Loading ...
The Secret Scandal
- Filed under: Congress, Scandalous
- Date: Jun 16,2008
Story: Two influential US senators got "VIP" loans from a leading subprime mortgage lender that saved them tens of thousands of dollars, it was reported last night. The Democratic pols, Chris Dodd of Connecticut and Kent Conrad of North Dakota, both received the highly favorable loans under the designation "Friend of Angelo," a reference to embattled Countrywide head Angelo Mozilo, Condé Nast Portfolio reported.
Obviously Dodd (Chairman of the Banking Committee) and Conrad (Chairman of the Budget Committee) were unaware they got special treatment of any kind. Who actually believes that line? You did not hear much about this because the two senators involved are Democrats. Dodd saved about $70,000 with his two loans; Conrad saved about $10,700 on his. That seems like a conflict of interest from the most ethical Congress ever! This will never turn into anything big because of their party affiliation and the media. Also, no one except political nerds like me know who Kent Conrad is. These two wealthy Democrats got cheaper interest rates than you or I could have, but they "didn't seek them." Very noble, but they had no problem taking them even though the conflict of interest could not be more clear. Conrad and Dodd saw no wrong doing with getting financial breaks due to their positions, or at least they didn't until common people found out. Additionally, Conrad, who fancies himself as a budget wizard, got his loan for his Delaware vacation home that he may have some disclosure problems with (oh my god oh my god the article said Conrad's wife is a lobbyist, does Barack know this?). If Dodd ever got above 2% in any poll when he ran for president, this could have sunk him. No worries there as he was stuck down in Kucinich territory.
The lesson learned: If you ever want to become to refinance your house at a low, special rate or even become a slumlord, just work your way up to become chairman of a powerful United States Senate committee. And make sure you are a Democrat. I do not advise any Senate Republicans to do this. So Richard Shelby or Judd Gregg, if you are planning to get a home loan, do not take favors. You will not get a free media pass. They will use it to try and sink you.
If the very unfortunate happens (it won't) and Conrad and Dodd have to resign their seats, they could always take Jim Johnson's slot on the Obama VP vetting committee (this is actually how this all came to light). And if they actually did have to leave the Senate, Republican Governors Jodi Rell (Connecticut) and John Hoeven (North Dakota) could appoint their replacements and Republicans could enjoy a few months in the majority before they lose more seats in 2008 and work their way down to around 42-44 seats after holding 55 of the 100 seats on January 3, 2005. But that is another story in of itself which I will talk about this week, updating this previous Senate 2008 post.
16 Responses for "The Secret Scandal"
Ben, Thank you for running with this. At least you have pointed out that the other side has some "problems" as well.
I don't have time to care or think about Dodd or Conrad, but I do know the reporting has said Jim Johnson did not get special terms. His loan was considered within the range of a proper loan for a person with his credit. So Johnson did nothing wrong.
I guess you had time to research Johnson, then.
Chuck,
Don't trust the reporting.
Ben,
Friday I spent half an hour on the phone with Countrywide inquiring whether I could get the special bribery rate on my loan. I have perfect credit and never miss a payment. They did some checking and told me to get back to them when I get to be chairman of the senate banking committee. Actually, the phone center supervisor just stuttered and stammered while trying to explain everyone pays the same rate. She had no answer for if that is the case why did Dodd and Conrad among others get the special bribery rate.
This is not the Chris Dodd I knew
- Barack Obama
Dem or Rep the game is the same. Perks, favors, and sweatheart deals have become the norm. The only difference is how it is perceieved. If it is a Rep. it is further proof that the Rep. is a corrupt soul in the pocket of the private sector. If it is a Dem. it is further proof that corrupt big busineess is trying to influence the very leaders that are trying to monitor, control and even punish the entities that abuse the public.
I would love to see what standards are used for people with these 2 senators credit range.
From Ben's linked article…
"For V.I.P.'s, Countrywide often waived at least half a point and eliminated fees amounting to hundreds of dollars for underwriting, processing and document preparation. If interest rates fell while a V.I.P. loan was pending, Countrywide provided a free “float-down” to the lower rate, eschewing its usual charge of half a point. Some V.I.P.'s who bought or refinanced investment properties were often given the lower interest rate associated with primary residences."
"hundreds of dollars"….my goodness, quite a perk.
It's not unusual at all for lenders to "float down" before closing a loan. At least in my experience it isn't.
Is your observation here Ben that Conrad and Dodd did something illegal? Or is it the appearance of conflict of interest? And if it is the appearance of conflict of interest…what have Conrad and Dodd done to help Countrywide? If Dodd and Conrad have not done anything specifically to help bail-out Countrywide….then this story is just so much hot air.
How much did the lowered interest rates amount to, Reverend?
Larry,
In Dodd's case it amounted to around 70k.
Rev,
Dodd is co-sponsoring bailout legislation which will in turn take millions of in danger loans off of Countrywide's books. Dodd should be ashamed and considering resigning. However, Dems are incapable of feeling shame and he is going no where.
They got perks the average person could not get from companies they regulate. That to me looks like a conflict.
CULTURE OF CORRUPTION
Agree with Julie; I have very good credit but bet I wouldn't qualify for the same rates as the Senators. Are the foxes guarding the hen house?
One more thing, the apple doesn't fall far from the tree. Dodd's father, Sen. Tom Dodd was censured by the Senate for taking $75,000 from his campaign funds and using them for personal expenses.
Rev, dodd and conrad should not be getting special treatment from companies they regulate.
Larry is right - it isnt a few hundred dollars - over the long term it is thousands. I would imagine if this was a Republican you might not feel the same way.
Good point LargeBill, I forgot about that.
And in a somewhat related story: William Jefferson (D-LA) is running for reelection, again.
Leave a comment