WASHINGTON — Senate Banking Committee chairman Christopher 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 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 website — 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., one of four Senate Democrats who pursued his party’s 2008 presidential nomination, 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 Sen. Barack Obama, the presumptive Democratic nominee, to ax Johnson from his vice-presidential vetting team.
Portfolio cited internal Countrywide documents showing that the company made two loans at special rates to Dodd in 2003. It took three-eighths of a point off a $506,000 loan to refinance a Washington townhouse — saving Dodd about $2,000 a year in interest payments — and knocked a quarter-point off a $275,042 loan to refinance a home in Connecticut, a savings of about $700 a year.
Mozilo reportedly instructed an employee to give Conrad a 1 percent discount off his interest rate on a $1.07 million loan in 2004 to refinance his vacation home, a savings of about $10,000 a year.
“If they did me a favor, they did it without my knowledge and without my requesting it,” Conrad said. “I have not done one single thing wrong here.”
