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Report: Countrywide Used ”VIP” Loans to Sway Congress

HeadlineJul 06, 2012

A congressional report has found the now-defunct mortgage giant Countrywide Financial offered hundreds of discount loans to lawmakers, government officials and other so-called “VIPs” in a bid to block legislation that would threaten its profits. The report says Countrywide gave hundreds of loans, often with reduced interest rates or fees, to VIPs, including legislators, their staff, and heads of the government-run mortgage company, Fannie Mae. Countrywide played a key role in the housing crash and was once the country’s biggest mortgage lender. According to the report, those who received Countrywide’s special deals were able to influence dozens of legislative measures in the years leading up to the housing crisis.

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