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According to testimony in an SEC lawsuit, the Calabasas firm’s co-founder fostered the practice of making exceptions to its lending standards.
The late “Tonight Show” announcer Ed McMahon was far from the only person to get a special mortgage thanks to Countrywide Financial Corp. co-founder Angelo Mozilo.
Mozilo approved so many loans that fell outside company guidelines that at least one high-ranking Countrywide executive questioned them, drawing heated responses from Mozilo, according to testimony filed in a Securities and Exchange Commission lawsuit.
The people who got such loans were among a group of Countrywide borrowers known within the company as “Friends of Angelo” or VIP customers.
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