Why are Democrats blocking inquiries into Friends of Angelo program?
posted at 12:15 pm on August 3, 2009 by Ed Morrissey
CBS News did an in-depth report on the Friends of Angelo program at Countrywide last week, but Doug Ross notes that they buried the lede. CBS waited until the final paragraph of a good, detailed look at Angelo Mozilo’s aggressive campaign to provide loans for political power players to report the bombshell of the report:
Democrats are blocking a Republican effort to subpoena Countrywide documents. For now, it’s not clear whether there was anything illegal about the loan arrangements or whether Countrywide was able to fend off regulations by currying favor with the right people.
Wait — didn’t the Democrats say that they wanted to get to the bottom of the financial crisis and the meltdown of the housing bubble that caused it? Didn’t Democrats like Barack Obama cast Countrywide as one of the chief villains of the drama? Yes, he did:
Of course, immediately afterward, Obama picked Jim Johnson to head his VP search committee, even though Johnson got millions in loans from Countrywide while serving as Fannie Mae CEO. Chris Dodd and Kent Conrad got outed as big beneficiaries of Mozilo’s program as well. CBS says that there were plenty of others joining them in getting perqs for power:
Some of the most flagrant connections were with the House Financial Services Committee, which had oversight authority over Countrywide.
A chief counsel for the committee, Clinton Jones, got VIP treatment, and internal Countrywide emails leave no doubt as to why: “Jones is … an advisor to ranking Republican members of Congress responsible for legislation of interest to the (financial services) industry and of importance to Countrywide.”
A committee aide asked Countrywide to help his sister and brother-in-law after they got turned down for refinancing. Countrywide obliged calling the staffer “an aide to a senior member of the House Financial Services (Committee)” – a big supporter of Countrywide’s – “and very important to us.”
Joyce Brayboy, the Chief of Staff for Rep. Melvin Watt was funneled into Countrywide’s VIP program. Countrywide’s lobbyist urged the loan officer to “carefully” handle the loan saying Brayboy “reports directly to Congressman Mel Watt who introduced predatory lending legislation to address unscrupulous lending practices, and they do view Countryside as a trusted advisor.” Watt serves on the House Financial Services Committee.
With all of those connections to the Democratic Party, it shouldn’t surprise anyone that Democrats don’t want the Friends of Angelo program’s details coming out in subpoenaed documents. However, confirmation of that fact should be bigger news than a single line at the end of this report. Which Democrats are blocking the subpoenas?
Blowback
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To ask the question is to answer it.
John on August 3, 2009 at 12:17 PM
Being the most Ethical Congress Ever doesn’t include investigating your own party members, imagine how that would tarnish the image.
Bishop on August 3, 2009 at 12:18 PM
the entire democratic party is an influence peddling machine.
rob verdi on August 3, 2009 at 12:21 PM
Blocking of supboenas seems illegal. How can Congress block legal orders? Someone should take this to Federal Court. Or higher. Congress is NOT above the law, although many act like it.
bradley11 on August 3, 2009 at 12:21 PM
LOL…just slightly
Jeff from WI on August 3, 2009 at 12:25 PM
The swamp hasn’t been drained, it’s been back filled with sewage.
SouthernGent on August 3, 2009 at 12:25 PM
A close source of mine has leaked to me that both Dodd and Conrad have both received millions of dollars in illegal funds.
He/she has also stated the they have given the president part of these funds to hide his birth place records.
BruceB on August 3, 2009 at 12:26 PM
Government officials prove they are untrustworthy by blocking release of documents and that we need access to and verification of documents to prove our case.
Where have I seen this before???
journeyintothewhirlwind on August 3, 2009 at 12:26 PM
Ed, two guesses? Whatever happened to the old saying “I’ll give you three guesses and the first two don’t count.”
Americannodash on August 3, 2009 at 12:27 PM
Orwell was just off by 25 years.
Star20 on August 3, 2009 at 12:34 PM
I see an nice Alinsky opportunity here to hold them to their own standards. Obama set the standard of transparency, openness, CHANGE!, hold them to it.Make them live up to it.
skree on August 3, 2009 at 12:35 PM
Who do we email to get the records seen?
