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

[jpcline004]

If anyone took the time to read and follow this story besides just the blurb here, they would know the whole story.

The CEO of Countrywide, Angelo Mozilo, had a loan program called FOA (friends of Angelo) which gave VIP, preferential treatment to his friends. Sen. Dodd is one of these friends who received the loan and he refinanced his house with it. This is not a situation where Sen. Dodd went to the local bank and applied for a loan and had no idea he was getting better rates or less fees.

Obviously, as the chairman of the Senate Banking Committee, this creates an apparent conflict of interest. Someone in his position should know better than to accept preferential treatment. It was a boneheaded move.

Do I think he should be removed from office? HELL NO. Am I disappointed that someone I admire did something this careless? YES.

People on this site are too defensive and are unwilling to accept when someone criticizes a Democrat (unless its a Clinton) but if one of McCain's top allies did this people would be calling for his head.

[jhNY]

Mr. Dodd's father's political career ended in disgrace, a fact that Mr. Dodd is more painfully aware of than probably anybody, despite having done many remarkable and brave things (see Nuremburg trials). This should have made him hyper-sensitive to the seductive pitfalls his friends in the financial sector (and he has far too many of them, for my taste, but as Greenwich is in CT, I guess it can't be helped, although I also wish he had not been so determined to be helpful to them) have prepared to tempt him.

His position on committees that govern financial markets and banking regulation make this special rate business look even worse. I am thankful for all Dodd has done regarding the destruction of our habeas corpus protections, and he certainly did fight nearly single-handedly for their defense and restoration. But this is wrong, as is the behavior of Dorgan and all other democrats in office and out who make a show of fighting for the common man while enjoying uncommon and possibly unethical privileges of position.

And please put on your thinking hats. Don't defend the indefensible. If republicans were caught at this particularly troubling trough, folks here would have been marching toward the Capitol with pitchforks and torches.

[naturallight]

Wow!!!

A Corrupt Democrat! Who whudda thunk it? I am shocked!

BTW, his twin brother Joe Biden is a plagiarist.

(looking into my crystal ball i see 8 years into the future when the american sheeple realize that Obama is corrupt as well, depsite his lofty rhetoric.)

[Liberal2]

"...A Corrupt Democrat! Who whudda thunk it? I am shocked!

BTW, his twin brother Joe Biden is a plagiarist..."

Which is why *THIS* democrat wouldn't vote for either in the primary. OTOH, the notion of an honest republican is an oxymoron. In case you were wondering.

[zendem1]

Wow..so does illiteracy run in your family or are you the first? if it's corruption you want, look no further than the Grand Old Pedophiles..You've heard of Jack Abramoff, right?

[CaptainObvious]

I suppose the only reason Senator Dodd fought so hard against telecom amnesty is because of all the greedy trial lawyers who have bribed him.

[MsLiz]

You suppose? That means you are making up lies. That's not helping democracy, that's crap.

[CaptainObvious]

Wow - the concern trolls are out in force on this thread!

Tell me, do all banks charge the same interest rate to everyone, regardless of factors like credit score, term, amount loaned, etc? If not, then please tell me how I can avoid getting into this type of situation, in case I decide to run for office. Do I need to check with every lender in the country, and take an average of their quoted rates, to determine what the "fair market rate" is, and reject anything lower?

And if this was so unethical, and if the only reason Countrywide would hand out such a loan is to gain influence, tell me - what exactly was it that they wanted, and did Senator Dodd vote the way they wanted him to?

[jpcline004]

You can rationalize it any way you want. Its obvious you are not willing to admit that he did anything wrong no matter what I say, but here it goes any way.

Sen Dodd was friends with Countrywide CEO Angelo Mozilo. That is why he got the special VIP, of FOA (friends of Angelo) rate. Its not like he went into a couple banks with his 1040 and some bank slips and applied for a loan. He sure as hell took advantage of his relationship with Mr. Mozilo when he refinanced his house with this loan.

Considering he is chairman of the Banking Committee, this could appear as a conflict of interest with a huge mortgage lender like Countrywide that no doubt lobbies Congress. Nowhere does it say he did them any favors as a result, but someone in his position is a bonehead to even do something that could cause the appearance of collusion or "back scratching"

Spin it however you want, and troll all my posts. I really don't care what you think

[Liberal2]

"...You can rationalize it any way you want. Its obvious you are not willing to admit that he did anything wrong no matter what I say, but here it goes any way...."

