Lender CEO OK'd Judge's Refi While Class Action Was Pending, Magazine Says
When a California appeals court judge sought a $1 million mortgage and a $900,000 credit line to refinance his 8,200-square-foot home in January 2004, a loan officer for Countrywide Financial determined that the credit line was “above what guidelines allow.”
But the mortgage lender’s chief executive, Angelo Mozilo was the Countrywide representative with whom Judge Richard Aldrich initially made contact when he sought the refi. And he told the loan officer to go ahead, approve the loan, close it as soon as possible and not worry about the deal, reports Portfolio magazine. Countrywide also waived a half-point fee of $5,000 on the loan.
The deal was part of a bigger Countrywide program that provided favorable mortgage deals to VIP borrowers, the article says.
At the time Aldrich got his Countrywide loan, the magazine writes, “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.”
Citing an unnamed individual familiar with the case, the magazine says Aldrich didn’t disclose his relationship with Countrywide to the plaintiffs. Reached by the magazine by telephone, he denied that he had received a below-market loan, the article says, and hung up.
Hat tip: L.A. Land (Los Angeles Times).
