There’s a bit of chatter today on several of the more investigative web sites around looking a little deeper in Senator Chris Dodd’s dealing with mortgage giant Countrywide, themselves the target of a great deal of scrutiny of late. 

Conde Nast’s Portfolio has a pretty detailed look at the story; here’s what appears to be the money quote from the article concerning Dodd –

Senator Dodd received two loans in 2003 through Countrywide’s V.I.P. program. He borrowed $506,000 to refinance his Washington townhouse, and $275,042 to refinance a home in East Haddam, Connecticut. Countrywide waived three-eighths of a point, or about $2,000, on the first loan, and one-fourth of a point, about $700, on the second, according to internal documents. Both loans were for 30 years, with the first five years at a fixed rate.

The interest rate on the loans, originally pegged at 4.875%, was reduced to 4.25% on the Washington home and 4.5% on the Connecticut property by the time the loans were funded. The lower rates save the senator about $58,000 on his Washington residence over the life of the loan, and $17,000 on the Connecticut home. The former employee says the float-downs were free. Senator Dodd’s wife, Jackie Clegg, said in a brief interview that two other lenders they checked with offered comparable interest rates. The senator’s office said Thursday afternoon that it is preparing a response.

Though we think that the Dodd-Shelby housing bailout is a bust, and should be vetoed when it is sent up for signature, to be fair there is an angle to consider here in Dodd’s defense.  Lots of mortgage, banking, and other financial industry providers offer differential rates and “deals” to wealthy or high profile clients, and Dodd potentially could have received benefits offered many of the FOA’s (friends of Angelo – the Countrywide CEO). 

Dodd, Kent Conrad of North Dakota and others are in hot water given the obvious serious potential conflict of interest here, and failure to articulate full disclosure has already led to discussion of an ethics violation that could have serious downstream ramifications.   Even more interesting will be the reaction of thousands of homeowners struggling to pay their mortgages if this story gains some traction in the media. 

Checking Dodd’s senate website late Friday afternoon revealed no comment regarding the matter posted as of yet. 

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