Admit??? Admit what? There is no specific evidence he did anything wrong. But I say it stinks. As I don't log the names of every commenter and their point of view.....when have you admitted the wave of corruption, perversion, immorality, and treason flowing from the rethug party?

[letsgetsmart]

I did but it seems to be stuck in pending. Prior to their sale C-wide was the largest conduit into fan/mae and you know that republicans have been campaigning against fan/mae and freddy/mac all through the Bush terms. To be able to take a shot at top dems and fan/mae with the same bs story must make them quiver with joy. Republicans hate fan/mae and freddy/mac because they have been a major controlling influence in the shaping and packaging of A paper loans and you know that they don't make any money when things are clean and stable so they had to go into the subprime market and look where that is today.

[LeeScho]

CaptainObvious:

When it comes to the bankers (Republicans) who provided special rates and consideration to Congressional members with oversight of their industry, you assert thtat neither they nor Dodd did anything wrong.

But when it comes to supporting the illegal activity (or else why amnesty?) of the Telecoms (more Republicans) you gratuitously accuse Dodd of taking bribes from trial lawyers (Democrats).

Let's recapitulate: When there is clear evidence of a questionable activity, you dismiss it out of hand to support your partisan allies. When there is absolutely no evidence of illegal activity, you declare the existence of the activity anyway to support your partisan allies and falsely denigrate your political opponents.

This makes you a lot things, obvious being the least of them.

[NotMcCain]

I think you're missing Captain Obvious's point. There is NO (your words) "clear evidence of questionable activity" here at all. Dems would definitely be the first to criticize Dodd if there were, too.

If you don't believe me, just read some of the post from Dems in this thread, critical of him because they don't understand how loan rate typically fluctuate anyway.

The point is...getting a mortgage loan at a good rate from Countrywide (the nation's largest lender), doesnt' mean you did anything wrong at all.

I'd be a lot more concerned if, like the McCains, the Dodds got an American Express card with HALF A MILLION DOLLAR ($500,000) credit limit -- and ZERO percent interest.

That's really not what you want to see with someone who regulates the industry.

[JoeBlough]

For rying out loud, all politicians get "special" money, rates, gifts, etc.
This has been going on for two hundred years. This is hardly a news item.

[Yuma]

No news!!

[OliverTwist]

The vocabulary used in these stories is perjorative and not consistent with the known facts.

Substituting for facts are biased speculations.

Please dismiss these "journalists" or whatever they are.

[letsgetsmart]

What a pile of crap story. If some banker wants to offer a loan that has no fees or points, they just bump the rate a little like maybe a quarter point. 5.5% to 5.75%. I have booked tons of loans this way for average every day clients. There are real considerations for shaping your loan this way. Many who turn over loans in a short time feel that the loan will not be alive long enough to generate enough at a quarter extra to cover the fees so they got a good deal. Also, some booking agents sell this to people that are less knowledgeable about loan products in order to give them the impression that they were getting a good deal but in reality they are getting screwed because they don't know what they are being charged. I would love to sell the author of this piece a loan! I have written loans for the people that make the satellites launched from the shuttle or doctors or lawyers and I could have screwed everyone of them. I can personally say that loan knowledge is a constantly changing thing and betting that a banker will screw some one before he gives them a deal is a safe bet in most cases. I get a lot of referrals so people must consider me one of the honest ones.

[jpcline004]

hey rollingdivision, are you an accountant too? We seem to be the only Dems here willing to come to terms that Sen Dodd acted negligently, or worse unethically, here.

[CaptainObvious]

Is that what we're calling concern trolls these days?

[jpcline004]

LOL I love how you try to discount me as a troll, but you are the one who commented on every post this guy and I made with ad hominem attacks.

[TekBoss]

Ummm. Isn't the reason we currently have a credit crisis because EVERYBODY GOT A SPECIAL RATE!

And check out the Google ad at the bottom of this page (which CURRENTLY is an add for Countrywide Mortgages - "No Closing Cost Refi. No Points. No Credit Report or Processing Fees).

How do you get more SPECIAL than that?

[jpcline004]

Thats not the point. Its a matter of ethics.

People in public service need to be extra careful they are not getting preferential treatment. You never know when they are gonna come back to collect on their favor. Countrywide isn't doing it to be nice, and I am fairly confident Chris Dodd is smart enough to know better. Its very disappointing because he is someone I admire a lot.

