Housing Industry Ramps Up Political Donations

Wall Street Journal ^ | July 5, 2008 | Elizabeth Williamson

[CutePuppy]

WASHINGTON -- The housing industry already has given more money in political contributions this election cycle than in the entire previous cycle, while winning favorable provisions in an emergency housing bill moving through the legislature.

Through May, mortgage bankers and brokers, real-estate companies and home builders had given more than $95 million to federal candidates and political parties so far this election cycle, according to the nonpartisan Center for Responsive Politics. That compares to about $57 million at this point in the 2006 cycle.

The recipients include people with key roles in the legislation. On the Senate Banking Committee, they include Chairman Christopher Dodd (D., Conn.), ranking Republican Richard Shelby of Alabama, and Sen. Elizabeth Dole (R., N.C.). On the House Financial Services Committee, recipients include Rep. Paul Kanjorski (D., Pa.), committee Chairman Barney Frank (D., Mass.) and Rep. Spencer Bachus (R., Ala.)

.....

Lawmakers say the money is needed to pay rising campaign costs. The idea that it would influence their positions on legislation is "B.S.," said Rep. Frank.

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Big donors include Countrywide Financial, which has given both through its own political-action committee and through trade-group PACs. The lender, the subject of at least three state probes of possible mortgage fraud, has just been taken over by Bank of America Corp.

The PAC gave $10,000 to Sen. Dodd, who has drawn criticism over mortgage loans arranged for him through former Countrywide Chief Executive Angelo Mozilo. Sen. Dodd, who has said he did nothing improper in being a Countrywide borrower, didn't respond to a request for comment on the campaign money.

Countrywide's PAC, which closed with the lender's acquisition, had given about $289,000 to federal parties, candidates and committees this election cycle, according to the Center for Responsive Politics.

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[CutePuppy]

As a sample, here are Angelo Mozilo's personal political contributions, a little bit for everybody:
Angelo Mozilo, 70, Countywide Financial co-founder

[Impy]

Giving to both parties is disgusting, let’s call it what it is, bribery.

[stravinskyrules]

Your government at work.

Corporate welfare is a pox on this country.

Sorry folks, it's the same story...oil, coal, gas, auto, housing, banking, insurance...etc..etc...

None of them have to belly up to the bar and take responsibility for bad business practices because the politicians will come to their rescue.

Why haven't we made progress towards energy independence in the last 30 years?

Go figure...

[CutePuppy]

Giving to both parties is disgusting, let’s call it what it is, bribery.

Yes, as a matter of principle. As a matter of strategy and politics, they would say "it's just business".

That's how things are done (often semi-officially) in many third world countries and "banana republics". Looking at the current makeup of Congress or states' "officials", who could say we are any different?

[SatinDoll]

The only way to really, really put a nail through the heart of this blood sucking corrupt monster is to do away with the tax structure. That is what really propels the majority of lobbyists.

It is the IRS exemption for mortgage interest on our tax returns that drives this Congressional money monster. No income tax, no interest exemption, thus no need to regulate. How sweet it is.

Customers will go to the lowest interest rate providers available like moths to bright light.

Competition - it’s a beautiful thing!

[CutePuppy]

The only way to really, really put a nail through the heart of this blood sucking corrupt monster is to do away with the tax structure. That is what really propels the majority of lobbyists.

Not nice! You simplify tax structure and you do away with the power that Congress craves the most. Lobbyists would still be there to "help" divide the (likely, larger) tax revenue pie, but Congress critters would lose the power of social engineering, societal behavior modification and financial redistribution through the use of tax code. That's where the largest part of Congressional power and corruption resides.

[raybbr]

It is the IRS exemption for mortgage interest on our tax returns that drives this Congressional money monster.

Oh, please. Blaming homeowners for this mess is such a crock. Politicians are corrupt for a lot of reasons. Interest mortgage deductions on my tax return is certainly not one of them.

[Wolfie]

Ah, of course, it’s their “environment” that leads them to be crooks. Sounds like Midnight Basketball thinking to me.

[jmaroneps37]

They build in the suburbs. People drive to and from the suburbs. If they donate to democrats they’re ash holes. democrats have caused the gas crisis and ground the economy to a stand still. Now nobody can afford to buy in the burbs. Thanks to the traitorous rat we are in trouble.

[SatinDoll]

No, no, no! I’m not blaming homeowners. Far from it.

It is exemptions “like” the interest exemption homeowners get in the tax code, replicated millions of times over, that attract agents who lobby for special interests wanting similiar expemptions for their clients.

If we didn’t have such a monstrous tax code, who knows? Maybe our interest rates for mortgages would be low BECAUSE we could keep more of what we earn rather then have it suctioned off in income taxes!

Corruption would no doubt exist even without an income tax code - I know it did in the 1890’s in New York State government.