<?xml version="1.0" encoding="UTF-8"?>
<rss version="2.0"
	xmlns:content="http://purl.org/rss/1.0/modules/content/"
	xmlns:wfw="http://wellformedweb.org/CommentAPI/"
	xmlns:dc="http://purl.org/dc/elements/1.1/"
	xmlns:atom="http://www.w3.org/2005/Atom"
	xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
	xmlns:slash="http://purl.org/rss/1.0/modules/slash/"
	>

<channel>
	<title>Merchant Funding &#187; Fannie Mae</title>
	<atom:link href="http://www.quickmerchantfunding.com/tag/fannie-mae/feed/" rel="self" type="application/rss+xml" />
	<link>http://www.quickmerchantfunding.com</link>
	<description></description>
	<lastBuildDate>Mon, 06 Feb 2012 17:54:04 +0000</lastBuildDate>
	<language>en</language>
	<sy:updatePeriod>hourly</sy:updatePeriod>
	<sy:updateFrequency>1</sy:updateFrequency>
	<generator>http://wordpress.org/?v=3.3.1</generator>
		<item>
		<title>VIP Loans By Countrywide</title>
		<link>http://www.quickmerchantfunding.com/vip-loans-by-countrywide/</link>
		<comments>http://www.quickmerchantfunding.com/vip-loans-by-countrywide/#comments</comments>
		<pubDate>Tue, 20 Jul 2010 22:49:30 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Business capital]]></category>
		<category><![CDATA[Business loans]]></category>
		<category><![CDATA[Obama Mortgage]]></category>
		<category><![CDATA[Obama plan]]></category>
		<category><![CDATA[Discounted mortgages]]></category>
		<category><![CDATA[Fannie Mae]]></category>
		<category><![CDATA[Freddie Mac]]></category>
		<category><![CDATA[preferential loans]]></category>
		<category><![CDATA[subprime mortgages]]></category>

		<guid isPermaLink="false">http://www.quickmerchantfunding.com/?p=111</guid>
		<description><![CDATA[The former Countrywide Financial Corp. gave preferential loans to more than three dozen employees of Fannie Mae while the two giant housing enterprises were locked in an expanding, multi-billion dollar business relationship in subprime mortgages, documents show. Discounted mortgages written by Countrywide, once the nation&#8217;s largest subprime lender, were granted to a far wider group [...]]]></description>
			<content:encoded><![CDATA[<p>The former Countrywide Financial Corp. gave <strong>preferential loans</strong> to more  than three dozen employees of <strong>Fannie Mae</strong> while the two giant housing enterprises were locked in an  expanding, multi-billion dollar business relationship in subprime  mortgages, documents show.</p>
<p><strong>Discounted mortgages</strong> written by Countrywide, once the nation&#8217;s largest  subprime lender, were granted to a far wider group of Fannie employees  than the four top executives executives whose preferential loans were  previously disclosed, according to Countrywide documents provided to Congress under a subpoena.</p>
<p><a href="http://www.quickmerchantfunding.com/wp-content/uploads/2010/07/BUSINESS-COUNTRYWIDE-INQUIRY-DC.jpg"><img class="alignleft size-full wp-image-118" title="BUSINESS-COUNTRYWIDE-INQUIRY-DC" src="http://www.quickmerchantfunding.com/wp-content/uploads/2010/07/BUSINESS-COUNTRYWIDE-INQUIRY-DC.jpg" alt="" width="353" height="232" /></a></p>
<p>Countrywide&#8217;s VIP section, established to handle preferential mortgages  for favored customers, serviced a variety of Fannie employees who  handled Fannie&#8217;s business of buying mortgages and selling  mortgage-backed bonds. Recipients included an account manager, a  lobbyist, underwriters, lawyers, a home loan manager, a sales executive  and a credit risk manager.</p>
<p>The documents reveal that when Countrywide was depending on  government-sponsored firms to finance billions of dollars worth of  subprime loans that touched off the housing meltdown, it was giving  employees at the largest of those companies — Fannie Mae — sweetheart  deals on their own home loans.</p>
<p>Countrywide was acquired by Bank of  America in mid-2008. The documents were turned over  to the House  Oversight and Government Reform Committee by Bank of  America. The government seized control of Fannie Mae and its smaller  government-sponsored competitor, Freddie  Mac, in September 2008. So far, the takeover has cost  taxpayers $145 billion and is likely to be the most expensive of all the  financial bailouts.</p>
<p>Rep. Darrell Issa of California , the House committee&#8217;s senior Republican,  said Countrywide&#8217;s preferential VIP mortgages for Fannie employees  spiked in 1998, when Countrywide was negotiating volume discounts on the  subprime mortgages it was selling, and again from 2001 to 2003, at the  edge of a housing and mortgage boom.</p>
<p>In a letter to the Federal  Housing Finance Agency — the government agency that  regulates Fannie Mae and a smaller competitor, Freddie  Mac — Issa said Countrywide&#8217;s 153 loans to 37 Fannie  employees were part of a attempt to vastly expand business with Fannie  to the detriment of Freddie. Though government-chartered institutions,  both Fannie and Freddie were owned by private stockholders.</p>
<p>&#8220;In 1999, Countrywide reached an exclusive agreement to sell Fannie Mae  billions of dollars in mortgages at a discounted rate,&#8221; Issa said in the  letter.</p>
<p>Records compiled by a trade publication, Inside Mortgage Finance, show  Fannie rapidly expanding its purchases of Countrywide mortgages and a  decline in sales of them to Freddie.</p>
<p>In 1998, Countrywide sold $25.6 billion in loans to Fannie and $17.7  billion to Freddie. By 1999, the figures were $30.8 billion to $11.2  billion in Fannie&#8217;s favor. By 2004, the spread was much wider: $67.7  billion in Countrywide mortgages sold to <strong>Fannie Mae</strong> compared with $2.9  billion in mortgages sold to Freddie Mac.</p>
<p>Also among the subpoenaed documents was a May 2001 &#8220;confidential and  proprietary&#8221; e-mail from a Countrywide official to other company  officials discussing the sensitivity of the discounted VIP mortgage loan  to Daniel Mudd, then Fannie&#8217;s vice chairman and chief operating  officer. He later became chief executive.</p>
<p>&#8220;Make sure the branch and RVP understand the sensitivity of this deal,&#8221;  the e-mail said. &#8220;We already are taking a loss, it would be horrible to  add a service complaint on top and lose any benefit we generate.&#8221; The  meaning of RVP is unclear.</p>
<div class="tweetthis" style="text-align:left;"><p> <a target="_blank" rel="nofollow" class="tt" href="http://twitter.com/intent/tweet?text=VIP+Loans+By+Countrywide+http%3A%2F%2Fis.gd%2F4Cm1BI" title="Post to Twitter"><img class="nothumb" src="http://www.quickmerchantfunding.com/wp-content/plugins/tweet-this/icons/en/twitter/tt-twitter.png" alt="Post to Twitter" /></a> <a target="_blank" rel="nofollow" class="tt" href="http://twitter.com/intent/tweet?text=VIP+Loans+By+Countrywide+http%3A%2F%2Fis.gd%2F4Cm1BI" title="Post to Twitter">Tweet This Post</a></p></div>]]></content:encoded>
			<wfw:commentRss>http://www.quickmerchantfunding.com/vip-loans-by-countrywide/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
	</channel>
</rss>

