Reps. Howard McKeon and Elton Gallegly, both California Republicans, were among the lawmakers who received special "VIP" loans from Countrywide Financial, the Wall Street Journal and New York Times reported.
The "VIP" program, known as the "Friends of Angelo" program, granted loans to participants—including a number of other lawmakers—at lower rates than were available to the public. The program's namesake, Countrywide CEO Angelo Mozilo, paid $67.5 million in penalties to the Securities and Exchange Commission in 2010. Countrywide was acquired by Bank of America in 2008.
Their names were forwaded to House Oversight and Government Reform Committee Chairman Darrell Issa, R-Calif., who is conducting an investigation. Issa's predecessor as chairman, Rep. Edolphus Towns, D-N.Y., is also being investigated. The committee is also investigating a fourth, unnammed House member.
McKeon and Gallegly are not accused of any wrongdoing and denied knowing they were part of the special program.
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