary may use unique identifiers
in lieu of names to refer to specific Loan Officers or brokers, provided that such
unique identifiers remain the same for all three Reporting Periods.
(g) A summary of the efforts made under Section 7.3 to monitor compliance with the
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disclosure obligations set forth in Article VII, the results of such efforts, and any
remedial steps taken in response to such results.
(h) A summary of all customer complaints of discrimination involving Loans and
Countrywide’s investigation into such complaints and response thereto.
XIII.
PAYMENT OF INVESTIGATION COSTS
13.1 Countrywide will pay the sum of $200,000 to cover the costs of the OAG’s investigation.
13.2 Payment will be made within 30 days of the Effective Date in the form of a certified or
bank check made out to the New York State Department of Law and forwarded to the
Office of Attorney General, Civil Rights Bureau, 120 Broadway, New York, New York
10271, Attention: Natalie Williams, Bureau Chief, Civil Rights Bureau.
XIV.
JURISDICTION AND OTHER PROVISIONS
14.1 This Agreement will expire three years and three months after the Effective Date.
14.2 This Agreement shall apply only with respect to Countrywide’s activities
within New York State, including but not limited to any activities relating to Loans.
14.3 Notwithstanding any provision of this Agreement to the contrary, the OAG may, in its
sole discretion, grant written extensions of time for Countrywide to comply with any
provision of this Agreement.
14.4 The signatories to this Agreement warrant and represent that they are duly authorized to
execute this Agreement and that they have the authority to take all appropriate action
required or permitted to be taken pursuant to the Agreement to effectuate its terms.
14.5 The parties may seek to enforce this Agreement through enforcement proceedings,
including a civil action in federal or state court, as appropriate, seeking specific
performance of the provisions of this Agreement. Pursuant to New York Executive Law
§ 63(15), evidence of a violation of the Agreement will constitute prima facie proof of a
violation of the applicable statutes in any civil action or proceeding hereafter commenced
by the OAG. In the event of a dispute among the parties regarding any issue arising
hereunder, the parties will attempt in good faith to resolve the dispute before seeking
judicial intervention.
14.6 The failure by the OAG to enforce this entire Agreement or any provision thereof with
respect to any deadline or any other provision herein will not be construed as a waiver of
the OAG’s right to enforce other deadlines and provisions of this Agreement.
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14.7 Whenever this Agreement requires Countrywide to submit information or materials to the
OAG for its approval, the OAG will make reasonable efforts to promptly respond to
Countrywide’s request for approval. It shall be presumed that the OAG’s approval has
been given if the OAG does not object within 45 days of receiving such materials or
information.
14.8 If any provisions, terms, or clauses of this Agreement are declared illegal, unenforceable,
or ineffective in a legal forum, those provisions, terms, and clauses will be deemed
severable, such that all other provisions, terms, and clauses of this Agreement will remain
valid and binding on the parties.
14.9 This Agreement constitutes the entire agreement between Countrywide and the OAG on
the matters raised herein, and no other statement, promise or agreement, either written or
oral, made by either party or agents of either party that is not contained in this Agreement
will be enforceable.
14.10 Nothing in this Agreement is intended to confer any right, remedy, obligation, or liability
upon any person or entity other than the parties hereto.
14.11 Nothing in this Agreement waives or in any way impairs Countrywide’s right under New
York Public Officers Law Section 89(5) to request an exception from disclosure, or to
object to any proposed disclosure, of information provided to the OAG pursuant to this
Agreement.
14.12 This Agreement terminates the OAG’s investigation into Countrywide’s fair lending
practices with respect to loan pricing and resolves all claims related to that investigation
that the OAG may have had or may have against Countrywide as of the Effective Date.
However, nothing in this Agreement is intended to, nor will, limit the OAG’s
investigatory or compliance review powers otherwise provided by law or this Agreement.
14.13 This Agreement may be executed in multiple counterparts, each of which shall be
deemed a duplicate original.
14.14 This Agreement is final and binding on the parties, including principals, agents,
representatives, successors in interest, assigns, and legal representatives thereof. No
assignment by any party hereto shall operate to relieve such party of its obligations
herewith.
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14.15 All communications and notices regarding this Agreement shall be sent by first class mail
and facsimile, if 25 pages or less in length, to:
OAG Countrywide
Natalie R. Williams, Esq. Richard B. Wentz, Esq.
Bureau Chief Senior Managing Director, General Counsel,
Civil Rights Bureau and Chief Ethics Officer
Office of the NYS Attorney General Countrywide Home Loans, Inc.
120 Broadway, 3rd Floor 5220 Las Virgines Road, MS AC-11
New York, New York 10271 Calabassas, California 91302
Tel. (212) 416-8240 Tel. (818) 871-6060
Fax (212) 416-8074 Fax (818) 871-4669
With a copy to:
Melanie Brody, Esq.
Kirkpatrick & Lockhart Nicholson Graham
1601 K S

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