What Are They Hiding? Democrats Create More Drama Surrounding Chris Dodd’s Sweetheart Mortgage Scandal

Wednesday, 21 October 2009 14:18

In the News

WASHINGTON - Days before President Barack Obama travels to Connecticut to raise campaign cash for U.S. Senator Chris Dodd’s (D-CT) flailing re-election bid, Dodd’s fellow Democrats in the House are blocking an effort to permit further investigation into the controversial sweetheart mortgage deals obtained by Dodd from Countrywide Financial.

According to a Wall Street Journal editorial, "Senators Chris Dodd and Kent Conrad lawyered up when the Senate ethics committee asked about their VIP loans from Countrywide Financial. But the sweetheart Senators may not be able to stop another look at their dealings with the subprime mortgage factory. A Democrat on the House oversight committee, Illinois freshman Mike Quigley, tells us that he supports a subpoena to obtain documents on the ‘Friends of Angelo’ loan program. Named for former Countrywide CEO Angelo Mozilo, the program was used to curry influence with government officials. Bank of America, which bought the failed lender last year, has said it's ready to turn over the files as soon as it receives a subpoena."

The editorial goes on to state that "at a closed Thursday meeting of Democrats on the House oversight committee, several Members urged Chairman Edolphus Towns (D., N.Y.) to allow a vote on California Republican Darrell Issa's proposal to issue the subpoena. Mr. Towns received two mortgage loans from the Countrywide unit that processed VIP loans but claims he received no special favors... The aim is to find out the extent and impact of Countrywide's efforts to influence federal housing policy. This goes to the heart of the financial crisis. Countrywide was the largest originator of subprime loans and provided billions of dollars of mortgages to Fannie Mae and Freddie Mac, at huge cost to taxpayers."

"As Chris Dodd continues to hold closed door meetings on the critical components of health care reform, voters in Connecticut deserve to know what Dodd and his Democrat colleagues in Washington are trying to hide regarding his shady sweetheart mortgage deal," said National Republican Senatorial Committee (NRSC) spokeswoman Amber Wilkerson Marchand. "Senator Dodd should eagerly support the release of these documents in order to reaffirm his assertion that there was no wrongdoing in this situation."

The meeting of the House Oversight and Government Reform Committee ended abruptly last week as members of Dodd’s own party debated whether or not to delve further into the financial scandal. Tensions were so high that Democrats stormed out of the meeting room and changed "the lock on the door from the GOP’s meeting room to the main committee chamber" and kept "the only set of keys." According to Roll Call today, "Republicans say the move was retaliation for a behind-the-scenes video they shot that showed committee Democrats leaving their meeting room through a back door 30 minutes after they canceled a hearing that the majority said conflicted with Members’ schedules."

Roll Call goes on to note that "Before that hearing was terminated early, Issa was scheduled to call for a vote on whether the committee should issue a subpoena for records and documents relating to the Countrywide Financial VIP mortgage program. Democratic Sens. Chris Dodd (Conn.) and Kent Conrad (N.D.) obtained mortgages from the program, prompting Issa and other Republicans to question whether Dodd and Conrad obtained below-market rates because of their positions. However, the Senate Ethics Committee cleared both lawmakers in the matter."