Pat Dollard | Young Americans

WASHINGTON, June 9 /PRNewswire-USNewswire/ — RNC Press Secretary Alex Conant released the following statement today:

“Barack Obama routinely rails against lobbyists and corporate insiders, yet his campaign is stocked with both. Now it turns out that the man leading his vice presidential selection team is receiving highly questionable loans. With millions of Americans struggling to pay their mortgages, it raises serious questions about Obama’s judgment when we learn members of his campaign leadership are receiving favors that the average American would never get. With Obama discussing the economy today, he needs to stand up and address the mortgage scandals within his campaign.”

During His Presidential Campaign, Barack Obama Has Criticized CEO Compensation And Countrywide Financial:

Obama: “[I]f you’re a Wall Street CEO today, it doesn’t seem to matter whether you’re doing a good job or a bad job for your shareholders and workers: You’ll be rewarded either way.” (Sen. Barack Obama, Press Conference, 4/11/08)

Obama: “And so these are the folks who are responsible for infecting the economy and helping to create a home foreclosure crisis. Two million people may end up losing their homes. … Here’s the thing, though: When Countrywide Financial engineered a sale of its company, the two CEOs, the two people in charge of the company got $19 million bonuses. So they get a $19 million bonus while people are at risk of losing their home. What’s wrong with this picture?” (Sen. Barack Obama, Remarks At A Campaign Event, Lancaster, PA, 3/31/08)

But Jim Johnson, A Former CEO Of Fannie Mae And Top Obama Campaign Adviser, Received Special Loans From Countrywide:

Jim Johnson, A Former CEO Of Fannie Mae Chosen To Lead Obama’s Vice Presidential Search Committee, Received Special Loans From Countrywide Financial CEO Angelo Mozilo. “Countrywide Financial Corp. makes mortgage loans through a vast network of offices, brokers and call centers. But a few customers have gotten their loans a special way: through Countrywide Chief Executive Angelo Mozilo. These borrowers, known internally as ‘friends of Angelo’ or FoA, include two former CEOs of Fannie Mae, the biggest buyer of Countrywide’s mortgages, say people familiar with the matter. One was James Johnson, a longtime Democratic Party power and an adviser to Sen. Barack Obama’s campaign, who this past week was named to a panel that is vetting running-mate possibilities for the presumed nominee.” (Glenn R. Simpson and James R. Hagerty, “Countrywide Friends Got Good Loans,” The Wall Street Journal, 6/7/08)

– While CEO Of Fannie Mae, Johnson And Mozilo Worked Closely And Maintained A “Close Friendship.” “From 1991 to 1998, Mr. Johnson served as CEO of the Federal National Mortgage Association, also known as Fannie Mae, which worked closely with Countrywide, one of the nation’s leading lenders and loan servicing companies. In 1996, Mr. Johnson named Mr. Mozilo as chairman of Fannie Mae’s national advisory council. A 1999 article in the American Banker said the two men had a ‘close friendship.’” (Josh Gerstein, “Top Talent Scout For Obama Tied To Subprime Lender,” The New York Sun, 6/9/08) Hidden List

“Property Records Show Mr. Johnson Has Received More Than $7 Million In Loans From Countrywide Since 1998, The First Coming In The Waning Days Of His Fannie Mae Tenure.”(Glenn R. Simpson and James R. Hagerty, “Countrywide Friends Got Good Loans,” The Wall Street Journal, 6/7/08)

– At Least Two Of The Mortgages Were At Rates “Below Market Averages.” “The Journal said at least two of the mortgages, among a series of loans made available to people Countrywide officials called ‘friends of Angelo,’ were at rates below market averages, though it is difficult to predict a market rate without access to nonpublic information about a borrower’s credit history and other factors that can reduce interest charges on a loan.” (Josh Gerstein, “Top Talent Scout For Obama Tied To Subprime Lender,” The New York Sun, 6/9/08) Hidden List

As Recently As 2003, Johnson Has Praised Mozilo’s Leadership Of Fannie Mae, Calling It “Remarkably Impressive.” “Since leaving Fannie Mae, Mr. Johnson has lavished praise on Mr. Mozilo’s performance, calling it ‘remarkably impressive’ in a 2003 interview with BusinessWeek. ‘By strengthening servicing in good times, Countrywide has done a brilliant job of insulating itself for the down cycle,’ Mr. Johnson told Fortune in 2003.” (Josh Gerstein, “Top Talent Scout For Obama Tied To Subprime Lender,” The New York Sun, 6/9/08)

– NOTE: “In Recent Months, The Job Has Been Looking Less Than Brilliant, As Countrywide Reported Billions In Losses, Much Of It From So-Called Subprime Loans Made To Borrowers Unqualified For Typical Loans.” (Josh Gerstein, “Top Talent Scout For Obama Tied To Subprime Lender,” The New York Sun, 6/9/08) Hidden List

NOTE: Johnson Is Also A Bundler For Obama’s Presidential Campaign And Has Committed To Raising $100,000 To $200,000.(Obama For America Web site, www.barackobama.com, Accessed 5/19/08)

SOURCE Republican National Committee