Even Multimillionaires Need Countrywide
Ed McMahon doesn't seem to have used his millions wisely.
ReconTrust, a unit of mortgage lender Countrywide Financial, on Feb. 28 filed a notice of default on a $4.8 million Countrywide loan backed by Mr. McMahon's home. The notice was filed with the Los Angeles County Recorder's Office but hasn't previously come to light. According to the filing, Mr. McMahon was then about $644,000 in arrears on the loan. It isn't clear whether Countrywide still owns the loan or is acting on behalf of investors who acquired it. Public records also show that Mr. McMahon had a separate home-equity line of credit from Countrywide of up to $300,000 secured by the same house.
The government should immediately consider aiming some Fiscal Stimulus at Mr. McMahon and other rich folks who have -- through no fault of their own -- found themselves in millions of dollars in debt. It would be un-American to expect venerable entertainers to pay back their loans when times get tough, just as it is un-American to expect anyone else to pay back their loans when things don't go as planned.