Senators Deny Knowing Of Home Loan Favoritism

[RamboLiberal]

Source: Washington Post

Senate banking committee Chairman Christopher J. Dodd said yesterday that he knew he was part of a "VIP" mortgage program offered by Countrywide Financial, but he said he was not aware that the privilege included waiving fees that regular customers must pay to obtain lower interest rates.

Dodd (D-Conn.) -- who reportedly received the special treatment as part of the company's "Friends of Angelo" program, named for chief executive officer Angelo Mozilo -- said loan officers told him and his wife in 2003 that they would be part of an exclusive program. But the couple assumed the plan gave them unspecified courtesies and did not ask whether it included a waiver of the fees, known as points, or a reduced interest rate on their loans, the senator said.

"I don't know that we did anything wrong. I negotiated a mortgage at a prevailing rate, a competitive rate. . . . I did what I was supposed to do," Dodd told reporters at a news conference called to discuss the matter and legislation to address the nation's housing crisis.

The Senate ethics committee has begun a preliminary investigation of the special treatment afforded Dodd and Sen. Kent Conrad (D-N.D.), who received a one-point reduction on his Countrywide mortgage.



Read more: http://www.washingtonpost.com/wp-dyn/content/article/2008/06/17/AR2008061702579.html

---

Sorry senators, but this stinks and Dems need to be above board.

[Skittles]

1. disgusting

:thumbsdown:

[Purveyor]

2. "Sorry senators, but this stinks and Dems need to be above board."

Indeed!

[RamboLiberal]

5. At least Conrad tried to make some restitution

But Dodd is stonewalling. From OP article:

Yesterday, Conrad paid off the final $32,000 on the multi-unit mortgage and contributed $10,700 to Habitat for Humanity to compensate for the benefits from the beach house loan.

Dodd said he has no plans to make charitable donations or refinance his mortgage with Countrywide. "I don't feel at this point I have any obligation," he said, adding that he spoke only to "loan officers" and that it would have been inappropriate to talk to Mozilo directly about his mortgage.

[Psephos]

9. You're cutting him slack for this phony restitution?

I might cut him slack if he'd come clean on his own. But he didn't.

Don't be an enabler for these crooks.

[seriousstan]

3. Senate banking committee Chairman didn't know what part of an exclusive program meant.

RIGHT!! If he wants me to believe that then I must believe he is unqualified for him committee appointment.

[whistle]

4. Bullshit!

[nycdemocratico]

6. I give Dodd the benefit of the doubt

Some times we humans do things without being aware of all the details. Dodd might be telling the truth.

[Psephos]

10. He figures that there are a lot of chumps like you willing to do the same

Even if he were telling the truth, the craven stupidity that implies disqualifies him from being a washroom attendant in the Senate office building.

But he's not telling the truth, because he's not stupid.



edit: typo

[Trillo]

27. If telling the truth is stupid,

then why are kids punished in schools for lying? To separate the bad from the best liars?

[Psephos]

28. Telling the truth is admirable

It's also rarer than hoped among Senators.

But you missed the point. If Biden actually doesn't connect receiving special financial deals with attempts to influence him, then he's a tool just begging to be used by the corrupt. Someone that naive has no place in the Senate, where all day every day special interests try to buy special treatment.

But he doesn't believe it, which make this all moot. Biden's a seasoned, wily pol who understands the political game as well as anyone there.

[Trillo]

30. It's possible.

Myself, I'm not convinced Dodd knew it was a "special deal" that wasn't being given to many others outside of government. We don't really have enough information to come to that conclusion. Maybe Dodd knew, maybe he didn't. Maybe he's lying, maybe he's being truthful.

What I'm thinking of particularly is the number of "special deals" offers I get in the mail, or thankfully now somewhat rarely, on the phone. I presume they are a mass mailing that many others get at the same time, and that to some degree, I presume it's a numbers game for marketers, perhaps for a 1000 sent out, 1 or a few sign up. But if one was sent out that that was not sent to any others, but otherwise looked just like them, how would anyone besides the sender know?

