Two GOP Congressmen Received Discounted ‘VIP Loans’ from Countrywide
by Wynton HallOn Friday, Reps. Howard McKeon (R-CA) and Elton Gallegly (R-CA) were named as recipients of discounted mortgage loans from the now-defunct Countrywide Financial Corp., previously the nation’s largest mortgage lender before being bought out by Bank of America.
Reps. McKeon and Gallegly both claim they did not know their loans were processed through the so-called “Friends of Angelo’s” VIP division, a reference to Angelo Mozilo, the former head of Countrywide whom TIME magazine named as one of its “25 People to Blame for the Financial Crisis” report.
The two California Republicans join Democratic Congressman Rep. Edolphus Towns (D-NY) as the three of four House members identified by the House Oversight and Government Reform Committee as having had loans processed through Countrywide’s VIP loan program. Rep. Towns also says he was unaware that his loan had been routed through Countrywide’s VIP loan division. The fourth House member the Committee has identified as having received a discounted loan has yet to be publicly identified.
Rep. McKeon’s spokesperson, Alissa McCurley, says Rep. McKeon was “shocked and angry” when he learned his $315,000 mortgage loan had been processed through Countrywide’s VIP loan division. Ms. McCurley stated that Rep. McKeon, who serves as the chairman of the House Armed Services Committee, “had no knowledge of the Friends of Angelo designation” and “has never met or spoken to Angelo Mozilo. Mr. McKeon is going back trying to figure out what Countrywide did to this loan 13 years ago.”
Similarly, Rep. Elton Gallegly, who is not running for reelection, has stated through his spokesperson, Thomas Pfeifer, that he never even knew a VIP division existed at Countrywide, nor that it approved discounted loans for special individuals. Rep. Gallegly’s 2004 loan was for $77,000 at 5.75 percent interest and was paid off the following year in 2005. Mr. Pfeifer told the Wall Street Journal that had Rep. Gallegly known that his loan would receive preferential treatment and be routed through the “Friends of Angelo” division Rep. Gallegly would have “run away from” it.
Both Reps. McKeon and Gallegly say they have never met Angelo Mozilo.
In 2010, Mr. Mozilo agreed to pay $67.5 million in Securities and Exchange Commission penalties. Bank of America, which bought Countrywide, set aside $8.7 billion to settl predatory lending charges against Countrywide filed by attorney generals in 11 states.
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39 Comments
Corruption is corruption no matter where you find it.
It needs to end, and heavy punishments to those who cross that line.
The biggest question I have is; can we get non-unionized workers to build the stocks on the capitol steps?
Let's see, ignorance is no defense, period. But your honor I didn't know I was breaking the law…tough turkey, guilty as charged.
Two funniest words ever put together Congressional Ethics, hahahahahahaha…
I find it hard to believe that these people did not know this was happening, if they truly did not know this was happening why are they in a position of power?
Why is this coming to light now? Countrywide was absorbed years ago and the loans in question were from many years before that. Given that congress is corrupt, where is the news value today? Is it because they are Republibums?
Throw em all out. Inact federal term limits and lets start this whole thing over with citizen legislators. As our founders intended. Let us destroy this political class.
Nobama 2012
Is this just like the House banking scandal where members didn't know that they were having bad checks paid off?
Also don't you have to sign agreements and be told your interest rate. Unless these Congressmen were so out of touch with interest rates they didn't know they were getting a favorable rate let alone favorable terms.
Walter Hanson
Minneapolis, MN
My mortgage was sold out from under me over ten years ago to some strange-named entitity, and I know all kinds of people who are refi for absurdly low interest rates. These rates are so low that they are giveaways…
As scandals go, I can't get too excited over this one. Sorry. I'm saving my energies for Pigfords and Fast and Furious and Warren Buffett's breathtakingly hypocritical cronyism.
If these two were truly unaware that they were getting special consideration then they should not be castigated for it. Somehow though I doubt they were ignorant of what was happening and if they are taking favors like this then they as anyone found guilty of corruption of this sort should be prosecuted to the full extent of the law and resign their offices. Corruption of this sort, no matter who does it is why we are in the mess we're in – and turning a blind eye to it only exacerbates the problem.
