Bismarck Tribune - North Dakota News - Conrad: Get loans like anyone else does

Conrad: Get loans like anyone else does

Jun 18, 2008 - 04:07:02 CDT

Given Sen. Kent Conrad's well-earned reputation for financial acumen on the country's behalf, it's disappointing to hear that he got himself into a position of receiving preferential treatment in personal business matters because of his standing in the U.S. Senate.

He says that without seeking it or knowing it, he got special treatment from Countrywide Financial in 2004, when refinancing the mortgage on a beach home in Delaware. A point was shaved off the interest rate. Countrywide also lent Conrad $96,000 in 2004 to buy his brothers' interest in an eight-unit Bismarck apartment house. Countrywide normally limits its loans to four-unit buildings.

Conrad has taken the initiative of seeking an ethics inquiry by a Senate committee. He's made a donation to Habitat to Humanity in the amount he will have benefited in the beach house refinancing.

Those moves help - some.

But it's damage control.

Conrad, along with Sen. Chris Dodd, D-Conn., got tangled in a net of relationships involving Countrywide CEOAngelo Mozilo (who reportedly maintained a "Friends of Angelo" list) - whom Conrad says he never met but talked with on the telephone - and James Johnson, who was at one point head of Fannie Mae, a national lender and guarantor of loans. Conrad readily calls Johnson a longtime friend and says that his friend recommended Countrywide and Mozilo. More tangles: It's reported that Johnson received home loans from Countrywide.

Someone with the financial smarts of Kent Conrad should have known what the prevailing interest rate was for an ordinary borrower and that he was getting a deal. It's on Countrywide that it seems to have bent its own rules to finance the commercial unit buyout, but still it's connected with Conrad's name.

He should be forthcoming, now and throughout the lifespan of this mess.

Conrad should remind himself that North Dakotans' trust is his most valuable asset, and repair is needed, so that he can continue to be a capable leader.

News > Opinion

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Comments

James wrote on Jun 25, 2008 10:22 PM:

" To Hide, yup that is what Conrad is banking on... pardon the pun! But, we all have to remember that comes the next time he is up for re-election! We need to get rid of him! "

Hide wrote on Jun 25, 2008 3:42 PM:

" Seems like this blogg is slowing down just like Conrad would prefer. lets all Forget about what he did no biggie "

ToBanker wrote on Jun 25, 2008 11:23 AM:

" Despite her excellent credit, Dewdrop would NEVER get that interest rate simply because she is Dewdrop, not Sen. Dewdrop. As Sen. Dewdrop her lender would know that she would be voting later on using U.S. taxpayer money to bail him out. You know, just like Senator Conrad is. "

Dewdrop wrote on Jun 24, 2008 8:54 PM:

" Banker: I do get a good rate.... BUT, certainly NOT as good as a certain Senator!

Why does HE qualify for a better rate than those of us that earned our credit rating and not because we are 'FOA'! "

ToHide wrote on Jun 24, 2008 5:50 PM:

" He's a Democrat, so we know he won't resign no matter what. He'll follow the Rep. William "Cold Cash" Jeffereson model knowing that in 2012 he can get re-elected if he "comes home" a couple times and talks about his seniority and how "powerful" he is. "

Hide wrote on Jun 24, 2008 4:32 PM:

" Conrad is good at hiding isn't he. Like I said him denying is the last thing anybody will hear about it from him. Anybody know how tio actual get him to resign? do we need a petition? anybody know what we have to do to force him out? "

to LL wrote on Jun 24, 2008 12:09 PM:

" Whatever, keep drinking the Kool-Aid. If the gov't isn't going to be responsible and introduce term limits for Senators and House Reps, the responsibility falls on us to get these guys out. "

RLT wrote on Jun 24, 2008 9:01 AM:

" Question for the good Senator --- why does he need to spend over $1 million dollars on a vacation home in Bethany Beach, Delaware (4 hr drive from the capital on a good day)? Are there no vacation spots in ND?? I grew up outside Bethany Beach, this area is booming, there were numerous deals struck on property with the intent to flip the property in a year or so and make big bucks ($1 million is not very much in this area). How did Senator Conrad get in on this, where did the down payment come from??

Question for ND people: How does a Senator who was formerly a tax commissioner, with only a Senate salary get the money to sign a deal for over $1 million?? Something you all in ND just may want to check out. Looks to me like a good journalist project -- do the investigation, follow the money.

Term limits are the only hope for the US. We can't continue to establish a rich ruling class like we currently do in the Senate and house, Repub and Dem. Money opens the door to these people, they need to go. "

Banker wrote on Jun 24, 2008 6:26 AM:

" Dewdrop posted "I have an excellant credit rating, and have cash in the bank so why shouldn't I qualify for a loan @1% less than other people get?"

