- Three Things the US Can Do To Stop the Dollar's Decline
- Toll Brothers: More Contracts Signed, but Sales Down
- Fed's Lacker: US in a 'Good Place' With Inflation
- Bear Stearn Fund Managers Not Guilty on All Counts
- Commodity ETFs: Returns May Not Match Expectations
- JPMorgan Chase to Hire 1,200 Mortgage Officers
- Home Prices Decline Further In Most Parts of US
- Ponzi Proceeds: Bidding on Madoff's Toys
- Quiz: Do You Know Your Coca-Cola Myths?
- Starbucks Brews Up Growth
- Farr: An Extended Period—No Fat Lady in Sight
- More Upside if S&P Passes This Number: Market Pro
- Murdoch Lashes Out At Google
- Fighting The Flu Vaccine Critics
- Nov. 10: Unusual Volume Leaders
- Shadow Inventory Dwarfs Loan Mods
- The Lloyd's Prayer
- Playing Activision and Other Video Game Stocks: Analyst
MOST SHARED
- Bear Stearn Fund Managers Not Guilty on All Counts
- JPMorgan Chase to Hire 1,200 Mortgage Officers
- Parsing Treasury's Loan Modification Report
- Fighting The Flu Vaccine Critics
- Hottest Zip Codes for Home Prices
- Oil Tomorrow
- Commodity ETFs: Returns May Not Always Match Expectations
- A Squeeze on Customers Ahead of New Rules
- 'Thriller' Art: Warhol's Jackson Work Could Net $700,000
- Bair: Reserve Fund For Dismantling Must Be Set Up
Text Size 
Bank of America is ready to disclose details of Countrywide's former VIP program of preferential mortgages if a law enforcement body, Congress or other government bodies, issues a subpoena, documents obtained by CNBC show.
At the beginning of June, Republican Congressman Darrell Issa, a member of the Committee on Oversight and Government Reform, sent a letter to Bank of America [BAC
Loading...
()
], which bought Countrywide last year, asking it to produce documents related to the VIP program for the period between January 1, 2000 to October 1, 2008.
At the direction of Countrywide founder and then-CEO Angelo Mozilo, the VIP program, or "Friends of Angelo" program, used discounts such as waived fees and interest rate reductions to establish relationships with politically influential borrowers, according to the letter.
 |
AP |
"In many cases, Countrywide facilitated and expedited the loan process for VIPs by ignoring company lending standards," Issa's letter said.
"According to documents obtained by the Committee, when evaluating whether or not to offer preferential treatment to a potentially influential borrower, Countrywide officers openly weighed the value of developing a strategic relationship with that borrower against the cost in dollars that would be forfeited by the company to establish that relationship," the letter added.
Neither Issa, nor the Committee on Oversight and Government Reform were available to comment immediately.
Bank of America "promptly discontinued this program upon its acquisition of Countrywide in 2008," the bank said in its response to Issa, but refused to disclose details of it.
"Unfortunately, pursuant to the Bank's practice regarding such requests, and based upon the applicable law, the Bank is unable to provide the requested information at this time," the letter, signed by Steven Ross, Counsel, Bank of America Corporation, said.
Steven Ross was unavailable to comment immediately on the letter.
"The Bank's practice has been to provide confidential customer information only pursuant to subpoena, whether that request comes from law enforcement, Congress or other governmental bodies," it said.
Bank of America "routinely cooperates" with law enforcement and investigating committees, providing them with information related to customers pursuant to subpoena, the letter added.
Print
Email
- Vote and suggest your own, and remember--there's a fine line between a hero and a zero.
- If you are lucky enough to have money and the time, this is a great time to see America, says CNBC's Jane Wells.
- What’s powering your microwave, fridge and computer? Part of it is fuel from Russian nuclear weapons. The NYT reports.
- One author sees lessons for you in Disney’s recent Makeover of Mickey Mouse: “Nice” doesn’t always win.
- With 123 years of history, slogans and commercials, Coca-Cola is the most recognized brand on earth.
- The opening of a virtual pet store in “World of Warcraft” could prove a cash bonanza for Activision-Blizzard.
Data is a real-time snapshot *Data is delayed at least 15 minutes