NBC news reports that the Justice Department has begun an investigation into whether Countrywide Financial Corp used the ‘Friends of Angelo (Mozilo)’ program to buy influence with Senators Chris Dodd (D-CT), Kent Conrad (D-ND), and others. According to a senior Countrywide official who handled its VIP program, there was no way Dodd and Conrad could not have known they were getting a special deal:
…Feinberg says part of his job was to hammer home to the V.I.P. clients that they were getting special deals. “You spoke in a manner that was different than you spoke with a regular customer,” said Feinberg. “‘Your loan has been specially priced by Angelo.’ ‘You’re getting special discounts because you’re in the V.I.P. loan department.” So what would a “Friend of Angelo” get that an average customer would not? According to Feinberg, the possible benefits ran the gamut. “They got a discount on the interest rate,” said Feinberg. “They got discounts on their fees. They got a free floatdown option before closing…” “There were many, many taglines we used to let them know their level of importance to make sure that they understand where they’re located,” said Feinberg. “And nine times out of ten, once you mention ‘V.I.P’ the person’s gonna ask you ‘what am i getting for being in this V.I.P department?’ Or ‘what am I getting because I know Angelo?’ Or ‘I talked to Angelo and he said I’m getting this…'” Feinberg says he’s not aware of any discounts linked to favors, but he did see e-mails noting the potential value of the relationships to Countrywide’s political and business interests. The e-mails noted one particular client was “of importance to Countrywide.” Another encouraged a discount, noting “they are incredibly important to us.” Yet another asked that the loan officer, “make an exception” in Countrywide’s lending rules, “due to the fact that the borrower is a Senator.”
If Dodd and Conrad somehow missed the special treatment they were receiving, Feinberg’s testimony suggests that it was only because they chose not to listen. Nevertheless, Dodd is still refusing to release the paperwork related to his loans–information he promised to share weeks ago.
