Countrywide Was On Their Side

Not only did Senator Kent Conrad and Senator Chris Dodd get advantageous mortgage deals, but they knew all about it when the mortgages were originated.

Both of these Democrats benefited, and knew it despite their protestations to date to the contrary.

Despite their denials, influential Democratic Sens. Kent Conrad and Chris Dodd were told from the start they were getting VIP mortgage discounts from one of the nation's largest lenders, the official who handled their loans has told Congress in secret testimony.

Both senators have said that at the time the mortgages were being written they didn't know they were getting unique deals from Countrywide Financial Corp., the company that went on to lose billions of dollars on home loans to credit-strapped borrowers. Dodd still maintains he got no preferential treatment.

Dodd got two Countrywide mortgages in 2003, refinancing his home in Connecticut and another residence in Washington. Conrad's two Countrywide mortgages in 2004 were for a beach house in Delaware and an eight-unit apartment building in Bismarck in his home state of North Dakota.

Robert Feinberg, who worked in the Countrywide's VIP section, told congressional investigators last month that the two senators were made aware that "who you know is basically how you're coming in here."

"You don't say 'no' to the VIP," Feinberg told Republican investigators for the House Oversight and Government Reform Committee, according to a transcript obtained by The Associated Press.

The next day, Feinberg testified before the Senate Ethics Committee, an indication the panel is actively investigating two of the chamber's more powerful members:

Feinberg says that both Senators knew of the favorable treatment.

At his Feb. 2 news conference, Dodd insisted he didn't receive special treatment. The assertion was at odds with two Countrywide documents entitled "Loan Policy Analysis" that Dodd allowed reporters to review the same day.

The documents had separate columns: one showing points "actl chrgd" Dodd — zero; and a second column showing "policy" was to charge .250 points on one loan and .375 points on the other. Another heading on the documents said "reasons for override." A notation under that heading identified a Countrywide section that approved the policy change for Dodd.

Mortgage points, sometimes called loan origination fees, are upfront fees based on a percentage of the loan. Each point is equal to 1 percent of the loan. The higher the points the lower the interest rate.

How could these Senators not know what they were getting in terms of favorable treatment?

I think I have the answer.

They signed the paperwork without reading.

We already have proof of all that with every new massive piece of legislation that has been passed of late - without anyone reading for details, and members of Congress like John Conyers bellyaching about having to read for understanding being too difficult to do.

Now, none of this absolves these Senators of their obligations or their legal culpability for their actions. They signed for the mortgages, and they got the benefit of the deals.

Just don't expect Congress to hold them accountable. Accountability will only come from the voters, and I don't have much faith in them doing that either.