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ML
2113 Posts |
 Posted - 06/27/2008 : 06:16:03 AM
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Countrywide CEO Helped Many Get Loans
A Variety of People,
Not Just Senators,
Got Aid From Mozilo
By JAMES R. HAGERTY and GLENN R. SIMPSON
June 27, 2008; Page A3
More and more "Friends of Angelo" are surfacing.
As the mortgage market was wobbling a year ago, Angelo Mozilo, chief executive of Countrywide Financial Corp., intervened to help the daughter of a casino manager and her fiancé borrow to buy a home in Nevada. Countrywide gave them loans despite problems that ordinarily would have disqualified them, said a person familiar with the transaction.
Mr. Mozilo and his lieutenants also smoothed the way for mortgages for retired professional athletes, according to company insiders and property records, including former Indiana Pacers center Rik Smits and former San Francisco 49ers offensive lineman Harris Barton.
News of loans to prominent "Friends of Angelo" has appeared in The Wall Street Journal and other publications over the past three weeks. Borrowers have included two senators and two former CEOs of mortgage buyer Fannie Mae, one of whom, James A. Johnson, later stepped down as an adviser to the presidential campaign of Sen. Barack Obama. But it is becoming clear Mr. Mozilo and his aides shepherded loans for a wide variety of people. While there is nothing illegal about a mortgage firm treating some borrowers better than others, it isn't necessarily in shareholders' best interests.
Mr. Mozilo regularly lined up loans for people he met, according to several current and former Countrywide executives. Said one: "Angelo would call in and say, literally, 'My maid needs a loan.'"
Officials of Countrywide, whose shareholders this week approved a takeover by Bank of America Corp., didn't respond to requests for comment.
In the Nevada loans, the prospective borrowers were Lindy Morian and Chris Cooksey. Ms. Morian's father is David Buckles, a casino marketing manager who, an internal Countrywide email said, is a friend of a Southern California car dealer named Leo Bunnin.
Mr. Bunnin, in turn, is a friend of Mr. Mozilo and was treated as a VIP borrower at Countrywide, according to a former Countrywide loan officer. Public records show Mr. Bunnin has received a number of mortgage loans from Countrywide in recent years, including a $4.7 million refinancing in 2004.
Ms. Morian and Mr. Cooksey wanted to buy a $353,000 home in Henderson, Nev., south of Las Vegas. "Tell them I have approved the loan," Mr. Mozilo wrote in a June 8, 2007, email telling a colleague which office should handle the lending.
An employee working on it emailed his supervisor, "I WILL handle this one with 'kid gloves,' and this will be a HUGE win for us!" The supervisor then emailed to another colleague: "WOW! We have a referral from Angelo Mozilo." The supervisor said she had told the person working on the loan "to handle it like it's his mom's loan and his life depends on it."
However, another internal Countrywide email identified "two big problems" with the application: Ms. Morian was on a leave of absence from work to pursue her education, and the couple already had "spent their down-payment funds." Ms. Morian's father, Mr. Buckles, was "gifting" the 5% down payment.
The loans were to be a first and a second mortgage, totaling about 95% of the purchase price, of a sort that didn't require the borrowers to fully document their finances. The borrowers' total debt obligations equaled about 49% of their pretax income, exceeding the usual ceiling of 45%.
A person familiar with the loan discussions says that at the time, June 2007, lenders were scaling way back on subprime lending, and Countrywide wouldn't have allowed such exceptions without Mr. Mozilo's approval. The borrowers not only received the loans but got preferential interest rates and fees, this person adds. The first-lien mortgage was an interest-only loan, with no payment on principal due for several years.
Ms. Morian and Mr. Cooksey did nothing wrong in accepting these loans. They didn't respond to a letter sent to their address asking for comment.
Nor is there any suggestion of anything improper by Ms. Morian's father, Mr. Buckles, or his auto-dealer acquaintance, Mr. Bunnin. Mr. Buckles declined to comment through his employer, MGM Mirage. Mr. Bunnin couldn't be reached for comment.
The couple may now owe more on the home than it is worth. Home-value tracker Zillow.com estimates its value at $299,500, or 15% less than they paid. There is no indication the loan isn't current.
