by CBS News Investigative Correspondent Sharyl Attkisson
***Read Updated Story with Statements
New documents released by the House Committee on Oversight shed shocking new light on the cozy partnership between Countrywide Financial Corporation and Fannie Mae -- which left taxpayers holding the bag for billions in subprime loans. =http:>
The documents show that dozens of Fannie Mae employees accepted VIP loans and VIP treatment from Countrywide.
According to investigators, Countrywide's VIP treatment could range from special handling of customer phone calls to discounted loan rates worth thousands of dollars on a loan.
Rep. Darrell Issa is asking investigators to see whether the VIP loans violate conduct codes of the government sponsored mortgage funder. According to Issa, employees may have benefitted personally from the risky relationship forged between Countrywide and Fannie Mae, even as the system was falling apart.
Previously named recipients of VIP loans from Countrywide included Senator Christopher Dodd (D-CT) and Senator Kent Conrad. (D-ND) After a yearlong investigation, a Senate ethics committee cleared Sens. Dodd and Conrad saying it found "no substantial credible evidence" that they broke Senate gift rules.
The documents come from Countrywide's successor, Bank of America, which has now produced 44,000 documents under subpoena for the VIP program records. In all, they show 153 Countrywide VIP loans to borrowers employed by Fannie Mae. Some borrowers accepted multiple VIP loans from Countrywide.
According to the documents, the number of loans to Fannie Mae workers spiked twice during Countrywide's VIP program: in 1998 as Countrywide was negotiating a volume discount with Fannie Mae - the House Oversight Committee says that was followed by the exclusive agreement the two arrived at in 1999 to sell Fannie Mae billions of dollars in mortgages for what amounted to a volume discount.
According to the documents, the second spike in Countrywide loans to Fannie Mae workers happened in 2001-2003 on the leading edge of the mortgage boom - from late 2002 and 2004 - when Countrywide expanded its VIP loan unit.
Specifically, around the time that the partners were negotiating their exclusive partnership in 1999, documents indicate Countrywide CEO Angelo Mozilo gave Fannie Mae CEO Jim Johnson preferential treatment on more than $10 million in personal loans.
The documents show Countrywide also gave VIP loans to other senior leadership of Fannie Mae including:
--Then-CEO Franklin Raines, who succeeded Mr. Johnson on Jan 1, 1999.
--Then-Fannie Mae Vice Chairman Jamie Gorelick
--Then-Fannie Mae COO Daniel Mudd
Read the New Documents Below