More On Mozilo

“The Justice Department is making very serious inquiry into any possible wrongdoing that may involve (former Countrywide CEO) Anthony Mozilo, other Countrywide employees, Sen. Chris Dodd, Sen. Kent Conrad, (former Fannie Mae CEO) Franklin Raines or other public officials,” said Feinberg’s lawyer, Anthony Salvano. “Robert has always cooperated thoroughly with authorities and is strictly a witness in their investigation.”

‘Friends of Angelo’s’
Salvano said the prosecutors and FBI agents seemed focused on whether the preferential treatment given to V.I.P. customers was part of an effort by Countrywide to buy influence - as well as on the conduct of each public official who received a mortgage from Countrywide.

Feinberg says that Countrywide’s clients in this program were known by a nickname.

“We called them F.O.A.’s,” Feinberg told NBC News, “which were Friends of Angelo’s.”

“Angelo” is Countrywide’s then-CEO, Angelo Mozilo, who once called an ordinary borrower’s plea for help on his mortgage payments, “disgusting.”

But Mozilo seemed to have a different attitude toward people of influence. In fact, Feinberg says part of his job was to hammer home to the V.I.P. clients that they were getting special deals.

“You spoke in a manner that was different than you spoke with a regular customer,” said Feinberg. “‘Your loan has been specially priced by Angelo.’ ‘You’re getting special discounts because you’re in the V.I.P. loan department.”

So what would a “Friend of Angelo” get that an average customer would not? According to Feinberg, the possible benefits ran the gamut.

“They got a discount on the interest rate,” said Feinberg. “They got discounts on their fees. They got a free floatdown option before closing.”

In one instance of a “Friends of Angelo” deal, Mozilo sent an e-mail to Feinberg ordering him to “Take off one point” on a loan to Sen. Conrad. That one point equaled a savings of $10,700 in fees.

Feinberg’s client list also runs the gamut. Among those benefitting from the VIP program were four former Cabinet members spanning Democratic and Republican administrations: Henry Cisneros, Richard Holbrooke, Alphonso Jackson, and Donna Shalala. Two former CEO’s of Fannie Mae, James Johnson and Franklin Raines, heads of the government-sponsored entity which bought Countrywide’s mortgages - also received VIP mortgages from Countrywide.

All have denied impropriety and declined to elaborate to NBC News. Some say they had no idea they were getting favorable rates or any sort of discount.

But Feinberg insists part of his job was to make clear to VIP’s they were receiving special treatment.