[vippy]

Ethics with politicians? Not only do they all get bribes under the table, they voted to
get an automatic pay increase of $ 15,000 a year. If that tops not all I don't know what.
Germany tried to do the same and people cared enough to petition their politicians
and it was cancelled. Why do people oppose socialism but not in congress/house/senate but not for themselves? Lobbyists bribe the politicians and
the people are screwed. Someone needs to wake up to this fact and vote them all out of
office next election.

[NotMcCain]

The point is that there's absolutely nothing unethical about this. As TekBoss points out with the ad right here, this is JUST THE WAY LENDERS WORK.

I'm sure Dodd has excellent credit. There is absolutely NOTHING unethical in this story. I don't even know why he's saying "I didn't know" (well, I'm sure he didn't, but it doesn't matter one way or the other).

McCain's 9 homes and those mortgages--and the interest rates on his credit cards (with $250,000 limits)--now THOSE seem like areas of ethics we should know more about.

[CaptainObvious]

Matter of ethics? Perhaps. You're problem seems to be a lack of critical thought. Chris Dodd is probably the most ethical politician in Washington. But hey, let's dump him over this total non-issue and replace him with someone who really cares about the Constitution - someone like Newt Gingrich or Tom Delay.

[sammy cole]

Outrageous!!!!!! Dodd got NO BIG DEAL...He got SCREWED.

After reading the so-called VIP deal that Senator Dodd got on his two properties, I think he got SCREWED by Countrywide. At that time...lendors all across the country were offering ZERO COST LOANS on similar 5/1 ARMS (fixed for the first 5 years) at the VERY SAME interest rate that Senator Dodd got....or LOWER. I know for sure this is true because I refi'd to these types of loans around the very same time.

What a shame the public will automoatically buy into this so-called ..looks like a good deal baloney.

If anything ...Senator Dodd DID NOT GET a good deal....far from anything VIP-like ......if anyone is interested in reviewing what Mortgage rates actually were in 2003....they should do it and stop complaining.

[jpcline004]

LOL I have to admit my first reaction was "why did he get an ARM?"

[jpcline004]

*sigh*

Chris!!!

[loax]

Lets go thru all the lobbiests mortgages that McCainbush has? Talk about unscruplous! Thes dopes are the kings of theives. Making a big story out of nothing - that waht the Repuganantkins do best.Sleeze tactics.

[LARRYB28]

but but but but mccain ,its time you guys come up with a new whine

[JackLivigni]

So twisted!! How many mortgages did Countrywide issue over the last 10 years? The only reason this is even a story is because of the crisis... but in that case everyone that has a 2nd mortgage with Countrywide that extended a loan for more than the home's value should be painted as guilty too... its just ridiculous guilt by association. There is nothing illegal in this.

I don't mind that politicians are being held to a higher standard - the avoidance of the appearance of wrongdoing, but I think we need to be careful to not wrongfully accuse honest people. We don't need witch hunts!

[America08]

This is just sickening to hear...especially with so many people making much less are STRUGGLING right now. I don't necessarily blame the people who benefited in this case because during that time everyone was refinancing and some deals were pretty sweet. I think countrywide and this guy Angelo was trying to make a name for his company and was hooking people up. He understood that in order to get paid he needed to impress the BIG BOYS in Washington and high profile people.

This is why we are so angry......The rich get richer and the poor get poorer. There is enough to go around. I don't understand why people don't want to balance out the playing field.

[jpcline004]

Yeah I am pretty disappointed with Dodd on this one, and I don't believe his excuse that he didn't know.

[CaptainObvious]

Yeah, I can tell you're awfully CONCERNED....

[NotMcCain]

For a laugh, take a look at one of the ads on this page. It's for COUNTRYWIDE and says, "No Closing Cost Refi. No Points. No Credit Report or Processing Fees."

I agree with the poster below. This is a non-issue (unless McCain is getting a bunch of -genuine- sweetheart deals from lenders for his 9 houses, which wouldn't suprise me, and which I'd be happy to start criticizing him for).

The issue is millions of Americans losing their homes. The issue for the banks is whether any unethical lending practices (not the lower rates-kind of offers mentioned here) contributed to all these foreclosures.

Forest. Trees. Hopefully the MSM will sort this out before it hits the 24/7 cable news cycle and gets spun like yesterday's "Jim Johnson might have gotten kickbacks" story was. SO IRRESPONSIBLE!!!!