An LA Grand Jury has begun an investigation into loans made by Countrywide Financial Corp., the biggest U.S. mortgage lender, to influential Democrats through its “Friends of Angelo” program, writes The Wall Street Journal.
The previously undisclosed home loans were made to two executives of Fannie Mae, the government-chartered firm at the center of the U.S. credit crisis. Influential Clinton-era Democrat Jamie Gorelick had a $960,000 mortgage refinancing in 2003 while she was Fannie Mae’s vice chairman.
Others who benefited under the VIP program and are reportedly being investigated are Democrat Party Senator Chris Dodd, former Fannie Mae Chief Executive Franklin Raines, and California state appeals court judge Richard Aldrich. Recently ousted Fannie Mae Chief Executive Daniel Mudd is also reportedly being investigated.
Countrwide’s then-CEO Angelo Mozilo was reportedly personally involved in approving VIP loans. Mozilo reportedly gave the order to “Go ahead and approve the loan, and close it as soon as possible” in the case of Judge Aldrich, despite being told that the credit line being sought was “above what guidelines allow.”
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