29_35x90 knx_35x90

Local

Report: 2 SoCal Congressmen Got Discounted Loans From Countrywide

View Comments
(CBS)

Reporting Bob Brill

Election Returns
Photo Galleries

LOS ANGELES (KNX 1070/AP) — Two Southern California congressmen reportedly got discounted loans from Countrywide Financial Corp, but deny they even knew the discounts existed.

The Wall Street Journal reported that four congressmen in all received the discounts from the now-defunct lender.

Republican Congressman Howard Buck McKeon, a representative from Santa Clarita said he didn’t know of the lender’s VIP discount program. An aide for McKeon says he “was shocked to hear that his loan had been given a FOA designation by Countrywide 13 years ago because he had no knowledge that this had happened.”

Both McKeon and retiring Simi Valley Congressman Elton Gallegly are named as “Friends of Angelo [Mozilo]” as the program is dubbed. Gallegly also denies knowing about a VIP discount program.

Mozilo was the chairman of the company who was forced to pay nearly $70 million to settle with the Securities and Exchange Commission over toxic loans. Mozilo, however, was not charged with any wrongdoing.

As lawmakers, McKeon and Gallegly are prohibited from receiving special treatment. None of the lawmakers has been accused by an ethics panel or any Congressional committees of any wrongdoing. And they may never be if they convince investigators that they had no knowledge of the discounts.

(TM and © Copyright 2012 CBS Local Media, a division of CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

View Comments
  • http://losangelesforme.com/2012/01/2-socal-congressmen-targets-in-ethics-probe-relating-to-home-loans/ 2 SoCal Congressmen Targets In Ethics Probe Relating To Home Loans | Los Angeles for Me

    [...] Two Southern Caliofrnia congressmen are reportedly being investigated on ethics charges relating to home loans and Countrywide, it was reported this weekend. More from: http://losangeles.cbslocal.com… [...]

  • http://losangelesforme.com/2012/01/2-socal-congressmen-targets-in-ethics-probe-relating-to-home-loans-2/ 2 SoCal Congressmen Targets In Ethics Probe Relating To Home Loans | Los Angeles for Me

    [...] Two Southern California congressmen are reportedly being investigated on ethics charges relating to home loans and Countrywide, it was reported this weekend. More from: http://losangeles.cbslocal.com… [...]

  • Just more of the same

    You have to ask America, after all this, “How is it under that bus anyway?”.

blog comments powered by Disqus
Listen Live!