Senator Chris Dodd's VIP "Friends of Angelo" Loan
Senator Dodd was so deeply enmeshed in the subprime mortgage crisis he received not one but two VIP "Friends of Angelo" loans from the CEO of Countrywide Insurance, Angelo Mozilo, who is now under investigation by the Securities and Exchange Commission.
This preferential treatment enabled Dodd to save $75,000 on mortgage payments on two homes.
In early 2008, Dodd promised a full release of his VIP loan documents. At this writing, over 425 days have passed without the full transparency Senator Dodd promised his constituents (visit the Dodd Mortgage Clock for up-to-date count of the days since Dodd's broken promise).
Senator Dodd received preferential VIP loans on his homes in Washington, D.C. and East Haddam, CT.
“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.” (Portfolio, 6/12/08)
A Countrywide loan officer testified that Dodd knew he was getting preferential treatment on his VIP loans, contrary to the Senator's claims otherwise.
Robert Feinberg, who worked in the Countrywide's VIP section, told congressional investigators last month that the two senators were made aware that "who you know is basically how you're coming in here." "You don't say 'no' to the VIP," Feinberg told Republican investigators for the House Oversight and Government Reform Committee, according to a transcript obtained by The Associated Press. (Associated Press, 7/27/09)
“Countrywide Has Also Contributed A Total Of $21,000 To Dodd’s Campaigns Since 1997.” (Portfolio, 6/12/08)
Senator Dodd aggressively promoted policies that protected bailout companies Countrywide, Fannie Mae and Freddie Mac -- the key players in the subprime mortgage crisis.
Mr. Dodd is already under a cloud for receiving what a former loan officer claims was preferential treatment from Countrywide Financial on two mortgage refinancings -- in Connecticut and Washington -- in 2003. Countrywide was an aggressive lender to shaky borrowers and relied heavily on Fannie Mae and Freddie Mac to buy those mortgages in bulk. As a senior Member of the Senate Banking Committee, Mr. Dodd was one of Fannie's greatest promoters. Mr. Dodd promised last year to disclose mortgage documents to prove he got no special treatment, but so far all he's done is let a few hand-picked journalists take a quick peek before he put the papers back in storage. (The Wall Street Journal, 3/12/09)
On July 25, 2008, Dodd promised to release his Countrywide loan documents.
“Sen. Chris Dodd said he intends to release more information on his home loans from Countrywide - the giant mortgage company now owned by Bank of America - as soon as he gets his foreclosure rescue bill passed in the Senate this week and signed by President Bush.” (Hartford Courant, 7/25/08)
In February 2009, he invited select reporters to his office to read -- but not copy his loan documents.
“Connecticut Senator Chris Dodd has finally, sort of, kind of, ended 193 days of stonewalling about his sweetheart loans from former Countrywide CEO Angelo Mozilo. At least he did if you were a fast reader and were one of the few reporters he invited to his Hartford office yesterday to review -- but not copy or take -- more than 100 pages of documents related to his 2003 mortgage financings through Countrywide’s ‘Friends of Angelo’ program.” (The Wall Street Journal, 2/3/09)