Power corrupts and absolute power corrupts absolutely. Just another good reason for term limits.
Easy.
Voters in their districts elected them. And depending on how many ads they each buy, will no doubt send them back again.
When voters stop being stupid, crooks will stop getting elected to congress.
Given that congress is corrupt…………
if you're conceding that then why bother to read any of the articles, post any reply, or even vote. Just live your life with the knowledge congress is always corrupt and stop worrying about politics.
Or put another way……..
If they're too stupid to know they were breaking the law, then why are they in congress to begin with?
My point is in the next paragraph. Drain the swamp and return to thevalues espoused by the creators of the country. Citizen legislatorswho go to Washington for a short time to serve their country. Not tobe served by it. Federal term limits are the answer. Too many havestayed too long and have gotten too rich off the present system.
" Ms. McCurley stated that Rep. McKeon, who serves as the chairman of the House Armed Services Committee, “had no knowledge of the Friends of Angelo designation” and “has never met or spoken to Angelo Mozilo. Mr. McKeon is going back trying to figure out what Countrywide did to this loan 13 years ago.”
Therein lies the problem if we were to believe a supposed educated person that sits down to sign his/her mortgage papers they were not aware of the terms .Then outrage comes 13 years later after discovering it was a sweetheart deal.No wonder this country is swirling down the bowl.
Fire'em!
Sure sound like a witch hunt to me, if they are digging up dirt from 13 years ago. They never did anything to Dodd or Frank when they caught them doing this many years ago. Why are they only finding this now? Didn't they do a full investigation on this when they caught Dodd and Frank?
How many other businesses give them a frends and family discount? Are we going to look at every business these people use? I am very certain that loans are not the only perk these guys receive. You can't spend millions on campaigns and still leave congress with twice as much money as you came with, unless there are lots of people giving you deals. What about all the sweetheart IPOs they get?
It's more obvious the only reason the politicians run for office is The Bucks. The People and The Country are of limited concern to the Washington Culture, and the MSM gives that corrupt culture plenty of cover and free pass!
"Throw em all out. Inact federal term limits and lets start this whole thing over with citizen legislators."
Nice thought but in todays political world the "citizen legislators" will have to have a pocket load of money just to get on a school board. Somehow we need to take the money out of politics before a citizen politician can get in the mix.
Most people know if you buy a new stereo for half price out of the trunk of someone’s car, it is probably stolen. If you get an interest rate that is too low, you are either getting scammed or bribed.
Hmmm….That F.O.A. division seems not to have been very good for its friends. Countrywide gave us MUCH MUCH better terms and we are complete nobodies. What is the big huge hairy deal? I think Countrywide just got caught in its own stupidity–wanting to be the biggest and not being very good financial analysts led to stupid loans. We sure love ours, though. It got us through a very tough time, and we are still in our home.
The reason it is so expensive to get to congress is that once there the rewards are huge. It is an investment for the candidates. Term limits and citizen legislators would hopefully remove this huge financial incentive and thus remove the allure of office.
For the power and the MONEY. That is why.
If you block my legislation I will tell Time you took a bribe in the form of a reduced rate mortgage.
Find out who they all are and either litigate, or campaign against them……but I am sure they have created laws that let them get away with it…..
Sounds good.
Sadly so long as the potential for corruption, cronyism, and bribes remains inherent in congress, mostly people who are already thus inclined will be the ones running for office. Our system is so skrudup only the wealthy can afford to run for high office.
Even though the TP has made it clear that we will support good folks with the only currency that spends….our votes….big spenders backed by political parties bury them with crapads on TV and again, sadly, voters still believe what they see on TV despite years of proof that TV ads are nothing but sales pitches.
Until voters wake up and see nobody wins office without being voted in, not buying in, will we the people have any profound influence on our corrupt political system. Talk, protest, mass gatherings only get you so far.
Votes are the only way anyone gets elected.
Votes can't be bought unless fools are willing to sell them.
Look at West. How impressed were you when he was campaigning? How energized and encouraged were you when he picked up a microphone and launched a barn burner of a speech damning all the folks in gov't and talking about how divisive and racially prejudiced this presidency has been?
