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July 5th, 2012
07:09 PM ET

Tonight on AC360: Countrywide “Sweetheart Deals” influenced DC policymakers

Some members of Congress, their staffers and other government employees received special preferential treatment on loans from former mortgage-lender Countrywide Financial, a House panel found. They received “sweetheart deals” by being part of the “VIP program,” according to report from the House Oversight and Government Reform Committee.

The program included use of a “referral desk” where members of Congress and their staff could call to receive “enhanced customer service and discounts.” Investigators found that the phone calls had been recorded at the time, but “the recordings were destroyed as part of regular system maintenance prior to congressional interest in Countrywide’s VIP program.” The three-year long investigation produced documents and testimony that shows Countrywide used the VIP program as a “tool to create a favorable impression of the company on Capitol Hill.”

Rep. Jason Chaffetz characterized the “VIP program” as “something you couldn’t just pick up the phone or go down to your local Countrywide representative and get” and he says it’s clear “there was an attempt here to influence.” Chaffetz tells Anderson that “a little bait was put out in front of these people and unfortunately a number of them bit on both sides of the aisle.” Watch this preview and tune in for the full conversation at 8 and 10 p.m. ET.

Several of the legislators cited in the House report on Countrywide loans have provided the following statements to CNN:

Dodd statement from spokesman Bryan DeAngelis

This report recycles old allegations that Republicans and Democrats on the Senate Ethics Committee investigated for 14 months before concluding that Senator Dodd did nothing wrong. The Senate Ethics Committee found that the rates and terms Senator Dodd received were widely advertised and available to other borrowers. When questions were first raised about his loans, Senator Dodd was clear in saying he became a Countrywide customer back in 1999 – something noted on the first page of the Senate Ethics Committee's report.

When it comes to ensuring proper regulation of the financial sector and making sure there is appropriate transparency, Senator Dodd’s record speaks for itself. Case in point: The Wall Street Reform Act (aka Dodd-Frank) and the Credit Card legislation as well as his support for the Oxley reforms of Fannie and Freddie.

Towns statement Attributable to Charles E. Lewis, Jr., Deputy Chief of Staff/Communications Director

This report does not alter Rep. Towns’ assertion that he did not knowingly receive any preferential treatment.

Conrad statement attributable to Sen. Kent Conrad

The Senate Ethics Committee spent a year and a half reviewing every last page of my loan history with Countrywide. They determined – unanimously, Democrats and Republicans – that I received no preferential treatment and in no way acted unethically. That is the truth.

Sessions statement attributable to Communications Director Torrie Miller

Out of an abundance of caution in managing his personal finances, Congressman Sessions specifically requested that he not be extended any special benefits or treatment from Countrywide. The Oversight and Government Reform Committee’s report confirms that Congressman Sessions’ simple request was honored and that he was treated like every other customer.” – Torrie Miller, Communications Director for Congressman Pete Sessions (R-TX-32)

McKeon statement attributable to Communications Director Alissa McCurley

Mr. McKeon has been completely upfront and transparent about his loan. He was never aware of any Friends of Angelo designation, and he has provided the media all his loan documentation from the 1998 loan. Mr. McKeon shares Chairman Issa's interest in determining if there was any wrongdoing by Countrywide.

Gallegly statement attributable to Communications Director Tom Pfeifer

Rep. Gallegly has had loans on three homes in California and two homes in Washington, DC, over the past 20 years. Only one went through Countrywide. He took out the loan in 2004 and paid it off less than a year later. The payoff amount was about $77,000 at 5.75% interest, comparable to rates at the time. By comparison, his primary mortgage on the same house carried a 4.25% interest rate. He has not had a Countrywide loan before or since.

At the time, Countrywide was the largest mortgage lender in the nation and, by all accounts, considered to be one of the most reputable. Rep. Gallegly never asked Countrywide for any type of preferential treatment nor was he aware of any type of preferential treatment. To the credit of news organizations, reporters have noted prominently that there is no accusation of wrongdoing.

In fact, in his 32 years of public service and as a businessman prior to his election to Congress, there has never been a hint of impropriety or wrongdoing on Rep. Gallegly’s behalf.


Filed under: Congress • Keeping Them Honest
soundoff (6 Responses)
  1. Steve B

    I guess we can say that bi-partisanship works - but only when Democrats and Republicsns are helping each other bury illegal activities like loan preferences, special investing privileges, travel and leisure expenditures and other perks that go with their elected offices. My wife is a Democrat and I am a Republican. We are both so tired of the press doing a story like you did tonight and then see nothing as a result. We both respect you, Anderson, but don't you get tired of just reporting and want to go for the gusto??? These people have been sticking it to US citizens and especially the fly over states for 20+ yrs.

    We pay for investigations but nothing substantial ever happens. How about an investigation that really does go after the things you talked about tonight? We all know that these Countrywide loans were favors for votes. I know the press has boundaries and it is currently your job to report. But how about some investigative reporting that actually goes after the wrong doers and sinks some investigative journalistic teeth into these people?

    We need people to make a difference and go beyond reporting and go back to fundamental journalism and hold someone accountable for ripping off America. We are all getting tired of this stuff being swept under the rug and having to listen to Tom Cruise and Katie Holmes divorce issues.

    July 5, 2012 at 11:26 pm |
  2. M.carroll

    This is so not right and should not be legal. The bail out of all the banks with no one going to jail and leaving the US tax payers on the hook. The congress is broken and are on the take. To many old boy clubs backdoor deals that should not be happening.

    July 5, 2012 at 10:37 pm |
  3. helmetbreaker

    All of them should lose their pensions!

    July 5, 2012 at 10:07 pm |
  4. michael

    I hope CNN stays on this story we need to pursue the truth and hold these professional (crooks) politician accountable. I know so many hard working people that are having problems re-mortaging and yet all our elected officials keep taken an taken from their constituents.

    Thank You

    July 5, 2012 at 8:30 pm |
    • Lion

      How can anybody be surprised at this?

      Our government is as corrupt as the government in mexico.
      For those of us that lost our jobs and homes largely because of the rich and powerful this is really a low blow.
      I think as a condition of office, Congressmen should be required to show every penny of income from this time forward.

      Damn, I am angry!

      July 6, 2012 at 2:37 pm |
  5. Griff.

    "Now you need to wait until after the election, and then bring it up again; that way there is no bias!"

    July 5, 2012 at 8:08 pm |