Monday, June 16, 2008

The Dodd Special

Answering charges that he had received special treatment from Countrywide, a mortage lender, U.S. Sen. Chris Dodd noted in the Hartford Courant that he had shopped around and gotten the same rates available to millions of other Americans.

According to Portfolio, a Conte Nast publication, that is not strictly true. Dodd, chairman of the Banking Committee, “… received better deals than those available to ordinary borrowers. Home-loan customers can reduce their interest rates by paying “points”—one point equals 1 percent of the loan’s value. For V.I.P.'s, Countrywide often waived at least half a point and eliminated fees amounting to hundreds of dollars for underwriting, processing and document preparation. If interest rates fell while a V.I.P. loan was pending, Countrywide provided a free “float-down” to the lower rate, eschewing its usual charge of half a point. Some V.I.P.'s who bought or refinanced investment properties were often given the lower interest rate associated with primary residences.”

1 comment:

Anonymous said...

Many taxpayers are justly concerned over Sen. Dodd's connection with Countrywide, especially as they stood to benefit from the Mortgage Bailout Bill Dodd is championing. If anyone would like to call Sen. Dodd, here is the link on Freedom Works website. Check out their press statements for continuing info on this raw housing deal!