By: Favian ClaiWhile Americans are having difficulty paying their mortgages every day due to the faltering economy and the high unemployment rate, some Senators are getting special deals behind America's back. The
Senate ethics committee is reviewing evidence against Senator Christopher J. Dodd (D-Conn.) and Kent Conrad (D - N.D.) regarding their knowledge about special "VIP" treatment given to them by Countrywide.
Robert Feinberg, testified under oath before the Ethics committee that both senators were aware that they were getting special treatment by Countrywide to give below-market-rate mortgages to the powerful and famous.
Feinberg worked as a loan officer at Countrywide. In his testimony on June 23rd, he stated that Angelo Mozilo, the Chief Executive of Countrywide, created the VIP program and that Mozilo would make a big deal about both senators being in the VIP program.
Questioning Feinberg was Chairman Barbara Boxer (D - California), ranking Republican Johnny Isakson (Ga) and Senator Jim Risch (R-Idaho). According to the testimonies, both senators received large perks that saved them thousands of dollars, if not more.
Chris Dodd allegedly had both his Washington, DC and Connecticut home listed as his primary residence, which is normally not allowed. Senator Kent Conrad supposedly also received a big favor when Countrywide refinanced an 8 unit commercial building he owned as a
residential loan. Both senators received loans that had lower interest rates than market and had points waived.
Countrywide is no stranger to these kinds of hearings. Battered by the swift fall in the subprime mortgage market, Countrywide was taken over by
Bank of America in early 2008. Countrywide's former Chief Executive Mozilo faces civil fraud and insider-trading charges in connection with Countrywide's lending practices.
Both Senators continue to decline that they were aware or sought the special VIP Program treatment offered by Countrywide. While both senators deny having any knowledge of receiving the "VIP" benefits for all four of their mortgages, Feinberg stated otherwise.
After all, didn't the Senators read their mortgage terms before they signed them? Couldn't they see that they were getting big breaks and receiving mortgages they were not entitled to receive? If it is true that both these Senators profess innocence in this matter, do they have the intelligence to be United States Senators? This makes one wonder considering that Chris Dodd is the chairman of the Senate Banking Committee.
