New Twist in Countrywide Loan Probe

CBS News ^ | Aug 7, 2009 | Sharyl Attkisson

[AtlasStalled]

Add Congressman Edolphus Towns to the growing list of influential Democratic and Republican VIP's who received loans from Countrywide Financial. That's significant because Towns, a Democrat, heads the committee investigating the mortgage giant's practices. And he personally is blocking the effort to subpoena Countrywide documents. Republican Darrell Issa is behind the subpoena effort. "It's really about what Countrywide sought to do, how vast it was, what they got for their millions of dollars in discounts and how do we make sure it doesn't happen again," Issa said. A Countrywide whistleblower says the company aggressively courted those in position to influence regulations as it made billions by giving out risky loans, then selling them to government-backed Fannie Mae. Billions of dollars worth of those loans defaulted at taxpayer expense.

[sono]

Watch for Judicial Watch to get in the act and subpoena documents. This story isn’t over heading into 2010.

[Gay State Conservative]

As sure as the sun rises in the east...every RAT exposed as having received this bribe from Countrywide will be found “not guilty” by the Senate/House “Ethics” Committee and every Republican will be expelled.

[DAC21]

I haven't heard any Repub names tied to this scandal previously...who are they...or just CBS trying to muddy the water?

[Eric in the Ozarks]

Towns called for hearings on the Cambridge PD arrest. Another pompous blowhard gets his t*t caught in the wringer...

[org.whodat]

LOL, since the most of what country wide did was during republican control, you can bet there is a lot you don't know.

From Politico:

A detailed report released today by the Center for Responsive Politics shows that Countrywide employeees have contributed $732,000 to congressional candidates since 1989, with the money fairly evenly divided between Republicans and Democrats.

Countrywide employees have given to every major presidential candidate's Senate campaigns, including Barack Obama, who collected nearly $19,000 in donations, and John McCain, who has received $10,000 over the years. Sen. Christopher Dodd (D-Conn.), who admitted to being part of the VIP program for his mortgages Connecticut and Washington, is among the top recipients of Countrywide related donations.

Reps. Ed Royce (R-Calif.) and Paul Kanjorski (D-Pa.), both senior members of the House Financial Services Committee, which has oversight of the mortgage industry, were the top recipients of Countrywide campaign donations.

http://www.politico.com/blogs/thecrypt/0608/Countrywide_spread_its_donations_far_and_wide.html

[BP2]

The worst is still ahead. In terms of dollars, we've shed less that 20 percent of the TOTAL of the foreclosures to hit between Oct 2008 and Sept 2012. Most of the foreclosures ahead are NOT high-risk, rather medium risk folks talked into Option ARMS, Second mortgages, etc. who lack the equity and cash for the down-payment to Refi.

This does not include Commercial foreclosures, most of which will not be able to re-finance. Also, this number does NOT factor for increased unemployment, bailouts, Obamacare (if passed) and increased interest rates needed to attract overseas investors to buy bonds.

Things are not looking good until 2013, really ... just in time for Obama to say his policies have worked.

[cranked]

“Things are not looking good until 2013, really ... just in time for Obama to say his policies have worked.”

Political damage invariably already done; he will go down as a one term POTUS.

[BigBobber]

The article say Republicans received LOANS from CountryWide, not campaign contributions. Do you know if any received loans?

[BP2]

Personally, I hope he will have less than one term.

His political capital from the last election is spent, and he’s making enemies very fast (like the CIA, the UK, etc).

They have the dirt on him. The biggest question is how & when are they going to leak it ...

[RWGinger]

Those are 2 different things; /campaign contributions and “ special deals”.
So far as the first poster pointed out there have been no Republicans named as taking special deals YET CBS mentions them too.

If there was an elected Pub who had taken the same kind of deals the Dems got, name them and they will get voted out.

But to just write a generic term without proof is typical of CBS

[Eagles6]

Let’s see now, dem congressmen that are in a position to affect legislation pertinent to countrywide are essentially given tens of thousands of dollars untaxed cash and they declare themselves innocent of wrongdoing.

[org.whodat]

There has been many mentions of special deals, many of them have gone to the staffers and girl friends , boy friends of the congress.

I would like to see all the records of country wide opened up and a whole bunch of their lending officers and appraisers put in jail. They were crooks. There should be a call for a special prosecutor, not a subpoena

[RWGinger]

I agree
get it all out in the open.
I have never seen any stories on GOP taking special deal. You mention staffers and girlfriends but the CBS article says Republican VIPs.
That seems disingenous unless they report on someone specific.

