The collapse of Countrywide Mortgage ranks as a pivotal point in the nationwide housing collapse that swiftly turned into an all out and still ongoing recession for the United States. A recent investigation into that collapse points directly to Democrats, including figures with direct ties to the Obama administration, deeply involved.
First, a refresher from a 2008 article on the subject:
Rules ‘bent’ to provide Obama advisers loans
Two Barack Obama advisers, Franklin Raines and James Johnson, received preferential home loans as industry favors, apparently in deference to their executive positions heading Fannie Mae. Raines and Johnson, as “friends of Angelo Mozilo,” the chief executive of Countrywide Financial Corp. ? the now bankrupt high-flying loan originator in the sub-prime mortgage debacle ? were funneled millions of dollars for personal home loans. Mozilo himself made exceptions from Countrywide policy to provide the two Fannie Mae CEO’s “sweetheart deals.” Obama’s outspoken criticism of Mozilo’s exceptionally high compensation is again under attack as hypocritical in view of the preferential loans to Raines and Johnson and the degree to which Countrywide’s failed sub-prime loans contributed to the… LINK
Now a more recent report on this same topic:
Report: Countrywide won influence with discounts
The former Countrywide Financial Corp., whose subprime loans helped start the nation’s foreclosure crisis, made hundreds of discount loans to buy influence with members of Congress, congressional staff, top government officials and executives of troubled mortgage giant Fannie Mae, according to a House report.
…“The Committee’s investigation found Countrywide lobbyists and CEO Angelo Mozilo used discounted loans as a tool to ingratiate itself with policymakers in an effort to benefit the company’s business interests,” said Rep. Darrell Issa, a California Republican who heads the committee. “This preferential treatment — that varied depending on the influence of the borrower — was not routinely offered to the public.”
Issa said that while Mozilo mocked Fannie Mae and top executives for its crony capitalism business model, he would nonetheless personally intercede to ensure executives had access to discounted Countrywide loans. “These relationships helped Mozilo increase his own company’s profits while dumping the risk of bad loans on taxpayers,” the report said.
…Among those who received loan discounts from Countrywide, the report said, were…Former Fannie Mae heads James Johnson, Daniel Mudd and Franklin Raines. LINK
Each of those three men listed – James Johnson, Daniel Mudd, and Franklin Raines, had direct and longstanding ties with the Democratic Party and/or Barack Obama himself. Johnson has long been a Democratic Party advocate, and served on Obama’s Vice Presidential selection group. He also acted as an Obama campaign bundler, raising nearly a half million dollars for the campaign.
Like Johnson, Daniel Mudd is a longtime supporter of the Democratic Party – though perhaps a more radicalized version. During his tenure, Fannie Mae contributed well over $100,000 to Barack Obama’s political career – and much more to the Democratic Party.
And then there is Obama adviser and Democratic Party fixture Franklin Raines. In addition to his work with the Obama campaign, Raines also served inside the Clinton White House as its budget director. During the 2008 campaign, once Raines’ involvement with Obama became public, both indicated little to any communication was taking place between Raines and the Obama campaign – that in essence, there were “just some phone calls.” Uh-huh.
Between these three men, they received hundreds of millions of dollars in compensation, and played among the most crucial roles in bringing about the economic collapse of 2008 – a collapse tied directly to the housing bubble that Countrywide helped manfucature due in great part to the influence of powerful figures within the Democratic Party.
Here are a couple of videos – the first being Daniel Mudd addressing the Congressional Black Caucus (with Obama attending just prior to receiving his $120,000-plus Countrywide payoff) and the second detailing how Democrats purposely ignored the wrong doings of institutions such as Countrywide, Fannie Mae and Freddie Mac that were directly responsible for the economic collapse of 2008: