Say Anything Blog

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.