Cindy Munford on August 3, 2009 at 12:36 PM
Uhh, let’s see here…. No documents, blocked documents, disregard for the law…. OK. Check. Now let’s check this other list…. rope, check. Tar, check, Feathers, check. Pole/Rail, check. Ok, I’m ready now.
HomeoftheBrave on August 3, 2009 at 12:36 PM
To be fair, Countrywide probably wasn’t the only lender doing stuff like this for VPs. I lobbied for another very larger lender (now defunct) and I would occasionally get calls from Hill staff people asking for special favors. If they weren’t illegal I would do them, of course.
BTW, Clinton Jones was a lobbyist for Fannie Mae after he left the Committee. He also served as a policy advisor to the McCain campaign, which is a big reason why McCain never made a big enough deal out of the Friends of Angelo thing or the Fannie/meltdown.
Fannie/Freddie and Countrywide (and Citi and Wells Fargo and Chase) had their hooks into politicians of both parties.
rockmom on August 3, 2009 at 12:39 PM
Everyone that can be tied to the program should be immediately sent packing. I would also like to see their lifetime federal pensions and health insurance pulled for taking advantage of their positions to line their own pockets. They need to bunk in prison with a big hairy guy named Bubba.
TXMomof3 on August 3, 2009 at 12:39 PM
I talked with a Senate aide and they told me that there’s simply no media interest and that gives the Dems the cover needed not investigate.
Here’s what isn’t being reported enough. Conrad refinanced an 8 unit building as a residential property. That’s the equivalent of a health insurance company giving a Senator healthy rates even though they’re a lifetime smoker, only in this case it’s much worse. Residential is for 4 units and less. 8 units is a commercial property and yet this fact is totally dismissed and not put into context. Here is more details from my site.
mike volpe on August 3, 2009 at 12:39 PM
I’m not sure who had the hooks in whom…
Vashta.Nerada on August 3, 2009 at 12:41 PM
FREQUENT-FLIERS—SAVE THOSE AIR MILES FOR HOME LOAN DISCOUNTS!
Courtesy my @ss Mr. Dodd.
Rovin on August 3, 2009 at 12:41 PM
Just more of the same obama administration subterfuge and lying. It’s becoming so commonplace that it’s almost an assumption when one reads anything about him. If obama and his cronies are involved it’s gotta be crooked on some level.
jeanie on August 3, 2009 at 12:42 PM
The finest Congress and Administration money can buy.
kingsjester on August 3, 2009 at 12:42 PM
I suppose while we’re screaming at the blue-dogs about Obamacare, we could add a subscript about Country-wide.
I like skree’s Alinskyite idea.
applebutter on August 3, 2009 at 12:43 PM
If obama and his cronies are involved it’s gotta be crooked on some level.
jeanie on August 3, 2009 at 12:42 PM
Obama has his own questionable (totally sleazy) real estate deal.
TXMomof3 on August 3, 2009 at 12:43 PM
CBS also misses the fact that any of these VIP loans were eventually owned by Fannie Mae, as Countrywide sold all of its loans to Fannie.
Chris Dodd dragged his feet for 2 years on legislation that had passed the House to crack down on subprime lending AND to more strictly regulate Fannie Mae. Countrywide fought both of these bills very hard. Coincidence? I report, you decide!
rockmom on August 3, 2009 at 12:46 PM
It would be considered a “multifamily” loan, which Countrywide made plenty of and Fannie Mae bought under certain circumstances. I would have to see the rates and terms to know if it was really a sweetheart deal. Certainly if it carried the same or lower rate than a 1-4 unit building would, it would be suspicious.
rockmom on August 3, 2009 at 12:50 PM
Crooks who are sheilded and protected by the media.
hawkdriver on August 3, 2009 at 12:55 PM
To those wags who question the Obama-Pelosi government’s goal of complete transparency, you’re way off base. This is truly the most transparent government Evah.
Transparently Corrupt.
Jaibones on August 3, 2009 at 12:57 PM
shielded…
hawkdriver on August 3, 2009 at 12:58 PM
This is one of them trick questions, ain’t it?
