Judge, a ‘friend of Angelo,’ ruled for Countrywide
This article was originally on a blog post platform and may be missing photos, graphics or links. See About archive blog posts.
A California Court of Appeal judge whose mortgage was personally approved by former Countrywide Financial Chief Executive Angelo Mozilo later ruled in favor of Countrywide in a class-action lawsuit, Portfolio magazine reports in its latest issue.
Portfolio’s Dan Golden reports that Richard Aldrich, a California Court of Appeal judge, went to Countrywide in 2004 to refinance the loan for his 8,200-square-foot house in Westlake Village; his application, assigned to loan officer Robert Feinberg, sought a $1-million loan and a $900,000 line of credit, the magazine reports.
Portfolio: ‘By email, Feinberg alerted Mozilo that the credit line was ‘above what guidelines allow.’ Mozilo responded, ‘Go ahead and approve the loan, and close it as soon as possible. Don’t worry about this deal, it’s golden.’ Countrywide further waived half a point, or $5,000 on the million-dollar loan.’
More: ‘That wasn’t Aldrich’s only contact with Countrywide. At the time he refinanced, a class-action lawsuit against Countrywide was pending before the appellate court, brought by borrowers contending that the company offered an inadequate payment to settle allegations that it charged excessive fees for credit reports. That August, Aldrich was part of a three-judge panel that unanimously rejected the borrowers’ appeal.’
Portfolio reports that Aldrich, in a brief telephone exchange with the magazine, denied that he had received a below-market rate on the loan and then hung up. The magazine reports he did not disclose his relationship with Countrywide to plaintiffs in the class-action suit.
The entire article is worth a look, it sheds new light on the ‘friends of Angelo’ connections, and names a few more beneficiaries of Mozilo’s personal attention, including CNN commentator Paul Begala. In one internal exchange, a Countrywide executive urges special treatment for a congressional staff lawyer on a committee overseeing housing issues. The internal guidance on handling the lawyer’s loan includes the phrase, ‘No garbage fees.’
Your thoughts? Comments? E-mail story tips to [email protected].
Hat tip: Patrick.net