Congressional investigators said Monday that four House members received VIP discounted loans from the former Countrywide Financial Corp., the lender whose subprime mortgages was largely responsible for the nation's foreclosure crisis.
Rep. Darrell Issa, R-Calif., chairman of the House Oversight and Government Reform Committee, declined to name the four but wrote the House Ethics Committee that it should investigate the lawmakers.
Issa, in a letter dated Friday and released Monday, said there could be additional lawmakers who received discounted loans.
The most favored customers of Countrywide were known as "Friends of Angelo," who were given discounts in a VIP section under control of the company's CEO Angelo Mozilo. However, Issa said his investigators discovered that other sections of Countrywide also processed VIP loans to public officials and others in position to help the company.
Countrywide was taken over by Bank of America, which has given Issa's committee 100,000 documents in response to subpoenas.
Issa's letter to ethics Chairman Jo Bonner of Alabama and ranking Democrat Linda Sanchez of California said: "Testimony and documents show that Countrywide used the VIP program to build relationships with government officials and others positioned to advance Countrywide's business interests.”
It was previously revealed that Sen. Kent Conrad, D-N.D. and Chris Dodd, D-Conn., while still a senator, had received VIP loans from Countrywide. Both said they did not know they were getting unique deals and Dodd maintained he received no preferential treatment.
Others named as recipients of the VIP program were James Johnson, former head of Fannie Mae who later stepped down as an adviser to Barack Obama's first presidential campaign, and Franklin Raines, who also headed Fannie Mae. Still other "friends" included retired athletes, a judge, a congressional aide and a newspaper executive.
The Senate's ethics committee looked at the Dodd and Conrad cases and cleared them of wrongdoing, but warned that they should have exercised better judgment.
PressTV - Probe: House members received VIP loans from lender
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