BofA subpoenaed over Countrywide’s VIP home loans

The head of the House of Representatives oversight committee issued a subpoena on Wednesday to Bank of America Corp (BAC.N) for information about mortgage lender Countrywide’s home loans program for so-called VIPs.

The subpoena is the latest in a two-year probe by U.S. Representative Daniel Issa, chairman of the committee, into Countrywide Financial Corp’s mortgage program that allegedly gave better loan terms and preferential treatment to allies of former Chief Executive Angelo Mozilo.

The program was known informally as the “Friends of Angelo” inside the mortgage lender.

Bank of America has until March 7 to produce documents related to Countrywide’s VIP and Friends of Angelo mortgage programs.

“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 prepared statement.

A Bank of America spokesman said the company suspended the preferential lending program after the Countrywide deal was completed and had no further comment.

Bank of America bought Countrywide in July 2008, making the largest U.S. bank by assets the largest domestic mortgage servicer.

Charlotte, North Carolina – Reuters
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