Obama's VP search leader steps down

By Steve Holland

CHICAGO (Reuters) - The chief of Democrat Barack Obama's search for a vice presidential running mate stepped down from that role on Wednesday over questions about loans he received from a company involved in the U.S. housing crisis.

The Illinois senator said in a statement that Jim Johnson had decided to quit the unpaid position in order to avoid being a distraction from the process of gathering information about possible vice presidential candidates.

Obama clinched the Democratic presidential nomination last week and will face Republican John McCain in the November election.

"Jim did not want to distract in any way from the very important task of gathering information about my vice presidential nominee, so he has made a decision to step aside that I accept," Obama said.

Obama appointed Johnson last week to a three-member team heading his search for a No. 2. Other members of the team include Caroline Kennedy, daughter of the late President John Kennedy, and former Deputy Attorney General Eric Holder.

"We have a very good selection process under way, and I am confident that it will produce a number of highly qualified candidates for me to choose from in the weeks ahead," Obama said.

The Wall Street Journal had reported Johnson, former head of the mortgage giant Fannie Mae, received private loans at below-market rates from Countrywide after he left Fannie Mae.

Countrywide has been accused of helping fuel the subprime mortgage crisis with risky loans.