I am not saying it didnt happen, I have not seen it. If Pubs did it I want them gone.
can you direct me to some information on GOP staffers etc getting special deals?
thanks

[org.whodat]

But CBS News has learned that Countrywide's reach went far beyond two senators.

VIP mortgages were given to President Clinton's former Housing Secretary Henry Cisneros, and President Bush's Housing Secretary Alphonso Jackson.

Jackson's daughter Annette Watkins even got VIP loan status when an internal Countrywide email noted her father "is expected to be confirmed (by the Senate) as Secretary of HUD (Housing and Urban Development)."

Also on the list: Franklin Raines, then-CEO of Fannie Mae, which bought billions in toxic Countrywide loans that defaulted at taxpayer expense; and former Fannie Mae CEO James Johnson, one-time advisor to President Obama, and Postmaster General John Potter.

Minyon Moore, former Chief Operating Officer of the Democratic National Committee, and President Clinton's Director of White House Political Affairs also came to Countrywide for a loan and got VIP treatment. Countrywide emails explain that Moore "is a former White House staffer and the lead lobbyist for Dewey Square whom we have on retainer."

Some of the most flagrant connections were with the House Financial Services Committee, which had oversight authority over Countrywide.

A chief counsel for the committee, Clinton Jones, got VIP treatment, and internal Countrywide emails leave no doubt as to why: "Jones is ... an advisor to ranking Republican members of Congress responsible for legislation of interest to the (financial services) industry and of importance to Countrywide."

A committee aide asked Countrywide to help his sister and brother-in-law after they got turned down for refinancing. Countrywide obliged calling the staffer "an aide to a senior member of the House Financial Services (Committee)" - a big supporter of Countrywide's - "and very important to us."

Joyce Brayboy, the Chief of Staff for Rep. Melvin Watt was funneled into Countrywide's VIP program. Countrywide's lobbyist urged the loan officer to "carefully" handle the loan saying Brayboy "reports directly to Congressman Mel Watt who introduced predatory lending legislation to address unscrupulous lending practices, and they do view Countryside as a trusted advisor." Watt serves on the House Financial Services Committee.

Terms offered some of the VIP borrowers were outside Countrywide's normal policy, so the policy was manually overridden when the loans were processed. For example in the case of James Johnson, former CEO of Fannie Mae, Countrywide policy called for "1.375 additional points to be added to the 4.375% fixed base rate approved by Anthony Mozilo." But those extra points were manually overridden and reduced to "0" according to a House Oversight Committee report. Policy was also overridden manually on terms for Senators Conrad and Dodd, UN Ambassador Richard Holbrooke (Special Envoy for the Obama Administration) and others.

And when Countrywide found out Senator John Edwards and his wife were purchasing a $3.8 million dollar home in Georgetown, the lender wanted to provide the mortgage… even offering to "do whatever it takes" (see below) to close the loan in just eight short days.

"He is a future Presidential candidate and I think we out (sic) to stretch for him," says an internal Countrywide email. However, the Edwards didn't accept the offer and instead chose to pay cash for their property.

Congressman Darryl Issa, R-Calif., believes many more from both parties took questionable loans.

"This is a pretty vast attempt to influence government that did not benefit the American people in this meltdown of the economy around the world," Issa said.

You should really get out more often!!!!http://cbs3.com/consumer/countrywide.sweetheart.loans.2.1110266.html

[RWGinger]

maybe I should read cbs more often. thanks for the info. when was that out out? I would have thought there would be more made of finding 2-3 Pub VIPs even if none of them are in elected positions and able to help Countrywide.A crook is a crook.

if the Pubs who took special deals were still in office or postions of power they would be fired if past history is any indication.
Hopefully the Dems will step up and get rid of all the people named in that article who can be forced to resign.

[org.whodat]

CBS was just one of many stories along same line, mid summer last year. Congress has no intention of opening this can of worms. It's all hype and bluster!!

http://www.portfolio.com/news-markets/top-5/2008/06/12/Countrywide-Loan-Scandal

[org.whodat]

http://www.portfolio.com/news-markets/top-5/2008/06/12/Countrywide-Loan-Scandal

[RWGinger]

“Congress has no intention of opening this can of worms.”
How conveniently selective of them.

Last summer? I thought the CBS story is the OP was current.

[csvset]

both parties took questionable loans

Nothing to see here citizen, move along, move along.