Press Release: McKeon Loan Documents Raise More Questions

For Immediate Release
January 30, 2012
Contact: Eric Hogensen, 323-761-9514

(Simi Valley) — Congressional candidate Dr. Lee Rogers today released the following statement on the ongoing Countrywide mortgage scandal involving his opponent, incumbent U.S. Representative Howard “Buck” McKeon:

“On Friday, Representative McKeon met with The Signal and the Antelope Valley Press to review the documents related to his controversial Countrywide VIP loan. I’m glad Mr. McKeon listened to me and many of his constituents, who called for him to be more transparent on the issue and release his loan documents. In his interview, he defended himself by stating that his loan interest rate was near the prevailing rate in October of 1998, which constituted evidence that he didn’t receive favored treatment.

“However, this doesn’t exclude favoritism because he may not have qualified for the prevailing rate. His business was failing and went bankrupt shortly after that time. Howard and Phil’s Western Wear was millions of dollars in corporate debt, including $400,000 in unpaid state sales taxes.

“The House Oversight Committee uncovered evidence that Rep. McKeon was referred to the Countrywide VIP program by a lobbyist from the Mortgage Bankers Association of America. They also reported that CEO Anthony Mozilo intervened in McKeon’s mortgage and personally approved his loan without any documentation of assets, liabilities, or income.

“Mozilo instructed the loan officer to cut the interest rate by 1 percent, which equates to $68,000 in savings for McKeon over 30 years. This would be a mortgage not available to other borrowers. Those are the facts. Additionally, this also raises a question about how McKeon was able to refinance a home he purchased one year earlier for an additional $315,000.

“The House Oversight Committee reviewed the same documents and found enough evidence to refer this matter to the House Ethics Committee for an investigation.

“Because of the atrocious acts of Countrywide Financial Corp., we must hold accountable those who instigated the housing crisis. Darrell Issa (R-CA) has previously stated that the Countrywide VIP program was nothing less than a bribe to those who were in positions of power. We await the results of the House Ethics Committee’s investigation.”