Mr. Barton, the former San Francisco 49er, obtained a $5.1 million Countrywide loan on a house in Palo Alto, Calif., in January 2007, property records show. A person familiar with it said it was a Friend-of-Angelo loan that Countrywide granted even though the borrower couldn't sufficiently document his income. Mr. Barton didn't respond to a request for comment. He is a founding partner of HRJ Capital, a private-equity firm whose partners include retired 49ers quarterback Joe Montana.
Mr. Smits received a $2.4 million Friend-of-Angelo loan for a home in Naples, Fla., in March 2006. Public documents don't provide enough data to know whether either he or Mr. Barton got preferential terms. Mr. Smits couldn't be reached for comment.
Mr. Mozilo helped arrange a multimillion-dollar loan to the buyer of a home being sold by former ice-hockey star Wayne Gretzky in 2002, according to a former Countrywide executive. The official said the buyer, an auto dealer who has since died, otherwise might have had trouble getting the loan.
A spokesman for Mr. Gretzky, coach of the Phoenix Coyotes hockey team, said the hall-of-famer knows Mr. Mozilo from a golf club where they have played, adding that Mr. Gretzky "was not involved in the loan process."
http://online.wsj.com/article/SB121451744958908571.html?mod=hpp_us_whats_news
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CoolMtgGuy
1948 Posts |
Posted - 06/27/2008 : 06:29:24 AM
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| How about posting every article about this from every news outlet? None of us watch the news or read the papers ... we come to BO to get this type of information. NOT! |
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jb060310
265 Posts |
Posted - 06/27/2008 : 06:30:09 AM
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| Interesting article, but why waste time writing it? It just seems that this journalist wants to smear Countrywide. There is no "news" in it. Who cares if Angelo helped a few people out? So does every other bank. So he gave a debt ratio exception, 45 to 49. There are many lenders out there who have the same preferential programs. I don't agree with everything CW did/does, but this is kind of a kick you when you are down article. None of these loans are bad, and like he said this isn't against the law. |
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benjamin
1634 Posts |
Posted - 06/27/2008 : 06:32:57 AM
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| The concern is that there are senators writing bills that are detrimental to brokers after they have received sweetheart deals from lenders. |
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CoolMtgGuy
1948 Posts |
Posted - 06/27/2008 : 06:49:28 AM
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Much ado about nothing. Unfortunately, this is par for the course in Washington.
quote:
Originally posted by benjamin
The concern is that there are senators writing bills that are detrimental brokers after they have received sweetheart deals from lenders.
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ML
2113 Posts |
Posted - 06/27/2008 : 06:57:09 AM
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quote:
Originally posted by CoolMtgGuy
How about posting every article about this from every news outlet? None of us watch the news or read the papers ... we come to BO to get this type of information. NOT!
I'm keenly aware that BO members don't read the papers, although some may have the papers read to them.
The WSJ has reported that your Sen. Chris Dodd (D-CT) Chairman of the Senate Banking Committee, has done something untoward by having Angelo Mozilo intercede on his behalf to obtain mortgage financing. Sen. Kent Conrad (D-ND) has also been implicated. The presumption of the allegation is that these Senators received such treatment due to their positions in Congress. Furthermore, the Journal infers that their preferential treatment benefitted them to the tune of tens of thousands of dollars.
When the facts begin to surface, it appears that the Senators got no better treatment than Mozilo's maid, "Angelo would call in and say, literally, 'My maid needs a loan.'"
With Sen. Dodd as the chief architect of the mortgage bailout compromise bill, I believe it's important and beneficial to all BO members to get ALL the facts, not just the sensational allegations of wrongdoing by our legislators. |
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djorge44
1206 Posts |
Posted - 06/27/2008 : 07:00:20 AM
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Let me get this right, you are posting this as a DEFENSE to Dodd?
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Reegor
440 Posts |
Posted - 06/27/2008 : 07:00:44 AM
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Until people organize and replace these crooks this will continue.
Where is George Washington when he is needed?
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ML
2113 Posts |
Posted - 06/27/2008 : 07:02:19 AM
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quote:
Originally posted by djorge44
Let me get this right, you are posting this as a DEFENSE to Dodd?
Correct! |
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CoolMtgGuy
1948 Posts |
Posted - 06/27/2008 : 07:03:04 AM
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Not picking on you but it is a non-story man ...
