Fannie’s Cozy Ties to Countrywide

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Human Events:




The Obama Administration managed to move financial regulatory reform in July with almost no mention of Fannie Mae and Freddie Mac, a feat that could be likened to cracking down on fast food without mentioning McDonald's. But the latest revelations about the federally backed mortgage giants could give even the most hardened everyone-deserves-a-house-they-can't-afford Democrat pause.

It turns out that Fannie Mae officials weren't just doing business with the execs at Countrywide Home Loans, they were actively schmoozing them. An internal Fannie Mae "Customer Engagement Plan" issued in 2004 outlines strategies designed to "deepen our relationship at all levels with Countrywide," including squeezing into the same foursome at golf tournaments.

Under "Fannie Mae's Top Strategic Business Objectives with Lender," the memo lists as its second priority, "Create barriers to exit partnership." The document then lists 15 Countrywide executives, starting with Chairman Angelo Mozilo, with suggestions on where to "meet and greet" him and "desired outcomes."

"We will be successful when Angelo influences the industry or his organization on our behalf," according to the document, obtained by HUMAN EVENTS/Fox Business.


What's ironic in retrospect is that Countrywide was all too happy to sell its subprime mortgages to Fannie, whether or not its top executives bonded on the back nine. The mortgage finance behemoth bought more loans from Countrywide than any other lender—Countrywide accounted for 28% of Fannie's mortgages purchases in 2007, and Fannie's eagerness to soak up those high-risk loans enabled Countrywide to sell even more shaky mortgages.