Fannie employees accepted discount Countrywide loans, documents show

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]

 

Related Articles

arrow_forward_ios
A photo illustration of Vishal Garg, chief executive officer, Better.com (Better.com, iStock)
Better.com CEO returns to role after Zoom layoffs controversy
Better.com CEO returns to role after Zoom layoffs controversy
(iStock/Illustration by Steven Dilakian for The Real Deal)
Black mortgage applicants’ rejection disparity surges
Black mortgage applicants’ rejection disparity surges
Milo Founder and CEO Josip Rupena (iStock, Milo Credit)
Crypto-rich but can’t buy a home? Now you can
Crypto-rich but can’t buy a home? Now you can
(Illustration by The Real Deal)
More than 14K LI residents in mortgage delinquency
More than 14K LI residents in mortgage delinquency
(iStock)
Mortgage rates hit 20-month high
Mortgage rates hit 20-month high
Report: U.S. rents surged 7% from October to November
Report: U.S. rents surged 7% from October to November
Report: U.S. rents surged 7% from October to November
Better.com CEO Vishal Garg
Better.com CEO “taking time off” after layoff saga
Better.com CEO “taking time off” after layoff saga
Better.com CEO Vishal Garg (Better.com, iStock)
Better.com CEO apologizes for botching layoffs, anonymously accusing workers
Better.com CEO apologizes for botching layoffs, anonymously accusing workers
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...