Fannie employees accepted discount Countrywide loans, documents show

TRD NEW YORK /
Jul.July 21, 2010 12:30 PM

Countrywide Financial is under fire for allegedly giving preferential loans to numerous Fannie Mae employees during the run-up to the housing market collapse, according to the Associated Press. Countrywide, which had been the largest granter of subprime mortgages in the nation, gave discounted mortgages to more than three dozen Fannie Mae employees, according to company documents released under a subpoena from Congress. The loans were reportedly granted in the midst of a burgeoning multi-billion dollar business relationship between the two groups, potentially creating a significant conflict of interest. Sibling organization Freddie Mac has a strictly-worded policy against that practice, according to Doug Duvall, a spokesperson for the group. “We have a code of conduct that says employees cannot solicit or accept discount prices or more favorable loan terms on the basis of their being Freddie Mac employees,” Duvall said. Fannie Mae representatives have declined to comment on the accusations. [AP via HuffPo]

 

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