One possible purpose of this scenario would be to have some leverage over the target should they get a bit, say, unfriendly toward the industry's mass market scams. Let's say the Senator starts talking about regulating this industry, whoops, a call gets made to an associate, who calls another, who whispers something to CREW, one of the front running anti-corruption organizations, and then the Senator has, at a minimum, an investigation of him or herself, instead of time to write regulations that might impinge on the industries' underhanded methods. This could all be set up well in advance, a 'ace up the criminals sleves' to pull, just as "insurance" should the senator not "play ball".

If Dodd is being truthful, then wouldn't such a scenario light a fire of sorts in his belly? I've heard that Senators don't take kindly to being told what to do, though with BushCompany, it's kind of hard to see with all the Executive Privilege that's been invoked, subpoenas ignored, etc.

Perhaps as a Senator or Representative it's easier to just collect all the campaign cash and allow the criminals to additionally compromise with "special deals" "Too good to be true", and put on an ineffective show of objection, without ever stopping any of the corruption. Sure, they'll get called spineless by some, but who really cares about that. They got all that cash and have nice places to live, eat, and have plenty of "friends" in high places. Friends like Angelo.

[mcg]

7. When I worked at Fannie Mae I saw a list of names,

political names, like Senator Domenici. The guy showing it to me was very reluctant about it. The sense I got about the list is that it had to do with mortgage rates and Fannie Mae's influence on rates.

[PSPS]

8. "Friends of Angelo"

Dodd (D-Conn.) -- who reportedly received the special treatment as part of the company's "Friends of Angelo" program, named for chief executive officer Angelo Mozilo ...

Sorry, "Senator." Any "friend of Angelo" is no friend to the country. You've been exposed for the crooked and bribed slime that you are.

[InkAddict]

11. Sorry Dodd, when something's too good to be true, it usually is.

By accepting this "friendship" you helped Countrywide perpetrate their insatiable greed on me personally, and I am offended and will not accept your lame excuses and befuddlement at just what special priviledges you enjoyed at my expense. Now go do the right thing and rid yourself of this "special" relationship and any relationship with these cheats ASAP and then help us sweep the nation of treasonous *Co and his cronies.

[justjones]

12. Isn't any VIP program meant to give special favors that regular customers....

do not get? I do not believe he didn't know he was getting a special rate and points off.

[bean fidhleir]

13. Just another case of the elites thinking they DESERVE special treatment

If he wasn't suspicious of why some guy might want to give a federal senator special treatment, that's *why* he wasn't.

A normal person, like one of us, gets so little good treatment of any kind that our BS detectors would be clanging like a four-alarm fire bell. But not the guys running the country. To them, getting special treatment is just a natural, deserved perq.

[GTurck]

14. Only 2?..

and both Democrats. The whole thing stinks. Dodd and Conrad should be chastised and are being but there is more to this mess than that. I see and have seen too much to believe that we now are seeing Democratic shenanigans only. Don't trust the simple. All those expensive Georgetown townhouses sold every 6 years are never negotiated as ordinary mortgages are and probably the whole Congress has gotten special treatment and special rates. In an election year it is always suspicious when only one side is found to have feet of clay and increases the voters cynicism that nothing will every change.
We "ordinary" Americans have got to stop being surprised that the elite get what the rest of us don't. It has always been so;; from getting better food, clothing, and housing to airline tickets/service and passes to just about anything they want to attend. What we can do is say that if they get the treatment and then give that back they are in violation of ethics and morality and the law and will be held accountable. Those that expect something for the treatment will equally be held accountable. Imagine the elite all getting a government paid vacation at Leavenworth!:+

[redqueen]

23. Spot on... these guys deserve to get the stick... but so does Countrywide.

We need a list of ALL the VIPs.

[karynnj]

25. Not all Senators live in Georgetown mansions

and of those who do, there are likely many who did not get special rates. It is noteworthy that they were both on the baking committee which oversees .... Banking.

[soothsayer]

15. Well, who wouldn't think that these folks would get special treatment?

The rich always get perks the rest of us don't. Why do we act surprised?

[mcollier]

16. Like this is so much more

Important than being decieved into a war with Iraq!