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jb060310
265 Posts |
Posted - 06/27/2008 : 07:13:42 AM
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quote:
Originally posted by benjamin
The concern is that there are senators writing bills that are detrimental brokers after they have received sweetheart deals from lenders.
This story has nothing to do with Senators. It is friends and quasi-celebrities. I could be on here...I bought my house when I was an AE, and I knew the rep from Wells Fargo, he helped me out moving the deal along, and the shop I did my deal through waved all origination and processing and did the loan at par. So I got preferential treatment. |
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Reegor
440 Posts |
Posted - 06/27/2008 : 07:15:04 AM
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The senators are crooks.
The bill they wrote was crafted by the same company buying the company they took favors from.
Cool - This crap should never be a non-story.
CRooks running the country has never been so bad. Now we see it everyday and do nothing about it. If they took favors. Admit it.
Just don't continue in the same industry calling others crooks.
These Senators want all mtg brokers gone. Period end of story. They are funded by banks and with bank favors.
This story should be so big these guys leave.
Instead we'll talk about cheating swimmers. And have steroid Congressional inquiries. |
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ML
2113 Posts |
Posted - 06/27/2008 : 07:22:26 AM
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quote:
Originally posted by CoolMtgGuy
Not picking on you but it is a non-story man ...
No offense taken, the non-story is that Sen. Dodd would call someone, who knows someone, who knows Angelo, who would give him preferential treatment, as in fast confidential service! Do you think Sen. Dodd walks into a CW branch and asks to see an LO. "OK Sen. Dodd, take a seat over there, and I'll have one of our mortgage monkeys take your loan app. in a minute"
I can see the posting on the BO now:
2nd Home, Full Doc, $1.5m, 100%
this guy works for the gov't, says he's: Chrmn Sen Bnking Cmtee, whatever that means, can anyone do this loan? |
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djorge44
1206 Posts |
Posted - 06/27/2008 : 07:23:38 AM
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ML I think you may be one of the people who only cares about corruption on the other side of the isle.
Corruption is corruption, the HEAD of the BANKING Committee should not be given VIP treatment.
If the HEAD of the ARGRICULTURE commitee was given BELOW MARKET STOCK OPTIONS from an ARGRICULTURE company and then the AGRICULTURE policy was written by that company you would be up in arms.
It doesn't matter that Athletes and such got special deals. It matters when the head of a government entity whose job it is to regulate and watchover a business gets special treatments from a company he is suppose to watchover.
That is the difference and it is easy to see. Don't turn a blind eye just cause the crook happens to be on your political side
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SoCalRay
1116 Posts |
Posted - 06/27/2008 : 07:26:43 AM
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This is really a atory that is way over blown.
Did any of you see the Rates he got.
Dodd'd loan closed in 2003
4.5% on a 15 year fixed
I got 4.25% on a 15 year myself then, so I must be more important.
Of course anyone with any smarts could of gotten that rate for a short time in 2003 |
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djorge44
1206 Posts |
Posted - 06/27/2008 : 07:29:09 AM
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| you got 4.25 on a JUMBO? |
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SoCalRay
1116 Posts |
Posted - 06/27/2008 : 07:30:51 AM
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yes, I did
only 0.25 costs at the time |
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djorge44
1206 Posts |
Posted - 06/27/2008 : 07:35:36 AM
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Did some more research, he got a Jumbo 5 year ARM and a Jumbo 10 year ARM.
I have read 4 articles with different loan amounts and stories |
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ML
2113 Posts |
Posted - 06/27/2008 : 07:40:18 AM
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quote:
Originally posted by djorge44
ML I think you may be one of the people who only cares about corruption on the other side of the isle.
Corruption is corruption, the HEAD of the BANKING Committee should not be given VIP treatment.
If the HEAD of the ARGRICULTURE commitee was given BELOW MARKET STOCK OPTIONS from an ARGRICULTURE company and then the AGRICULTURE policy was written by that company you would be up in arms.
It doesn't matter that Athletes and such got special deals. It matters when the head of a government entity whose job it is to regulate and watchover a business gets special treatments from a company he is suppose to watchover.
