Countrywide Gave Special Attention To Lawmakers

Holbrooke, Shalala and Jackson did not return phone calls seeking comment. But Conrad and Dodd, both of whom have committee jurisdictions that affect Countrywide, yesterday dismissed the notion that they received favorable deals, and they said they did not know that the FOA loan category existed.

"I was never told I was given preferential treatment. I didn't ask for it, didn't seek it, and as far as I know, I didn't get it," Conrad said.

"As a United States senator, I would never ask or expect to be treated differently than anyone else refinancing their home," Dodd said in a statement.

Bryan DeAngelis, a spokesman for Dodd, said neither the senator nor his wife ever spoke to Mozilo about their loans.

The senators' mortgage rates appear to be at or even above the prevailing rates at the time. Conrad received a 4.875 percent rate on a 15-year mortgage in April 2004 for his beach house and a 5.75 percent rate on a $96,000 mortgage in July 2004 on an eight-unit apartment building in Bismarck, N.D.

Conrad said he has never sought "points," an upfront charge paid to lenders in exchange for a lower interest rate over the life of the loan. He said he was baffled by Mozilo's e-mail instructing the loan officer to "take off 1 point."

Dodd borrowed $506,000 at 4.25 percent to refinance his Washington townhouse and $275,042 at 4.5 percent to refinance a home in East Haddam, Conn., according to Portfolio. Quoting internal documents, the magazine said Countrywide waived three-eighths of a point, or about $2,000, on the first loan and a quarter of a point, or $700, on the second.

"When my wife and I refinanced our loans in 2003, we did not seek or expect any favorable treatment," said Dodd, who is negotiating a bill to crack down on some types of subprime lending. "Just like millions of other Americans, we shopped around and received competitive rates."

Steve Calem, vice president of real estate lending at American Bank of Rockville, said such special deals are in line with his own experience.

"I work in a high-loan-amount environment, and in the past, when I've competed against big banks, and they've wanted to make a loan for a high-income individual, they have reduced their rate to below market by half of 1 percent to 1 percent to secure the loan," Calem said. "For special relationships, there's all sorts of stuff that goes on like that."

With more than 20 million loans in its 40-year history, Countrywide has done its share of business among members of Congress. In recent years, about 16 members have disclosed mortgages from the lender, including the third-ranking House Republican, Conference Committee Chairman Adam H. Putnam (Fla.), and the third-ranking House Democrat, Whip James E. Clyburn (S.C.).

Offices reached yesterday said the lawmakers obtained their mortgages through customary channels, with one even using Countrywide's toll-free number.