Jaibones on August 3, 2009 at 1:02 PM
‘Chicago, Chicago…it’s not my kind of town….’
oh wait, should that be ‘D.C.’ now?
Spiritk9 on August 3, 2009 at 1:04 PM
Everything he and his people touch turns out to be tainted with something questionable. Also, I noticed on the tele a couple days ago that Michelle O’s smile is losing some of it’s glitter. Could be all this is taking its toll. The Gates thing may just have been some kind of turning point?
jeanie on August 3, 2009 at 1:07 PM
Because they’re all corrupt bastards?
darwin on August 3, 2009 at 1:18 PM
Frankly, I think there is even more to the mortgage meltdown than the Friends of Angelo.
Countrywide in particular and now BofA refuse to fully process short sales.
There is no logical reason for this and no one at the mortgage company short sale department will answer questions on that subject. You’ve never heard a person change the subject so fast or they stick to talking points better than a politician.
“Transparency” has made this nation one hell of a scary place.
ORconservative on August 3, 2009 at 1:23 PM
Rockmom,
with all due respect, you know what I would refer to as “just enough to be dangerous”.
An 8 unit is a commercial property. A multi familyproperty is a two, three or four unit and that’s according to HUD. The important thing here is not that it is a multi unit but that it is a commercial property. If your property is a four units or less, it is a residential property. That gets a residential loan. Anything more than that is a commercial loan. That’s what this property was and it should have gotten a commercial loan. I don’t know that Fannie ever dealt in commercial but if they did the loans tied to them would have been commercial loans. In this case, the loan was a residential loan. The two loans are totally different. Fannie would NOT buy this loan on this property unless someone was totally ceding their fiduciary responsibility.
You are speaking in nonsense. He was given a residential loan for a commercial property. That is just fraud. There are no two ways about it. If that loan was subsequently sold, that’s even more fraud.
mike volpe on August 3, 2009 at 1:30 PM
See no evil,speak no evil, hear no evil.
portlandon on August 3, 2009 at 1:33 PM
Errr, Errr (yes, I am from the south)…let me think – that’s a tough one, Ed… could it be Pelosi, Reid, Obama, Holder? Nah, after all they are the most transparent Congress, evah! /sarc
lovedinthekeys on August 3, 2009 at 1:36 PM
What, her shark grin is more menacing than usual?
Look into her eyes, there is some serious hatred and contempt in those orbs.
Bishop on August 3, 2009 at 1:36 PM
…and don’t forget the most transparent – and ethical administration. “Yes, we are!”
lovedinthekeys on August 3, 2009 at 1:37 PM
Didn’t someone mention the other day that the Democrat Party is a criminal enterprise. While I think they were speaking in jest, perhaps not.
georgeofthedesert on August 3, 2009 at 1:49 PM
Yes. And OJ said he was looking for the real killer.
Grafted on August 3, 2009 at 2:07 PM
I run a non-profit homebuilding organization. We were encouraged by the American Dream Act (and the various financing methods offered by FNMA) to “get people into homes”. While we wanted to help people get their own home, our concern was that they would be able to afford to keep it.
Although many lenders softened their standards such as the 30% cost to income ratio, and would gave our applicants a mortgage, we believed that if their expenses exceeded 32% (including utilities) of their income, they would be too cost burdened. By taking this approach, we have had NO defaults. Frankly, we took the stand that some people just cannot afford homeownership, including taxes, insurance, maintenance, etc., in addition to utilities and daily living expenses.
As to your question regarding FNMA: The following is from a pamphlet given to us by a lender. (emphasis, mine)
“Fannie and Freddie are both private companies designed to promote home ownership for low and medium class families. Neither company makes loans directly to borrowers; rather, they rather buy mortgages from the commercial banks, insurance companies and credit unions that originate them, providing a continuous influx of capital to those institutions. This capital can then be used to originate new mortgages. Like the FHA, the main focus of Fannie Mae and Freddie Mac is the residential market, but their activities bleed over into the commercial real estate realm through their involvement in multifamily residential properties such as apartments and condos.”
lovedinthekeys on August 3, 2009 at 2:16 PM
Just WTF did you expect? Zero is a congenital liar.
