WASHINGTON — Franklin Raines, the former chief executive of Fannie Mae, used a special program at mortgage lender Countrywide Financial to receive a below-market rate on a home loan, contrary to sworn testimony he made to Congress in December, according to the top Republican on the House Committee on Oversight and Government.
Raines' lawyer, however, disputed Rep. Darrell Issa's characterization of events.
Issa (R-Vista) released documents Wednesday that he said showed Raines received discounts and waivers of fees on a June 2003 home loan through the "Friends of Angelo" program, named after Countrywide's then-chief executive, Angelo R. Mozilo.
In response to questioning at a December hearing, Raines said he was not given a home loan through the program that allegedly extended lower rates to prominent executives and politicians nor did he receive preferential treatment on his mortgage.
Once the nation's largest mortgage lender, Countrywide was acquired by Bank of America last year after suffering heavy losses on bad mortgage loans.