House Committee on Oversight and Government Reform Chairman Rep. Darrell Issa (R-Calif.) Wednesday issued a “wide-ranging subpoena” to Bank of America for all documents and records related to Countrywide’s VIP program, the so-called “Friends of Angelo” circle. Issa has been investigating Countrywide since December 2008. Bank of America purchased Countrywide in January 2008. “Countrywide orchestrated a deliberate and calculated effort to use relationships with people in high places in order to manipulate public policy and further their bottom line to the detriment of the American taxpayers even at the expense of its own lending standards,” Issa said in a statement. “This subpoena will allow us to obtain the information needed to answer the outstanding public interest questions regarding the full size and scope of the VIP program,” he added. “The American people have a right to know the totality of who participated in the Countrywide’s VIP program and what they did in return for access to it. Our role is to get all of the facts so that the American people can judge for themselves who should be held responsible and accountable.” Issa’s office said that Bank of America has until March 7 to produce several caches of documents, including emails, of the Friends of Angelo program, especially those concerning “covered borrower” status. Covered borrowers and their spouses allegedly received privileged lending status. These borrowers were federal or state employees and those who worked for Fannie Mae and Freddie Mac. Former Countrywide President Angelo Mozilo settled, without admitting or denying any wrong doing while in the post, with the Securities and Exchange Commission for $22.5 million. Write to Jacob Gaffney. Follow him on Twitter @JacobGaffney.
Most Popular Articles
Quicken Loans has become the largest mortgage lender in the country over the last few years due in large part to the growth of Rocket Mortgage, the company’s digital mortgage platform. As it turns out, Rocket Mortgage is becoming so big that it’s now consuming other parts of the Quicken Loans family of companies too, namely the company’s reverse mortgage lender.
U.S. home prices increased 5.1% in the fourth quarter from a year ago, matching the pace of the prior quarter, according to the Federal Housing Finance Agency.