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Senators Accused Of Taking Mortgage Deals

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The Associated Press

Published: June 14, 2008

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 chief executive officer 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., 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.

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.

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."

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