Mr. Grump on August 3, 2009 at 2:31 PM
Rockmom, like I said you know “just enough to be dangerous”. I work with Fannie/Freddie everyday in mortgages. Running a non profit doesn’t make you an expert in Fannie/Freddie. Multi units, as defined by HUD, are two, three and four units. They aren’t eight units. Those are commercial properties. Even if Fannie/Freddie, bought a loan on such a property, they wouldn’t buy a residential loan. That’s what Conrad got. Like I said, it’s the equivalent of a health insurance company ignoring years of smoking when figuring out a Senator’s insurance premium, only this is even worse.
That shouldn’t be minimized but maximized. This is downright fraud. If it was then sold as such to Fannie/Freddie, it’s even greater fraud. Such a property would have a totally different loan structure. It would have a pre pay, a balloon, it would be several percentage points higher, and it would have a rate that adjusted. Conrad got something entirely different.
mike volpe on August 3, 2009 at 2:50 PM
Mike Volpe: You are correct, these are “commercial” loans (see my posting above under “lovedinthekeys”, where I emphasized the language in the pamphlet we received from the lender describing FNMA’s involvement in “commercial loans” for multifamily residential units. While the units may be residential in nature, the form of the loan is NOT residential, it is commercial. My non-profit built a 16 unit apartment complex and we were considered multifamily by the bank, but the FNMA rider we had to sign for the loan listed it as COMMERCIAL.
lovedinthekeys on August 3, 2009 at 3:00 PM
WHY??? BECAUSE THEY ARE BIRDS OF A FEATHER .THEY ARE ALL WELL ALMOST ALL CROOKS .
thmcbb on August 3, 2009 at 3:07 PM
right2bright on August 3, 2009 at 3:31 PM
In addition, a few years back Fannie changed their language, dropping the term “multi-family” and replacing it with “multi-unit”.
They also wanted to eliminate the term “Master Bedroom”, believe it or not, but that never happened.
Del Dolemonte on August 3, 2009 at 4:06 PM
Not trying to be a smartass, but it took me about a minute to find this:
Fannie Mae multifamily loan guidelines
Clearly says a multifamily loan is over 5 units.
One of the things Fannie’s opponents used to rag on all the time was how it bought a lot of multifamily loans to fulfill it affordable hosing goals, which were clearly intended to spur homeownership for low- and moderate-income families. It’s had a pretty sizable multifamily business for many years, and I’m sure a lot of it was done through Countrywide before CW blew up.
As for my industry bona fides, I’ve worked in the mortgage industry for 14 years, and I know the Countrywide lobbyists whose names are on those emails. I’m VERY familiar with their lobbying operation, as well as Fannie Mae’s. One of my best friends had the job at Fannie to twist the arms of their customers and all the industry associations to oppose any GSE reform legislation. I once represented Freddie Mac’s largest customer, and another close friend of mine heads Freddie’s multifamily business.
I know way more than enough to be dangerous. In fact, I am writing a book about this whole mess because I know more about it than almost anyone. I even know about Barney Frank’s boyfriend and how he got his job at Fannie Mae.
rockmom on August 3, 2009 at 4:20 PM
Right, but again, the important thing is not whether or not this is a multi family but whether or not it is a commercial or a residential property. The property is a commercial property and the loan was done as though it is a residential property.
Again, Conrad got a residential loan on a commercial property. It’s beside the point that Fannie/Freddie does these loans. They would never buy an eight unit if that unit was backed by a residential loan unless that was done fraudulently.
mike volpe on August 3, 2009 at 4:36 PM
Wow, talk about being out of the loop.
Hell froze over and I didn’t even get a wake up call.
Blacksmith8 on August 4, 2009 at 6:12 AM
My point being that the Communist Broadcasting Service doing a in-depth anything other than extreme colonoscopy video of the Won Akbar would be so completely out of character that I could only feebly compare it to the apocalypse.
Blacksmith8 on August 4, 2009 at 6:15 AM