What's the first thing West did when he got to DC? Joined the racist, utterly corrupt Congressional Black Caucus. And then voted to support Pigford. Folks bought his BS, trusted him to "do the right thing" for them and this country.
Within a week he joined one of the worst special interest, race baiting groups on the hill. If a man like West can be fooled so quickly and totally coopted by out and out frauds, who is strong enough to resist the corruption rampant in gov't?
Hold your horses folks…………….Country Wide also offered VIP treatment to anyone who had previously used them if they were purchasing a new home. We resided in the State of Washington when we were contacted by Country Wide soliciting our business. Seems our realtor had friends who worked there. When they pulled a pre-qualification credit report they noted that we had a previous mortgage with CountryWide. CountryWide offered us a 1/4 percent discount on the rate and waived closing costs if we would do business with them. Trust me we were not what I would call VIPs. Just credit worthy shoppers being solicited.
Not really sure what Friends of Angelo program got anybody. A 4% 30 year fixed? what?
It is the same cronyism we have been seeing. Our congressmen/women have been enriching themselves in many cases at taxpayer expense but surely by leveraging privilege as a congress member.
"Throw them ALL out"
Remember in November, REMEMBER IN NOVEMBER
I am a business man and a procurement negotiator as such we have ethics. No gifts larger then $250 in a year, no paid for trips, no kickbacks. If you do anything like that you get fired. But congress seems to have made a business out of it and written their own laws so they can't be prosecuted. If I take gifts those gifts are in the price of the goods or services being procured and the company is ill served when that happens.
What about that does a congress member not understand? More likely they don't care.
And what did Country Wide receive in return? How many congressman shorted CW stock? Why hasn't he been brought before a congressional hearing?
Why would you want to build stocks where a guillotine should be?
When will people finally realize that, on the corruption front, there is no difference between the (R) and (D) and that the (R)s protect the (D)s and the (D)s protect the (R)s in order to continue their "culture of corruption"?
From insider trading to gun running to Mexican drug cartels, both establishment wings of the political faction called the Democrat-Republican party enable themselves to continually assault the Citizens of this country and every Liberty they are supposed to be protecting.
Admit it folks, the progressives have taken over and they rule over us with the heavy hand of tyrannical government.
Vote them out.
Every. Last. One. Of. Them.
Don't be silly… we aren't the French. We want them to realize that they got busted in their corruption and be heckled by the people for a long time.
Term Limits –
Strict laws regarding ANY corny capital cormism
These people are are nt better than people that elected them- they only took the power.
When will moderators of the debates ask Newt, Paul and Santorum why they deserve our trust when they have known about the crony capitalism in Congress for at least 30 years. Every one of these insiders is responsible for our present financial situation by acquiescing to more and more taxpayer spending. None get off the hook. I want to know what ALL candidates will do to stop crony capitalism like this VIP benefit to Congress. We want some serious questions asked!
R's & D's, put them all in a hat and whoever you pick there one in the same. A crook is a crook and there are lots of them in DC, bithplace of corruption in politics.
The use of the term "public service" should be forbidden by anyone in Government. It's as big a joke as the OCCU crowd calling themselves the 99%.
I wonder which State is more corrupt Illinois or California?
Ron Paul voted against literally EVERY SPENDING BILL that ca,e before him in all of his time….
santorum and newt not so much.
Every single one of these cockroaches in all parties…need to be thrown out in disgrace for deceiving not only their own constituents…but all Americans in the process!
I only wish it were days of old…when we could take them and harness them in stocks at the mall…for all to see…and all to address…by 'honest' upright citizens who despise them for what they have done to our nation and the future of our children…even theirs!
Another eradication is coming…America…in November 2012…remember who they are…use these lies and deceptions…as nails…as we did in 2010 to seal all the rest of the political coffins that should have been sealed in 2010 and were not…but will be in 2012…GUARANTEED!
GOD BLESS AMERICA THE LAND OF THE FREE AND THE HOME OF THE BRAVE AND MILLIONS AND MILLIONS OF JUDEO/CHRISTIANS PRAYING TO KEEP HER THAT WAY!
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