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Conrad Says Countrywide Waived Point on His Mortgage (Update1)
By John Hughes and Nadine Elsibai
June 14 (Bloomberg) --
Senator Kent Conrad said he was given preferential treatment on a mortgage from Countrywide Financial Corp. and will write a $10,500 check to charity.
``It appears Countrywide waived one point on my mortgage,'' Conrad, a North Dakota Democrat, said in a statement today in Washington.
``Although I did not ask for or know that I was receiving a discount, and even though I was offered a competitive loan from another lender, I do not want to have received preferential treatment.''
Conrad said he also received a loan from Countrywide on an eight-unit apartment building in Bismarck, North Dakota, even though the lender typically serves properties that have four units or less. He said he had decided to refinance that loan with another institution.
Conrad and Senator Christopher Dodd, who oversees the U.S. mortgage industry as chairman of the Senate Banking Committee, were among those who received loans through Countrywide's ``V.I.P.'' program, which waived points, fees and borrowing rules for prominent people, Portfolio magazine reported June 12. Dodd has denied receiving preferential treatment.
``He never expected, asked for or was aware of any special treatment,'' Conrad's spokesman, Chris Thorne, said. ``He is paying this to make absolutely clear he will not partake in any preferential treatment.''
A telephone message requesting comment left for Jumana Bauwens, a spokeswoman for Countrywide, wasn't immediately returned.
Conrad received two loans from Countrywide, one for $1 million to refinance a vacation home and another for the eight- unit building in Bismarck, according to Portfolio.
Making an Exception
Countrywide Chairman Angelo Mozilo told an employee to ``take off one point'' from the vacation-home loan, which saved Conrad $10,700, the magazine said. The apartment loan violated Countrywide's policy of not loaning money for buildings with more than four units, Portfolio said. The story said Mozilo told an employee to make an exception for Conrad.
Conrad said in a statement yesterday he received financing from Countrywide though he ``never asked for, expected or was aware of any special treatment'' and ``to leave the impression that I did is a complete lie.''
Conrad issued the new statement today after he said he reviewed e-mail traffic at Countrywide given to him by reporters and e-mails Countrywide gave him.
Conrad's 2007 financial disclosure form listed a single Countrywide loan among his liabilities. It says he took out a 30-year fixed-rate mortgage for the apartment building in 2004 with an interest rate of 5.75 percent.
Conrad reported the loan is worth $50,001 to $100,000.
Dodd's Loans
Dodd got two loans in 2003, borrowing $506,000 to refinance his Washington townhouse and $275,042 to refinance a house in East Haddam, Connecticut, Portfolio reported. 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, the magazine said, citing internal documents.
Yesterday in a telephone interview, Dodd spokesman Bryan DeAngelis 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.''
Countrywide, based in Calabasas, California, is being acquired by Charlotte, North Carolina-based Bank of America Corp., the second-biggest U.S. bank, in a deal struck in January after mounting defaults led to concern the biggest U.S. mortgage lender might face bankruptcy.
To contact the reporter on this story: John Hughes in Washington at [email protected].
By John Hughes and Nadine Elsibai
June 14 (Bloomberg) --
Senator Kent Conrad said he was given preferential treatment on a mortgage from Countrywide Financial Corp. and will write a $10,500 check to charity.
``It appears Countrywide waived one point on my mortgage,'' Conrad, a North Dakota Democrat, said in a statement today in Washington.
``Although I did not ask for or know that I was receiving a discount, and even though I was offered a competitive loan from another lender, I do not want to have received preferential treatment.''
Conrad said he also received a loan from Countrywide on an eight-unit apartment building in Bismarck, North Dakota, even though the lender typically serves properties that have four units or less. He said he had decided to refinance that loan with another institution.
Conrad and Senator Christopher Dodd, who oversees the U.S. mortgage industry as chairman of the Senate Banking Committee, were among those who received loans through Countrywide's ``V.I.P.'' program, which waived points, fees and borrowing rules for prominent people, Portfolio magazine reported June 12. Dodd has denied receiving preferential treatment.
``He never expected, asked for or was aware of any special treatment,'' Conrad's spokesman, Chris Thorne, said. ``He is paying this to make absolutely clear he will not partake in any preferential treatment.''
A telephone message requesting comment left for Jumana Bauwens, a spokeswoman for Countrywide, wasn't immediately returned.
Conrad received two loans from Countrywide, one for $1 million to refinance a vacation home and another for the eight- unit building in Bismarck, according to Portfolio.
Making an Exception
Countrywide Chairman Angelo Mozilo told an employee to ``take off one point'' from the vacation-home loan, which saved Conrad $10,700, the magazine said. The apartment loan violated Countrywide's policy of not loaning money for buildings with more than four units, Portfolio said. The story said Mozilo told an employee to make an exception for Conrad.
Conrad said in a statement yesterday he received financing from Countrywide though he ``never asked for, expected or was aware of any special treatment'' and ``to leave the impression that I did is a complete lie.''
Conrad issued the new statement today after he said he reviewed e-mail traffic at Countrywide given to him by reporters and e-mails Countrywide gave him.
Conrad's 2007 financial disclosure form listed a single Countrywide loan among his liabilities. It says he took out a 30-year fixed-rate mortgage for the apartment building in 2004 with an interest rate of 5.75 percent.
Conrad reported the loan is worth $50,001 to $100,000.
Dodd's Loans
Dodd got two loans in 2003, borrowing $506,000 to refinance his Washington townhouse and $275,042 to refinance a house in East Haddam, Connecticut, Portfolio reported. 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, the magazine said, citing internal documents.
Yesterday in a telephone interview, Dodd spokesman Bryan DeAngelis 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.''
Countrywide, based in Calabasas, California, is being acquired by Charlotte, North Carolina-based Bank of America Corp., the second-biggest U.S. bank, in a deal struck in January after mounting defaults led to concern the biggest U.S. mortgage lender might face bankruptcy.
To contact the reporter on this story: John Hughes in Washington at [email protected].