To Dewdrop: If you have solid assets to pledge, good cash flow, strong credit history and have developed a relationship with a lender at the bank, I see no reason that you would not be able to get a discount from the desk (average) rate on many types of loans. "

Dewdrop wrote on Jun 23, 2008 4:55 PM:

" I need a loan to buy a store complex, do you suppose I can get hold of Conrad and he can refer me to one of his 'special deals' guys? I have an excellant credit rating, and have cash in the bank so why shouldn't I qualify for a loan @1% less than other people get? Right.. LL, TK, soldier, grumpy old republican, JB and waralan? "

Resign wrote on Jun 23, 2008 12:50 AM:

" Maybe Sen. Conrad should resign. That would give him the free time to find ONE story that he could stick to instead of having to change stories every time new facts are revealed. Of course if he did the honorable things, then he wouldn't be around to vote to bail out Countrywide with taxpayer money. So far, at least, once Countrywide buys a politician they stay bought. "

James wrote on Jun 22, 2008 11:17 PM:

" Conrad gets loans like everyone else? What a joke Conrad! Only dante and x and momofteens and vor believe that one and I don't event think they believe it they just will not admitt it! "

James wrote on Jun 21, 2008 2:57 PM:

" waralan:
Getting a loan based on your financial records is one thing, getting a lower than normal rate (below what others with the same financial ratings can) on a loan based on you being a US Senator is the point in question. If a Republican had done this do you think any Democrat at all would let it go by? I highly doubt it.
And the fact that Conrad is THE chairman of the Budget Committee, makes it even more unethical.

The Ethics Committee is looking into charges by a non-government watchdog group, Citizens for Responsibility and Ethics in Washington, that the special loans to Conrad, D-N.D., the Senate Budget Committee chairman and Sen. Christopher J. Dodd, D-Conn., the Senate Banking Committee chairman, violated Senate rules on gifts that forbid knowingly accepting a loan on terms more favorable than those available to the general public. "

waralan wrote on Jun 21, 2008 11:10 AM:

" Obviously I don't fall into that class, but I fail to see what is wrong to receive extra service based one's financial ability.
Me thinks thinks this is much to do about nothing.cwqaw "

xx wrote on Jun 19, 2008 9:47 PM:

" Ethics inquiry. Is that for real. I believe the ethics committee is made up of the same kind of people who get preferential treatment. You know where that is leading. File 13!!!! Nothing will ever come out of it "

kk wrote on Jun 19, 2008 1:16 PM:

" this state is so incetual it does not matter ifyou are a republican or a democrat~ Conrad was married to Shafers sister ~and they were republican~ ALL POLITICANS "

Dewdrop wrote on Jun 19, 2008 7:34 AM:

" Isn't Conrad in Obama's camp? TIME FOR A CHANGE!

We all know what Conrad did was unethical in this situation, the Dems can spin it all they want, the facts do not change! If a Republican had done this, would the Democrats posting here be as 'fair-minded'? TIME FOR A CHANGE "

seven gone wrote on Jun 19, 2008 1:11 AM:

" sure kent, of course. and when ever you buy a car, you call the ceo of general motors, and a can of beer, you call the ceo of budweiser ... etc

influence peddling is not only unethical, it should be illegal. no wonder the country is in the mess it's in, with the nest of crooks in there, and stashed into higher places in the government, the way they are.

time for a change, all right. "

Matt wrote on Jun 18, 2008 9:49 PM:

" Maybe this is what could be called "dial-a-loan" which would mean you have to be really connected! "

JB wrote on Jun 18, 2008 9:21 PM:

" I agree with Grumpy Old Republican. Let's get back to trying to fry Hoeven. "

tommy wrote on Jun 18, 2008 9:08 PM:

" How did he not know he received preferential treatment? It's not everyday that a ordinary person gets to speak with the president of their lending company... "

westriver wrote on Jun 18, 2008 7:45 PM:

" Senator Conrad has changed his story at least three times. Is he trying to find one that people believe, or can't he remember from day to day what he said???? "

Halatbis wrote on Jun 18, 2008 6:59 PM:

" A couple of thoughts: Sen. conrad could not admit he knew he was getting a special deal. As we are finding as the story unfolds is that Countrywide has been getting a major portion of business from Fannie Mae--Fannie is a pseudo gov't operation--the congress (Conrad is a member) has oversight and legislative authority over its operations. Therefore, to say that Conrad asked for a loan just as any other person would seek the best deal is disingenuous, to say the least--very close to an outright lie. Mozilo of Countrywide knew who Conrad is when he talked on the phone--Conrad knew of Countrywide as a lender. This is not an innocent and accidental hookup. There is no way to show or prove that Conrad or Dodd did anything to help Countrywide--but then, there are ways to return a favor without ever going on record with a vote.
ND'ers: wake up and smell the coffee--Sen. Conrad is just as quick to line his pockets as the next guy--the difference is that he has "influence" to trade for favors rendered. "

just a hick wrote on Jun 18, 2008 6:58 PM:

" "Conrad called his friend James Johnson in 2002 and asked who to talk to about a mortgage." Kent doesn't know any bankers in North Dakota? Nice way to support your home state. I guess he forgot to fight for us this time.

