The wsj.com is reporting that “Countrywide Financial Corp. co-founder Angelo Mozilo may have directed the lender to extend preferential treatment on a 1998 loan to Republican Rep. Howard McKeon of California, according to a letter released Tuesday by a senior House Democrat.” The report goes on to say, “The letter from Rep. Elijah Cummings (D., Md.) said that Countrywide records obtained as part of a congressional investigation of its VIP loan program indicate that Mr. McKeon was given “a significant discount on his VIP loan as a direct result of personal intervention” by Mr. Mozilo, who ran the mortgage giant at the time.”

Bob Haueter commented at the Tuesday nights Republican central committee meeting that the McKeon’s got their $315,000 home loan through Countrywide at “1-point below market and junk fees were waived.” Those waived fees may have resulted in a $500 – $1,000 reduction in closing costs. One point on a $315,000 loan would be approximately $68,000 over 30 years.

Haueter’s comments are consistent with a report in rollcall.com which states; “McKeon appears to have received a Countrywide mortgage for $315,000, and Mozilo instructed the individual handling his loan to “take off 1 point, no garbage fees, approve the loan and make it a no doc,” according to documents reviewed by Cummings.”

The rollcall.com report also indicates that McKeon knew about the Countrywide VIP program also known as the “Friends of Angelo” program. Though McKeon is denying knowing about the VIP program, rollcall.com quoted that “a follow-up letter sent to Chairman McKeon provided forms for him to sign and stated: ‘Thank you for allowing COUNTRYWIDE’s VIP TEAM to assist you with your financing needs on the above referenced property.”

As I wrote on Monday, “So it is disappointing to read that McKeon’s spokeswoman said that he was “pretty shocked and angry” to find out that he was listed as a participant in the Countrywide VIP program and is now under investigation by the Congressional Ethics committee.” Buck and Patricia McKeon knew full well that they were getting a below market rate, special VIP loan and claiming any different is a load of crap.

Honesty is always the best policy and the McKeon’s should know better than to deny knowledge of something that they participated in willingly.

Dave Bossert- Commentary

Dave Bossert is a community volunteer who serves on a number of boards and councils. His commentaries represent his own opinions and not necessarily the views of any organization he may be affiliated with or those of the West Ranch Beacon.