evince
Truthmatters
Countrywide Financial loan controversy[edit]
Further information: Countrywide financial political loan scandal
In his role as chairman of the Senate Banking Committee Dodd proposed a program in June 2008 that would assist troubled sub-prime mortgage lenders such as Countrywide Financial in the wake of the United States housing bubble's collapse.[35] Condé Nast Portfolio reported allegations that in 2003 Dodd had refinanced the mortgages on his homes in Washington, D.C. and Connecticut through Countrywide Financial and had received favorable terms due to being placed in the "Friends of Angelo" VIP program, so named for Countrywide CEO Angelo Mozilo. Dodd received mortgages from Countrywide at allegedly below-market rates on his Washington, D.C. and Connecticut homes.[35] Dodd had not disclosed the below-market mortgages in any of six financial disclosure statements he filed with the Senate or Office of Government Ethics since obtaining the mortgages in 2003.[36]
Dodd's press secretary said "The Dodds received a competitive rate on their loans," and that they "did not seek or anticipate any special treatment, and they were not aware of any," then declined further comment.[37] The Hartford Courant reported Dodd had taken "a major credibility hit" from the scandal.[38] At the same time, the Chairman of the Senate Budget Committee Kent Conrad and the head of Fannie Mae Jim Johnson received mortgages on favorable terms due to their association with Countrywide CEO Angelo Mozilo.[39] The Wall Street Journal, The Washington Post, and two Connecticut papers have demanded further disclosure from Dodd regarding the Mozilo loans.[40][41][42][43]
On June 17, 2008, Dodd met twice with reporters and gave accounts of his mortgages with Countrywide. He admitted to reporters in Washington, D.C. that he knew as of 2003 that he was in a VIP program, but claimed it was due to being a longtime Countrywide customer, not due to his political position. He omitted this detail in a press availability to Connecticut media.[44]
On July 30, 2009, Dodd responded to news reports about his mortgages by releasing information from The Wall Street Journal showing that both mortgages he received were in line with those being offered to general public in fall 2003 in terms of points and interest rate.[45]
On August 7, 2009, a Senate ethics panel issued its decision on the controversy. The Select Committee on Ethics said it found "no credible evidence" that Dodd knowingly sought out a special loan or treatment because of his position, but the panel also said in an open letter to Dodd that the lawmaker should have questioned why he was being put in the "Friends of Angelo" VIP program at Countrywide: "Once you became aware that your loans were in fact being handled through a program with the name 'V.I.P.,' that should have raised red flags for you."[46]
Further information: Countrywide financial political loan scandal
In his role as chairman of the Senate Banking Committee Dodd proposed a program in June 2008 that would assist troubled sub-prime mortgage lenders such as Countrywide Financial in the wake of the United States housing bubble's collapse.[35] Condé Nast Portfolio reported allegations that in 2003 Dodd had refinanced the mortgages on his homes in Washington, D.C. and Connecticut through Countrywide Financial and had received favorable terms due to being placed in the "Friends of Angelo" VIP program, so named for Countrywide CEO Angelo Mozilo. Dodd received mortgages from Countrywide at allegedly below-market rates on his Washington, D.C. and Connecticut homes.[35] Dodd had not disclosed the below-market mortgages in any of six financial disclosure statements he filed with the Senate or Office of Government Ethics since obtaining the mortgages in 2003.[36]
Dodd's press secretary said "The Dodds received a competitive rate on their loans," and that they "did not seek or anticipate any special treatment, and they were not aware of any," then declined further comment.[37] The Hartford Courant reported Dodd had taken "a major credibility hit" from the scandal.[38] At the same time, the Chairman of the Senate Budget Committee Kent Conrad and the head of Fannie Mae Jim Johnson received mortgages on favorable terms due to their association with Countrywide CEO Angelo Mozilo.[39] The Wall Street Journal, The Washington Post, and two Connecticut papers have demanded further disclosure from Dodd regarding the Mozilo loans.[40][41][42][43]
On June 17, 2008, Dodd met twice with reporters and gave accounts of his mortgages with Countrywide. He admitted to reporters in Washington, D.C. that he knew as of 2003 that he was in a VIP program, but claimed it was due to being a longtime Countrywide customer, not due to his political position. He omitted this detail in a press availability to Connecticut media.[44]
On July 30, 2009, Dodd responded to news reports about his mortgages by releasing information from The Wall Street Journal showing that both mortgages he received were in line with those being offered to general public in fall 2003 in terms of points and interest rate.[45]
On August 7, 2009, a Senate ethics panel issued its decision on the controversy. The Select Committee on Ethics said it found "no credible evidence" that Dodd knowingly sought out a special loan or treatment because of his position, but the panel also said in an open letter to Dodd that the lawmaker should have questioned why he was being put in the "Friends of Angelo" VIP program at Countrywide: "Once you became aware that your loans were in fact being handled through a program with the name 'V.I.P.,' that should have raised red flags for you."[46]
