Chris Dodd, Kent Conrad Tied To Countrywide Scandal

Conde Nast Portfolio:

Two U.S. senators, two former Cabinet members, and a former ambassador to the United Nations received loans from Countrywide Financial through a little-known program that waived points, lender fees, and company borrowing rules for prominent people.

Senators Christopher Dodd, Democrat from Connecticut and chairman of the Banking Committee, and Kent Conrad, Democrat from North Dakota, chairman of the Budget Committee and a member of the Finance Committee, refinanced properties through Countrywide's "V.I.P." program in 2003 and 2004, according to company documents and emails and a former employee familiar with the loans.

Read the whole story: Conde Nast Portfolio

Comments

[dezzertguy]

12:22 AM on 06/20/2008

I guess corruption continues. These guys are as dirty as the day is long. I hope the FBI investigates this situation. This is probably only the tip of the iceberg.

[the964kid]

12:07 PM on 06/15/2008

Is anybody surprised?? Would anybody not take a lower interest loan with no fees if they were offered this??? I'm sure all banks do this with certain 'customers,' and the only reason we're talking about this is because Country Wide is caught up in a scandal. This is exactly why we need transparency and accountability in Washington DC.

[Ping]

10:49 AM on 06/15/2008

There's something wrong with the fact that a mortgage company has a VIP Program. This is akin to bribery.

[smokeystover39]

12:20 PM on 06/14/2008

Whoa Dudes. Put the lynching ropes away and get a clue into the realities of banking. While going to school I worked in the evenings at a B of A as a debt chaser - I was the guy who called you and beat on you for your monthly payment OR we'd take your car. You got the calls because you had a flakey payment history. I asked my boss how come loan interest rates were all over the board. Some people get good rates and others don't. I can remember him looking at me as if I had just fallen off the turnip truck (which I had). He explained that B of A looked at the customer credit worthiness and those who had a bank account (even a small one), paid their bills, a steady job, or successfully financed before with B of A etc got a better rate than those had little or none of these characteristics. Higher interest rates paid for all the nonperforming loans.

Guess what. NONE of the borrowers knew what the other guy was getting rate-wise. No bank is going to say: "We just gave Mr. Good Credit an 8% loan while you - Mr. Putz - received a 10% deal on the same type of loan."

Ascribing evil dealings to Senator Dodd ( in particular) - the guy who fought tooth and nail against the Bu$$$HIES to restore Habaes Corpus - BEFORE any of the facts are known is disingenuous. Snap out of

[NotMcCain]

12:43 PM on 06/14/2008

"NONE of the borrowers knew what rate the other guy was getting".

Just because it can't be said often enough. Are Americans this stupid?

There's NO evidence at all that Dodd did ANYTHING wrong. Whether the lender is Countrywide or First Bank of DC shouldn't make any difference.

Put away the lynching ropes indeed. This is infuriating.

[smokeystover39]

01:40 PM on 06/14/2008

NotMcCain: Ya missed the point - so I will repeat: "Ascribing evil dealings to Senator Dodd ( in particular) - the guy who fought tooth and nail against the Bu$$$HIES to restore Habaes Corpus - BEFORE any of the facts are known is disingenuous. Snap out of it!!!"

Check out Sybyll or Gakabani below - you don't see #2 hemp rope being spun into a noose??

[Myshkin57]

02:50 PM on 06/14/2008

I agree. If Dodd didn't promise anything for a specific rate and didn't know he was getting preferential treatment, it's hard to see how he did anything wrong. And, so long as the bank is not losing money on his loan, it's in their best interest to give him a low rate so that someone with his credit rating doesn't go elsewhere.

[dezzertguy]

12:23 AM on 06/20/2008

Are you serious? Or just joking?

[letsgetsmart]

12:03 PM on 06/14/2008

This story seems to get two kinds of responses, those who live in smallville USA and those from the big city. All of you who think that this is an expose on Dodd , the dems and C-wide should go check out places like San Clemente Ca where lots sell for 5 mil without a house, they have credit cards for 250k with outstanding balances of hundreds of thousands, people go to work in limos and the junior high parking lot is filled with porsches. These high income substantial people do not live in the same world as many others. I will flat out tell you that if you want their business you need to act accordingly or you lose out. Mortgage companies have loan packages called fast and easy because they only check the credit report and appraise the house.

