Say Anything Blog

The Senate Ethics Committee is investigating, and now 17 other Senators aren’t responding to inquiries about their personal mortgages.

Wonder if Conrad’s colleague Senator Dorgan is among them?

Democratic Sens. Chris Dodd of Connecticut and Kent Conrad of North Dakota still rank high in the loser category. They had to admit that they received special treatment on mortgage loans from Countrywide. They insist they had no idea they got a break—everybody else in the country is saying, “gimme a break.” Conrad is chairman of the Senate Budget Committee and Dodd is chairman of the Senate Banking Committee. They are two very powerful senators whose committees have jurisdiction over Countrywide’s business. It turns out they were also “Friends of Angelo,” as revealed by Conde Nast Portfolio Magazine. That’s Angelo as in Angelo Mozilo, chairman and CEO of Countrywide.

It’s a pretty seedy story: When Conrad was looking to buy his Delaware beach house in 2002, he called his good friend, former Fannie Mae CEO James Johnson, Conde Nast reported. Mozilo happened to be in Johnson’s office and Johnson handed the phone to him. Countrywide financed the beach house and, later, an investment property of Conrad’s. Mozilo instructed a subordinate via email to “(T)ake off 1 point” and in another email wrote, “Make an exception due to the fact that the borrower is a senator.” Dodd never spoke directly to Mozilo, but Dodd was aware that his two Countrywide mortgages were in a “VIP section.” Dodd says he assumed that was just some kind of “courtesy.” The Senate Ethics Committee is investigating.

Incidentally, Johnson is the same guy who was briefly tasked by Obama to vet potential running mates. Johnson stepped aside when it was revealed that he had received preferential loans from Countrywide.

As of this writing, 17 senators still haven’t responded to Politico.com’s request for information on their mortgages.

It’s funny that this article describes the second property Conrad financed through a Mozilo-issued “VIP loan” as an “investment property.” That second property just happens to be the apartment complex Conrad owns in Bismarck.  The complex which holds the apartment he claims is his home to fulfill state citizenship requirements.

In the mortgage industry, an “investment property” is an official term used to describe property which is owned by a person but isn’t where that person lives.  When Conrad got this loan from Countrywide did the lender treat the property as an investment property?  And if so, wouldn’t that raise questions about Conrad’s citizenship?  And thus his qualification to serve as North Dakota’s Senator?