Ex-Fannie Chief Received Lower Mortgage Rate, Panel Says

Ex-Fannie Chief Received Lower Mortgage Rate, Panel Says

By Zachary A. Goldfarb
Washington Post Staff Writer
Wednesday, March 4, 2009; 6:53 PM


Franklin D. Raines, the former chief executive of Fannie Mae, used a special program at mortgage lender Countrywide Financial to receive a below-market rate on a home loan, contrary to sworn testimony he made to Congress in December, according to the top Republican on the House Committee on Oversight and Government Reform.

Rep. Darrell Issa (Calif.) released documents today that he said show Raines enjoyed discounts and waivers of fees on a June 2003 home loan through the "Friends of Angelo" program, named after Countrywide's then-chief executive, Angelo Mozilo.

In response to questioning at a December hearing, Raines said he was not given a home loan through the program that allegedly extended lower rates to prominent executives and politicians nor did he receive preferential treatment on his mortgage.

Raines' lawyer, Kevin M. Downey, said today that none of the information cited by Issa contradicted that earlier testimony.

But Issa said the documents show otherwise. On June 9, 2003, according to the documents, Raines' assistant was in contact with Countrywide about a new mortgage. An executive in Countrywide's "VIP loan unit," Issa said in a letter to Downey, "arranged a one point discount and waiver of 'junk' fees on Mr. Raines' June 2003 refinance."

The letter says that Raines received a 4.125 percent rate on his mortgage, when the prevailing rate for comparable loans was 5.1 percent. Also, Raines didn't pay the variety fees -- application fees, warehouse fees, processing fees -- borrowers would ordinarily pay.

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http://www.washingtonpost.com/wp-dyn/content/article/2009/03/04/AR2009030402514.html?wprss=rss_business

But he signed up anyway.

they can be negotiated and are! Meme is Obama got "sweetheart" deal too - BAH. So did I - a person can shop around for best loan, a person can opt to pay an extra point or fee in exchange for these so-called
"sweetheart" deals.