Countrywide’s VIP Loan Program
According to a new report issued by the House Oversight and Government Reform Committee, Countrywide Home Loans used a VIP loan program to gain favors from members of Congress and other officials.
Loans with no upfront costs, reduced interest rates, and other favorable terms were provided with little or no underwriting scrutiny as part of a program designed to benefit Countrywide.
Reports of the VIP program first surfaced in 2008 when it was revealed that influential policy makers, including former Senate Banking Committee Chairman Christopher Dodd, received sweetheart loans with special terms from Countrywide.
Naturally, those who received such loans denied any wrongdoing.
According to a DSNews.com article, Countrywide made 17,979 such loans as part of the program.
Countrywide, prior to being purchased by Bank of America in 2008, specialized in subprime loans.
Source: CNNMoney.com article and DSNews.com article
July 8th, 2012 Posted in Inside Real Estate
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