Posted on 06/13/2008 5:14:27 PM PDT by mdittmar
WASHINGTON - Senate Banking Committee Chairman Christopher J. Dodd, a leader of Congress' efforts to help homeowners ensnared in the subprime mortgage meltdown, reportedly got special treatment on his own mortgages from the CEO of Countrywide Financial Corp., a company whose practices he has called "abusive."
At least one other lawmaker, Sen. Kent Conrad, D-N.D., also benefited from the VIP treatment after placing a personal call to Countrywide CEO Angelo Mozilo seeking a mortgage.
Both senators say they weren't aware they were getting special deals.
Still, their involvement in a special program that awarded discounts and waived fees for "friends" of Mozilo — first reported by Conde Nast Portfolio magazine's Web site — raised questions about whether lawmakers weighing a homeowner rescue themselves benefited from the actions of a leading offender in the mortgage meltdown.
It could be especially damaging for Dodd, D-Conn., one of four Senate Democrats who pursued his party's 2008 presidential nomination, given his high-profile role in crafting the housing rescue.
"As a United States senator, I would never ask or expect to be treated differently than anyone else refinancing their home," Dodd said in a statement.
Lawmakers' participation in the VIP program is coming to light just days after similar revelations about former Fannie Mae CEO Jim Johnson prompted Barack Obama, the presumptive Democratic nominee, to ax Johnson from his vice presidential vetting team.
Conrad, the Budget Committee chairman, said it was Johnson who referred him to Mozilo in 2002 when the North Dakotan was seeking a loan to buy a vacation home in Bethany Beach, Del.
"I called (Mozilo). I said, 'I'm buying this property. Would you be interested in the mortgage?', and he said, 'Yeah. Call these people and we'll take a look,'" Conrad said.
"I did not think for one moment — and no one ever suggested to me — that I was getting preferential treatment," Conrad said.
Portfolio cited internal Countrywide documents showing that the company made two loans at special rates to Dodd in 2003. It took three-eighths of a point off a $506,000 loan to refinance a Washington townhouse — saving Dodd about $2,000 a year in interest payments — and knocked a quarter-point off a $275,042 loan to refinance a home in East Haddam, Conn., a savings of about $700 a year.
Dodd said he and his wife "did not seek or expect any favorable treatment. Just like millions of other Americans, we shopped around and received competitive rates."
Mozilo reportedly instructed an employee to give Conrad a 1-percent discount off his interest rate on a $1.07 million loan in 2004 to refinance his vacation home, a savings of about $10,000 a year.
Conrad said the terms he received from Countrywide were no better than market rates. But his former loan officer has since acknowledged to Conrad that Countrywide dropped his rate a full percentage point.
"If they did me a favor, they did it without my knowledge and without my requesting it," Conrad said. "I have not done one single thing wrong here."
Countrywide also made an exception in lending Conrad $96,000 in 2004 to buy an 8-unit apartment building from his brothers. The company had a policy of only providing loans for buildings of four units or fewer.
"They said they frequently made exceptions, especially for good customers," Conrad said.
An internal e-mail from Mozilo, however, said the exception was "due to the fact that the borrower is a senator," according to the Portfolio report.
The magazine said other participants in the company's VIP program included former Secretary of Housing and Urban Development Alphonso Jackson, former Secretary of Health and Human Services Donna Shalala, and former U.N. ambassador and assistant Secretary of State Richard Holbrooke.
In a statement Friday, Countrywide did not address questions about the VIP program. "Protecting customer privacy is of utmost importance and we are aggressively undertaking measures to prevent further disclosure of private customer information," the company said.
Johnson, the former Fannie Mae executive, did not respond Friday to requests for comment.
Mozilo received compensation worth more than $22.1 million and cashed $121.5 million in stock options in 2007, while Countrywide posted a loss of over $700 million and saw its stock plummet 80 percent. The company agreed in January to be acquired by Bank of America Corp. for $4.1 billion in stock.
Countrywide has come under fire for its lending practices, including providing mortgages with low initial "teaser" rates that balloon higher than borrowers can afford. Dodd and other Banking Committee Democrats wrote to Federal Reserve Chairman Ben Bernanke in December 2007 singling out Countrywide and calling the loans "abusive."
A watchdog group, Citizens for Responsibility and Ethics in Washington, called Friday for House and Senate investigations of Dodd and Conrad, and any other lawmakers who may have received preferential mortgages through the Countrywide program.
Rep. Mark Souder, R-Ind., said Congress should hold hearings on "Friends of Angelo" loans.
Souder told the Fox Business Network, "The question is, who are the friends? What is the list? How is it done? What does it mean? If we don't pursue it, it would show preferential treatment."
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Another one?? See my blog post about this very thing!!
“I did not think for one moment — and no one ever suggested to me — that I was getting preferential treatment,” Conrad said. Hahahahahahah
Who, me?
You know politicians are honest and above board. Especially us dhimmicRATS.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
The stones on these folks..
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
two loans at special rates to Dodd in 2003. It took three-eighths of a point off a $506,000 loan to refinance a Washington townhouse — saving Dodd about $2,000 a year in interest payments — and knocked a quarter-point off a $275,042 loan to refinance a home in East Haddam, Conn., a savings of about $700 a year.
.
Some are just more equal.
no one cares they have Ds next to their name
they will get a free pass and the sheeple will reelect them, elect an ultra lib Obambi as President and this Republic will be in deep doo doo
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
I think you should. I look forward to reading your post of their response.
If they refuse, you should ask to speak to their supervisor. Obviously somebody at the company has the authority to reward some customers.
Raise your hand if you think it's strange that the head of the banking committee didn't know what the market rate was.
..."They said they frequently made exceptions, especially for good customers," Conrad said...
...An internal e-mail from Mozilo, however, said the exception was "due to the fact that the borrower is a senator," according to the Portfolio report.
Nuff said!
Connecticut ping!
Pay Offs . . . !
More than strange. I think he's lying.
I can’t believe it’s only these two guys.
Well,that makes two of us;)
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