Nov 26
Senator Chuck Schumer (D-NY) sent a letter on Monday
to Ronald A Rosenfeld, Chairman of the Federal Housing Finance Board,
expressing his “serious concern over the lending practices of the Federal
Home Loan Bank of Atlanta, specifically in regard to the significant
volume of advances made to Countrywide Bank.”
Schumer stated that Countrywide was reported to hold $27
billion of “pay option ARMs” as of the end of September, over
one-third of all of the loans held for investment by the bank. The
Senator quoted a Wall Street Journal report that 91 percent of
Countrywide’s option ARMS issued last year were…