Kent Conrad Benefits From Unethical “Sweetheart” Loan Deal From Subprime Lender

• June 13, 2008

Kent Conrad, among other politicians (including disgraced former Bush administration HUD secretary Alphonso Jackson), received special treatment from lender Countrywide because of their friendship with embattled CEO Angelo Mozilo:

Two influential US senators got “VIP” loans from a subprime mortgage lender saving them tens of thousands of dollars. Democrats, Chris Dodd, Connecticut and Kent Conrad of NDakota, received highly favorable loans under “Friend of Angelo,” a reference to embattled Countrywide head Angelo Mozilo, Condé Nast Portfolio reported. Dodd chairs the Senate Banking Committee; Conrad chairs the Budget Committee and is a member of the Finance Committee. Others who received “FOA” loans include Alphonso Jackson, HUD Secy under Pres Bush ( resigned in April), and Donna Shalala, Clinton’s HHS secretary. The report came one day after Democratic heavyweight Jim Johnson stepped down as chief of Barack Obama’s VP search committee after revelations he’d gotten Countrywide loans at very favorable rates.
FOAs paid lower fees, and if rates fell, VIPs got a free “float-down” while regular customers paid a surcharge. Dodd reportedly received two loans in 2003 – $506,000 to refinance his Washington town house, and $275,042 to refinance a Connecticut home….saving him about $70,000. The company also contributed $21,000 to Dodd’s campaigns since 1997…….Conrad borrowed $1 million to refinance his vacation home, saving at least $10,000.

Mozilo is also on record with a $1,000 contribution to Kent Conrad in 1999.
Looking at the laundry list of political contributions made by Mozilo (available from the FEC here) it’s clear that the man was a political operative with no real political ideology. He contributed to both the Bush campaigns and the John Kerry campaign. He contributed to the Republican Senate Campaign Committee and the Democrat National Committee. He’s contributed to Diane Feinstein and Rudy Guiliani. So instead of a man trying to support any particular political movement, it’s clear that Angelo Mozilo was instead using political contributions (and unethical lending transactions) to buy political influence.
And North Dakota Senator Kent Conrad is one of the politicians’ whose influence he bought.

Tags: Domestic Issues, North Dakota News, Politics

http://Array Wing Chun Geologist

“These financial transactioans do not represent the Kent Conrad I have known all these…er…um…hold on….. Kent Conrad is just a guy from North Dakota. Our paths possibly crossed in Washington.”

-B. Obama
http://www.battlefords.com/ Art.Downs

There is also quite a disparity between Dodd and Conrad.

What did Dodd get that saved him so much more?
http://www.brisbanerealestateagent.com/greek-island-cruises.html Alaska Cruises

Indeed, this isn’t the right kind of behavior in this case. I think that he should have adopted another attitude, more suitable to the problem.
http://www.jp-financial.co.uk/remortgage.php remortgage advice

I wish i could waive the fees evertime we transacteda mortgage. Looks like Kent Conrad gota back hander.
Tuna

If the distinguished gentlemen qualified for the VIP treatment, there is probably nothing to this story–which is too bad.
http://ndgoon.blogspot.com/ goon

Rob this needs to be hammered and hammered. They are doing what they accused the GOP of doing. The Media in ND needs to be on this…
WhatTha?

I see that this is now breaking news on the Forum, GF Herald, Bismarck Trib…oh, wait…this story is about one of our ruling “troika” in DC…sorry…it’ll never see the light of day in the North Dakota press.

Well, maybe. The Forum probably will give the New York Post a “Leafy Spurge” for daring to criticize our glorious leader.
http://ndgoon.blogspot.com/ goon

Rob is there anyway to get the Newspapers on this, have you gotten any comment from the Fargo Forum or the Herald?
tom

He’ll be like his credit union check floating,Abramoff loving comrade Dorgan. He’ll pass it off as no big deal. Would the vacation home be the dumpy apartment in Bismarck? Just wondering.
Tuna

On second thought there is something here–I would bet my heavily mortgaged ranch that these two have railed against preferential treatment for mortgage applicants–you know, giving qualified borrowers a better deal than deadbeats. In not insisting on receiving the same treatment as their sub-prime brethren, they can be branded with the big H.
Wing Chun Geologist

Art:

I have a friend who served in a state assembly. We have amutual friend who likes to grab the check. My friend got investigated because of a lunch he had with this buddy. It was a big scandal that was blown out of proportion in the local papers.

If some carne asada and Coronas can trigger a scandal, I think sweatheart loan deals would certainly warrant a raising of eyebrows.
http://www.valleydeals.com/cgi-bin/board2/YaBB.pl Kevin

We have been told in the past “The nature of the evidence is irrelevant; it’s the seriousness of the charge that matters.”
http://www.battlefords.com/ Art.Downs

So $10k is 1% of a million. Did Countrywide waive a 1% refinancing fee? Is that where he saved the money?
http://www.battlefords.com/ Art.Downs

Where is the evidence for this story? How was it such a “sweetheart” deal?

$10K over the life of loan is not a sweethear deal at all.
http://www.texasrefinanceloan.net/ texas_refinance_loan

Just came and read, this is wow! I was seek from many blogs, but here is the best, I love it.
http://www.jp-financial.co.uk/remortgage.php remortgage advice

I wish i could waive the fees evertime we transacteda mortgage. Looks like Kent Conrad gota back hander.
http://ndgoon.blogspot.com/ goon

Conrad said he never met Mozilo, and “I never asked for, expected or was aware of any special treatment.” Dodd had no immediate comment, but his wife told Portfolio two other lenders they’d checked with offered comparable interest rates.

I like how they spin this but he would be all over this if this was one of the GOP leadership guys/gals. HYPOCRITE
http://sayanythingblog.com robport

He saved $10,000 on refinancing, not over the course of the loan.

He also got favorable treatment ordinary Americans couldn’t get from the CEO of a company Conrad’s had a hand in regulating (per his membership on committees).

Try to minimize this if you want, Art, but this is a big problem for Conrad. Though I’m sure the ND media will white wash it, and then the Fargo Forum well exonerate him with an Olympian-toned bit of contorted reasoning that will leave all our heads spinning.
http://sayanythingblog.com robport

It’s not just the favorable rates they got. There’s also this:

FOAs paid lower fees, and if rates fell, VIPs got a free “float-down” while regular customers paid a surcharge.

Lower fees. Waived surcharges.

Must be nice to be a Senator.
http://sayanythingblog.com robport

Conrad’s $1.07 million vacation home is in Delaware, one block from the beach.

And you know what? He didn’t disclose it on his Senate records. He bought it in 2004, and it’s never appeared on one of his disclosure reports.

Why was he hiding it?

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Kent Conrad Benefits From Unethical “Sweetheart” Loan Deal From Subprime Lender

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