That is the difference and it is easy to see. Don't turn a blind eye just cause the crook happens to be on your political side
Sen. Dodd is not on my side of the aisle. My side of the aisle is down the hall, around the corner, and up the street. My guy, (Nader) when he does buy a car, goes into the dealership, asks for the sticker price, and writes a check. This eliminates even the perception of favoritism of any kind. This is exactly how judges and legislators should behave. Sadly, they are so accustomed to preferential treatment, that even when they aren't expressly asking for a favor, they are receiving one. Sen. Dodd is a bright guy, he should know better. He should have said, "Give me good service, and the prevailing rate." |
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SoCalRay
1116 Posts |
Posted - 06/27/2008 : 08:01:41 AM
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quote:
Originally posted by djorge44
Did some more research, he got a Jumbo 5 year ARM and a Jumbo 10 year ARM.
I have read 4 articles with different loan amounts and stories
And those rates were available when he did these loans.
I can not believe someone said I got my information from a Liberal Website.
No, I was in the loan industry at the time.
And I am not a liberal by the way.
But I am sick of the Faux News Fanatics labeling Truth as Liberal everytime. |
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djorge44
1206 Posts |
Posted - 06/27/2008 : 08:41:31 AM
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| I am sick of MSNBC, Olberman is a joke |
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SoCalRay
1116 Posts |
Posted - 06/27/2008 : 09:38:42 AM
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Unfortunatelu like our government, if you want the real news, you to look at other countries for the truth in media
Austrailia and England's news wensites have a lot more information then ours do. |
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SoCalRay
1116 Posts |
Posted - 06/27/2008 : 09:43:05 AM
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one last thought on this
All I did was say the rates he got were available and then I get told I don't know what I am talking about and I got my information from a Liberal Website.
Stop tuning To Faux News brand of attacking people when they are telling the truth. |
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benjamin
1634 Posts |
Posted - 06/27/2008 : 09:47:02 AM
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| He received a discount in fees and rates,he is pushing legislation to help lenders while blaming brokers. |
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bmoran
1075 Posts |
Posted - 06/27/2008 : 10:13:39 AM
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Ok let me ask you all a question:
If countrywide is offering a loan lets say 30 year fixed at 6.% with no points
and they are making a 1point premium when they sell the loan to Fannie or whoever and Angelo calls and says give the guy a discount and Countrywide only makes a 1/2 point or maybe nothing or maybe even looses a little bit.
WHO THE HELL CARES !!!!!!!
I can not stand Democrats and Mr Dodd is at the top of that list, but I could give a rats you know what that he got a discount on his loan that was probably still a higher rate had he shopped around.
I understand it doesnt look good Mr Dodd being the head of the banking committe but really do you think a half point off a home loan is gonna influence him? Even I who can't stand him doesn't beleive that. |
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CoolMtgGuy
1948 Posts |
Posted - 06/27/2008 : 10:26:49 AM
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Well said. I am a former CT resident and do not like Dodd or Lieberman (aka traitor) but this stuff is small potatoes.
quote:
Originally posted by bmoran
Ok let me ask you all a question:
If countrywide is offering a loan lets say 30 year fixed at 6.% with no points
and they are making a 1point premium when they sell the loan to Fannie or whoever and Angelo calls and says give the guy a discount and Countrywide only makes a 1/2 point or maybe nothing or maybe even looses a little bit.
WHO THE HELL CARES !!!!!!!
I can not stand Democrats and Mr Dodd is at the top of that list, but I could give a rats you know what that he got a discount on his loan that was probably still a higher rate had he shopped around.
I understand it doesnt look good Mr Dodd being the head of the banking committe but really do you think a half point off a home loan is gonna influence him? Even I who can't stand him doesn't beleive that.
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djorge44
1206 Posts |
Posted - 06/27/2008 : 11:29:54 AM
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I think it is so funny when people call Lieberman a traitor, the guy has basically stood on his principals but his party left him. People call him a traitor because he supports Israel and thinks terrorism is bad. The Democrats left him, not the other way around.
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benjamin
1634 Posts |
Posted - 06/27/2008 : 11:44:28 AM
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Hopefully the real details will come out. One of the senators got a single family rate for a multi unit property, minimal docs.
If everything was above board, I will be the first to apologize. |
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