Bank of America Hit with Subpoena Over Countrywide VIP Program
Bank of America Corp was issued a subpoena Wednesday by the head of the House of Representatives oversight committee. The committee is seeking information about mortgage lender and BoA subsidiary Countrywide concerning its home loans program for "VIPs."
The subpoena is part of an ongoing investigation that was started two years ago by US Representative Daniel Issa, who chairs the committee, into claims that the program gave preferential treatment and better loan terms to friends and allies of Countywide's former CEO Angelo Mozilo. In fact, the program was informally referred to as the "Friends of Angelo" program within the company.
The subpoena issued Wednesday orders BoA to produce documents related to the program no later than March 7th.
"This subpoena will allow us to obtain the information needed to answer the outstanding public interest questions regarding the full size and scope of the VIP program. The American people have a right to know the totality of who participated in the Countrywide's VIP program and what they did in return for access to it," Issa said in a statement.
A spokesman for BoA, meanwhile, said the program was suspended after the bank acquired Countrywide, adding that the bank would have no further comment on the matter. BoA acquired Countrywide in July, 2008, making BoA not only the largest US bank in terms of assets, but also the largest domestic loan servicer.
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