[PKSSK]

10:09 AM on 06/14/2008

The mortgage finance business is the same as any business and part of life; it's all based on who you are, who you know and your credit score. If every politician is asked about their mortgage holder and the terms of their mortgage you can bet they have all recieved special treatment and rates. So, I will wait for the same information to be provided by all members of congress, including McCain, and everyone being considered for VP. This is a story that applies to equality, ethics and the need for transparency that must apply to all state and federal government representatives, but to say this is a practice that is someting new or illegal is rediculous. This is a story that confirms the need for eithics reform and should originate with all members of congress making their financials part of the public domain before we elect them to office. American citizens need to be aware of the financial investments, salaries and the lobbyists investing in their campaign so we can understand who they owe and where their loyalties will fall. I would love to know who has investments within the defense, telecommunications, surveillance, foreign corps and oil industry. This information will tell the public how and who their representatives will truly represent with their votes.

[Lorifromky]

08:48 AM on 06/14/2008

I remember what it was like when I got a mortgage for a condo I bought in my mid-twenties. There were pages and pages of tiny print that I admit I did not read. All I knew was my payment, interest rate, length of loan, and how much I needed to bring to the closing for closing costs. I did not understand the closing costs, but I didn't care, either. I had fair to good credit then, so I knew I was not getting the very best deal. I imagine that Senator Dodd has very good credit, and as such, banks and other financial organizations have to compete for his business. I am sure he got a good deal based on his credit rating and because he is a senator. Did Dodd expect a "you scratch my back and I'll scratch yours" scenario, or did he just think he was getting a good deal? Only Senator Dodd can answer that.

[sybyll]

06:50 AM on 06/14/2008

Oh come on, he says he didn't know that he got a special deal??.
He is head of the banking committee and most assuredly knew what loans cost for 'regular' people.
I live in CT and have felt for quite a while that I have no representation in Washington. We have Lying Joe and Dodd the financial groupie. Just pathetic.

[puffhost]

06:55 PM on 06/13/2008

Whoops!

[gakabani]

05:17 PM on 06/13/2008

NOW YOU GET IT AMERICA. THEY ARE SPECIAL PEOPLE AND THEY NEED TO BE TREATED DIFFERENTLY. WE NEED TO BE TREATED AS DIRT WHILE THEY ARE TREATED WITHA RED CARPET.
THIS IS TOOOOO MUCH TO BEAR!
AMERICA IS A PATHETIC NATION.

[NotMcCain]

02:52 AM on 06/14/2008

Not pathetic. Just stupid.

People with excellent credit and stable, good incomes often get offered attractive loan rates from competing lenders.

Nothing new or exciting here (unlike McCain's $500,000 AmEx credit card with a "0%" interest rate. Now THAT screams, "conflict of interest!" and possibly even "corruption".

[funkalicious]

04:03 PM on 06/13/2008

Chris Dodd is as smarmy as they come, take a look at his presidential donor list. It is full of banking bigwigs who along with their family members filled his pot.

The disgusting thing about the favors they take they rationalize it away and act as if the American public is too stupid and lazy to care or understand.
If you like me wonder how the CountryWide s and the Citi banks and the boiler rooms that sold all the liar loans to dupes and crooks just look at he the gate keepers.

Don't listen to what these Seantors say but look carefully at their actions.
It is a shame because Dodd talks a good game but it is all blah blah blah. the Apple didn't fall far from the tree.... they both look rotten.

[Liberal2]

05:15 AM on 06/14/2008

And Dodd led the democrats who joined rethugs to kill Clinton's SEC reg change that would have prevented the Enron collapse.

He's dirty and always has been.

[barackobama4prez]

03:41 PM on 06/13/2008

Tim Russert of "Meet the Press" has died! OMG! I really liked him.

[MsLiz]

02:51 PM on 06/13/2008

This article leaves a lot unanswered. Did Sen. Dodd phone the local Countrywide office, set up an appointment, and then come to the office with his wife to file an application, like many of us did when the rates dropped? Maybe someone from Countrywide came to his office, that's how it worked once for me. Or did Dodd phone the CEO and tell him he wanted to refinance his two homes at a lower rate? Was there the old "wink, wink, nudge, nudge, say no more"? Since Dodd is chairman of the Banking committee, this needs to be investigated, but don't assume that he is guilty before the facts are known.

[SFkid]

02:49 PM on 06/13/2008

Maybe we should shift to the Presidential nominee that is $100 thousand dollars in debt with American Express. A credit debt that has 0% interest. Why is it that the rich gets these "Special" rates? John McCain are you there?

http://www.huffingtonpost.com/2008/06/13/ready-to-laugh-at-mccain_n_107008.html

[RTIII]

02:37 PM on 06/13/2008

Hype designed to help lessen R losses in November.

There's NOTHING to this. Nothing improper and surely no scandal.

[vernonbc]

06:55 AM on 06/14/2008

Funny how it's the Democrats who are headlined. Does anyone believe that no VIP Republicans got mortgages from this major mortgage company?