More Countrywide Junkets Under Fire

February 29, 2008 No Comments »


Jane Wells over at CNBC’s Funny Business blog has been reporting on two separate events scheduled by Countrywide to take place in Hollywood, Florida over the next couple months.

Per her research, the first event catering to 300 people was scheduled at The Westin Diplomat Resort & Spa next week, a hotel where room rates start at $400 night.

And according to one of her unnamed sources mentioned in the article, Countrywide spends roughly $4,000 per guest and more than $5 million combined to hold such events, which include celebrity entertainment, gifts, and private jets, among other things.

Interestingly, her report actually garnered a response from Countrywide, which was stated as follows:

“The meetings mentioned in your inquiry are employee sales events that were scheduled some time ago. All such events have been under review. The first event, which was scheduled to begin on March 9, has already been cancelled. The second, which is scheduled for late April, is currently under review.”

Just last week, Countrywide cancelled its ski trip to Avon, Colorado after scrutiny from the Wall Street Journal and other major media forced the company to reevaluate its position.

And based on recent events, it doesn’t sound like it’s going to get much easier for the nation’s top mortgage lender to hold extravagant events.

Earlier this week, Countrywide was accused of charging borrowers facing foreclosure inflated and made up fees for services that never actually took place.

As if selling them option arms wasn’t enough…

(photo: skyseeker)

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