[RUMMYisFROSTED]

19. Walking and chewing gum.

[tidy_bowl]

21. True and this is how they get rich. nt

[duhneece]

17. The dollar figures are so small compared to Halliburton's fraud

That this seems to be pointing fingers at the wrong guys.
Yes, Dems need to be above board, but a POSSIBLE $75,000 savings over the life of the loan (what I saw on CNN yesterday) just doesn't seem important in the whole scheme of things.

[tidy_bowl]

22. Kinda like being a little bit pregnant...nt

[redqueen]

24. What?

[AP]

31. Not if this is the reason Congress wasn't regulating mortgage industry.

If Dodd was going easy on mortgage lender regulations because it would have hurt the people who were helping him, then the costs could be much greater than Enron.

The mortgage scam might bring down the global economy.

[nels25]

18. Can some one tell me why I should believe this tripe??

If I knew that DeLay was garbage when he was trying to avoid trouble, why should I believe Dood??

Because he is a Democrat and that therefore makes it acceptable??

You Wish!!

One of the things that outrages me about politics is the way one party will look the other way when one of their own get caught doing obvious wrong, that they would scream bloody murder about if the shoe was on the other foot.

Spare me!!

If it walks, looks, and quacks like a duck. THEN GUESS WHAT IT IS A DUCK!!

This just does not pass the P.U. test.
:puke:

[rumpel]

20. Last year I was shocked when Sen. Dodd praised

the industry:

A longtime advocate for homeownership, Chairman Dodd has focused on predatory lending and the subprime market turmoil for several months, having convened two hearings since becoming Chairman in January.

“These principles represent a critical step in preserving homeownership and economic opportunity. I applaud the tremendous leadership demonstrated by the Mortgage Bankers Association, Citigroup, JPMorgan Chase, Litton Loan Servicing, HSBC, Bear Stearns, Freddie Mac, Fannie Mae, the Self-Help Credit Union, the Leadership Conference on Civil Rights, AARP, and ACORN to take active and effective measures to preserve homeownership for families at risk of losing their homes,” said Dodd.

http://dodd.senate.gov/index.php?q=node/3863/print

Litton Loan Servicing is one of the worst companies:

http://www.ripoffreport.com/searchresults.asp?q5=Litton+Loan&searchtype=0&q1=ALL&q3=&q2=&q7=&q4=&q6=&start=0
http://www.lieffcabraser.com/loan-servicing.htm

[Trillo]

26. It does stink, it smells fishy!

Dodd Calls for Scrutiny of Bear Stearns Bailout

All Things Considered, March 26, 2008 · Sen. Christopher Dodd (D-CT) calls for hearings on the Federal Reserve's role in saving investment firm Bear Stearns.

Dodd, who is chairman of the Senate Banking Committee, says new regulations for financial institutions may be needed — especially since taxpayer dollars are part of the deal.

...

Dodd says he is "generally supportive" of the Fed's decision to step in, but he also believes it is an "unprecedented action" that risks a large magnitude of taxpayers' money without guarantee of protection.

He cites as an example the lack of regulations against deceptive and fraudulent practices in the home-mortgage industry in the past.

"Nothing was ever done about it: nothing, zero, not even proposed regulations. And frankly, I'm convinced, at this juncture, that that, among other things, was the reason why we got into this mess," Dodd tells Robert Siegel.

read more @ http://www.npr.org/templates/story/story.php?storyId=89122362

So, he's stating that something's maybe wrong with the financial system: the Treasury, the Federal Reserve, the home mortgage companies, etc., and lo and behold, "Friends of Angelo" end up being not so friendly after all? It sounds like even Dodd was in the dark of the details of the Federal Reserve's "deal" with JPMorgan.

The timeline of these two items stinks. Maybe Dodd smoked a big one out of its hole?

[napi21]

29. I don't think they DID know! I wowrked in accounting depts all my life.

(40+ years) It's ALWAYS been common practice for people/companies that have money to get favorable rates! The old story of "Its always easy to get cheap money when you don't NEED IT!" is very true. It's also understandable. The lower the risk for the lender, the more goodies they offer you.

From what I've heard about these current deals, the $ amounts were relatively insignificant. In Dodd's case, they are talking about possibly $10,000. in the corruption world, that's barely beyond petty cash!

[AP]

32. I think it shows poor judgment for a congressperson to accept special benefits from

a company he or she should be regulating.