SEC says ex-Countrywide chief Mozilo approved special mortgages that violated company policies
By APTuesday, August 24, 2010
SEC: Ex-Countrywide chief approved special loans
WASHINGTON — The government says former Countrywide CEO Angelo Mozilo personally approved mortgages for favored borrowers that violated the company’s policies and lending standards.
Countrywide mortgages have been the focus of congressional ethics officials because two senators received them. The Securities and Exchange Commission has accused Mozilo of civil fraud and illegal insider trading. The new allegations specifically cite his role in the special mortgage program.
When Countrywide’s chief risk officer tried to block one of the loans, Mozilo criticized him for getting involved and said the company could well afford to make the special mortgages, the SEC said in a court filing last Wednesday.
