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

[NotMcCain]

From the article: "Countrywide waived fractions of points on the loans, a move that likely saved Sen. Dodd money. Portfolio said the lower interest rates could have saved Sen. Dodd a combined $75,000 during the life of the 30-year loans, though this could be difficult to measure because the mortgages were reportedly adjustable-rate loans (ARM)."

Uh-huh. It's impossible to measure. Is this what this election is coming to? Trashing honest people's reputations over NOTHING???? How terrible that Dodd and Conrad have to be smeared because they apparently have a good credit history and, like millions of Americans, took out competitive mortgage loans from the nation's largest lender, Countrywide.

Here's the thing. You want to buy a house. The lender loans you money, charges points on the loan, affixes an interest rate and a time period that you will pay it back over. THESE NUMBERS ARE NOT FIXED!!!!

Lenders--usually banks, like Countrywide, the largest mortgage holder in the naiton--have many things they factor into the loans they offer borrowers. They OFTEN lower points charged for a loan, and offer competitive interest rates, especially for ARMS.

Adjustible Rate Mortgages are UNPREDICTABLE over time, because they increase based on different indexes. This is such a NON STORY that I'm speechless.

[jpcline004]

Its the dollar value, its the principle. It would be wrong for him to accept cash right? So how is this any different? I have tremendous respect for Chris Dodd and what he has done in the Senate, but this was a pretty poor decision on his part.

Face it, the Democratic party is not perfect, people make mistakes, I still believe in their principles so I vote for them. Ask yourself this, if a GOP Senator did the same thing would you be as forgiving?

[jpcline004]

Correction: its NOT the dollar value...

[vippy]

This is the problem with this country! We make excuses and the lobbyists and the corruption is going on. We, the people, need to put a stop to this. I want someone who
is nearly perfect, who watches his P's and Q's just like I did when I had to sign the yearly
ethics agreement with the federal government annually. Why is it we apply different measures with those who make a heck of a lot more money than the average Joe
working for the government that is not allowed to even take a pencil from a vendor???

[letsgetsmart]

I disagree on a number of points. First C-wide , prior to their sale, was not the nations largest mortgage holder in the US. They were the door man or conduit into fan/mae and freddy/mack. All they did was service the loans. Secondly, you can structure a mortgage loan in many ways depending on how long you plan to keep it. The article says they took arms so they wanted a short term solution. If you do not show points and fees on the loan but except a small increase in the rate, you may pay off the loan before the higher rate can cover the normal fees thus giving you a deal. Bankers do not ever give anything away and I would advise against structuring a loan this way because you do not know the true cost if nothing is revealed.

[johnnygoodwud]

smells fishy to me. believe me i bet most americans know what their mortage rate is.

[gvc]

Strawman. Dodd never claimed not to know the rate.

Most Americans shop around and take the best price they can find. Very few say to themselves, "Hmmm. That price is too low." Unless, of course, the price is in the "too good to be true" category. Lacking evidence that these rates are too good to be true, there is no story. I see no evidence to this effect. Fee waivers and sub-1% discounts are nothing out of the ordinary.

[rollingdivision]

Oh my, he's a US Senator, a lawyer, chairs a Senate financial committee and he doesn't understand a corporation he writes regulations for is buying his influence with a below market loan? UNbelievable!

[AurigaRa]

two words: KEATING FIVE

Let's remember this before we start creating new scandals

[AntonBursch]

Welcome to why Washington needs to change... not just change hands... change... this is not a scandel because nothing illegal happened, but it is a symptom of a society that favors the wealthy and powerful.

Chris Dodd should make other Democrats and Republicans take a close look at themselves. They can change along with people like Chris, and become a part of solutions in this country. Or they can stay the same and find a new line of work when we boot them out of Washington.

[bygollymissmolly]

Gee, I got a home loan with no fees, does that mean I am unethical?

Talk about much ado about nothing. Not to mention the fact that I doubt that these two Democrats are the only people in Congress who have gotten good deals on mortgages. Do they really expect us to believe that no Republicans got good deals on mortgages? That's what the MSM wants us to believe because they are all pushing the right wing agenda.

[Laffy]

I really hate replies like this.

"But, but, but.......­.........t­he Republicans do it too!!!"

If the Dems are dirty, they should be called on it and not give the lame excuse the other side is just as bad.

And, for the record, I think the Righties do this much more often.

They cried a billion tears over Bubba being a liar. Yes, when they get busted for lying, instead of being outraged, they give the same lame excuse, "But, but, but.......­.....Dems are liars too."

Really sick of it.

[pupbayer]

Don't worry. He's not the Chris Dodd Obama always knew.

[Veeve]

What a crock! I worked my tail off for 10 years to save 20% for the down payment to my mortgage. I bent over backwards to nurture a credit rating over 800 and I happened to get a rate that was well below market. I'm not going to bloody well apologize for working my ass off and neither should others!

[SenorBob]

This is just ridiculous.

I worked in the mortgage industry for many years, and no, these people probably had no idea they were getting better deals than normal people. Companies like to make a good impression on high profile people, so they go out of their way to make them happy. Very rarely does that high profile customer know they are getting preferential treatment.

[rollingdivision]

So they make a good impression on these people who don't know they're getting a better deal? Really, how does that work? If they don't know they can't be impressed by the deal.

[NotMcCain]

They're happy to have a bit lower rates. Its not like all lenders usually offer exactly the same rates. They don't.

I agree its ridiculous. Is the media stupid? They have mortgages. This is such a complete NON-story.

[onedivasinger]

Let's let it all come out. On all sides. But, by all means...le­t us check into the McCain's finances. I mean, I know the media is a part of McCain's base, but let's look and his records. Maybe Cindy provided all of the cash, but she didn't want to release her tax records at first, so lets look and see what shakes out!

[southafrica4obama]

If this election is about skeletons in closets and not about the economy, Iraq, immigration, environment, etc; then people's votes are useless and meaningless.

[samweb]

Is this the best they can do? Am I missing something? He didn't exactly rob a bank. They offered it to him.

[rollingdivision]

Unethical not illegal.

[NicholeWebb]

It's unethical to get the best deal possible on a loan? whatever

[NotMcCain]

Neither Dodd nor Conrad apparently did ANYTHING unethical.

There's nothing unethical in this story at all.

But, if this is going to be an issue for Dodd...now I want to know ALL about McCain's NINE (9) houses and the lending terms for each of them.

No favoritism for McCain? No deals for a Senator so cozy with the banking industry? Riiiiigggght.

Let's ask McCain about his and Cindi's bank loans--and credit card interest rates--too!

[StephenDedalus82]

I hardly think a U.S. Senator is a credit risk.

[rollingdivision]

California Rep. Laura Richardson

[SFkid]

So what, life's not fair. Hollywood stars get special treatment and free clothes all the time. Cops often get free meals at local holes. People like to do favors and give friends advantages at their place of employment, it happens everyday.

[dhfsfc]

This is disgusting! But at least it came out now, so that this empty suit won't sully the V.P. spot for Obama!

[gvc]

I have a VIP card from Costco. I have "preferred" insurance on my car. I have -- god forbid -- "elite" status in my frequent flyer program. I never pay rack rate at hotels or sticker price for cars. I guess I'm a crook.