MUCH MORE ON ANGELO MOZILO and the Countrywide loan scandal.
UPDATE: John Galvin emails:
The linked Times article says: â€œIn an interview, Mr. Conrad said he was unaware of any special effort on his behalf and called his credit rating â€œspotlessâ€ in suggesting that he was eligible for favorable loan terms. He said he turned to Mr. Johnson and Mr. Mozilo because he was buying a property in Delaware and did not know where to get a mortgage in that state. After the phone call with Mr. Mozilo, a Countrywide loan officer called Mr. Conrad.â€
Can you imagine a a member of the Senate Finance Committee whoâ€™s too bloody stupid to google â€œDelaware Mortgageâ€, too stupid to ask the real estate agent who sold him the house to recommend some lenders, too stupid to simply ask any of the legions of DC folks who have beach houses at Bethany Rehoboth, and Lewes? If he canâ€™t even handle such a simple finance matter, howâ€™s he supposed to handle the finances of the USA?
New excuse from senators caught dirty: â€œIâ€™m the dumbest asshole ever born â€“ but vote for me anywayâ€.
That seems popular. But Conrad may be lying there:
Unless they asked, V.I.P. borrowers werenâ€™t told exactly how many points were waived on their loans, the former employee says. However, they were typically assured that they were receiving the â€œFriends of Angeloâ€ discount, and that Mozilo had personally priced their loans. . . . Senator Conrad borrowed $1.07 million in 2004 to refinance his vacation home with a balcony and wraparound porch in Bethany Beach, Delaware, a block from the ocean. Mozilo instructed a subordinate to â€œtake off 1 point,â€ or $10,700, according to a March 17, 2004, email.
Later that year, Conrad refinanced an eight-unit apartment building that he and his brothers owned in Bismarck, North Dakota. According to the former employee, the loan violated Countrywideâ€™s normal policy of providing loans for buildings of four units or fewer. In an April 23, 2004, email, Mozilo encouraged an employee to â€œmake an exception due to the fact that the borrower is a senator.â€
Possibly Conrad didn’t know he was getting special treatment here, but that goes back to the “dumb” part, doesn’t it?