Unfortunately the "ethics" committee will report no wrong doing, they don't want to open a can of worms. "

kk wrote on Jun 18, 2008 5:53 PM:

" to foff~ I hope you are joking! THe tribune should be commended for bringing the news to the public~ better than the local tv stations that think news is seeing grandma moses growing apples or some other trivial matter.

Politicans NEED to be held accountable by the laws that they hold us to~ I frankly think that Conrad got caught on this one~ how many other things has he done~ I say that ALL politicans should not be allowed in office for more than 2 years~ keep it clean and changin~ they get too comfortable and it becomes a great job for them with all the benefits and perks~ TIME TO RESIGN CONRAD "

young republican wrote on Jun 18, 2008 4:06 PM:

" Hey, Grumpy old Republican!
He lied. the senator lied. He didn't say I used my influence to get the best deal I could get. That would be something you should be able to get behind - I would to. He said he had no idea he got a deal! Do you understand? It is even sadder if you, as a self proclaimed Republican, say it is okay that he LIED ABOUT USING HIS INFLUENCE to get a better deal on his loan.

I do everything I can do to get a good deal when I take out a loan. But I wouldn't LIE about the fact that I got a deal. I would be proud and tell everyone if my banker (CEO, loan officer, or teller) gave me a deal because I was a better customer or had a better credit score than others. I AM a great customer with GREAT credit. Nonetheless, if I got the deal because of my position, rather than my credit and payment history, that would be an unethical way for me to go about securing a loan.

If you don't understand this I hope you are just a grumpy old republican and not a legislator. "

limitations wrote on Jun 18, 2008 2:18 PM:

" All of this make a strong case for term limits. People, regardless of party, get to familiar and comfortable in DC. "

Sheesh wrote on Jun 18, 2008 1:27 PM:

" Makes you wonder about what else goes on up in Washington that we will never find out about. And not just with Conrad, but the whole lot of them up in DC. I have to laugh even harder when people actually act surprised when something like this leaks into the news, like it is so unbelivable. "

Razors Edge wrote on Jun 18, 2008 1:24 PM:

" Soldier:

He still got a loan no one else would get based on he was a Senator. Whether or not he got a special interest rate doesn't matter. They should've never given him a loan in the first place. When a company goes against its own rules for a politician they don't do it out of the kindness of their heart. "

whatelseisnew wrote on Jun 18, 2008 1:23 PM:

" So how could Conrad NOT know he was getting preferential treatment??? You know darn well he was expecting a deal, because when I go to ask for a loan, I don't ask to talk to the Bank President...I talk to a loan officer. Why would he have even contacted the head honcho directly at Countrywide if he did not expect to receive preferential treatment....lame lame lame excuse...I don't believe a word Conrad says! "

Grumpy Old Republican wrote on Jun 18, 2008 1:10 PM:

" Here it comes, kids...a die-hard Republican saying LET IT REST! Conrad did nothing that any of us wouldn't do on any day of any week with any company. If I personally were in a position of such power, I wouldn't hesitate to use that position to secure a better bank rate than Joe Blow can get. Despite my political affiliation, I will stand behind Senator Conrad here and tell people to give this one a rest. "

foff wrote on Jun 18, 2008 1:06 PM:

" Famous and influential people ALWAYS get preferential treatment, whether they ask for it or not.

Shame on the Tribune for blowing. "

Soldier wrote on Jun 18, 2008 1:01 PM:

" To Rusty: Just to clarify, the exception to the policy because he is a US Senator was for the apartment complex (8 unit instead of the usual 4) not the interest rate. "

Loan wrote on Jun 18, 2008 12:34 PM:

" I need a new Chevy truck. Does anyone have the number to the CEO of General Motors handy?

Sen. Conrad should now do the right thing and resign immediately. "

rusty wrote on Jun 18, 2008 11:49 AM:

" What Kent Conrad did, is a clear violation of the Senate Ethics Rules, which bars lawmakers from getting loans more favorable than those available to the general public. Also, in an e-mail (now made public by MSNBC) from Mozilo (CEO of Countrywide), he even stated the the interest rate exception was "due to the fact that the borrower is a Senator". Shame on Kent Conrad. "

Heritage wrote on Jun 18, 2008 11:30 AM:

" NDer - read the story at the following link: http://www.bismarcktribune.com/articles/2008/06/15/news/state/158041.txt.

In this story Conrad says the following: Conrad said Friday that he had placed a personal call to Mozilo in 2002 seeking a mortgage for the Delaware home. But he said Countrywide's rates were competitive with another offer he received..

So Senator with two different quotes, what are we to believe. Its the changing story that is nefarious. "

warmachine wrote on Jun 18, 2008 10:59 AM:

" Hey LL....I know that you believe that you understand what you think Conrad said, but I am not sure you realize that what you heard is not what Conrad meant....What is not on paper has not been said. Mr. Conrad apparently forgot that a little risk management saves a lot of fan cleaning. "

NDer wrote on Jun 18, 2008 10:58 AM:

" According to the story on Bloomberg.com - http://www.bloomberg.com/apps/news?pid=20601070&sid=at4OMHpv_wEo&refer=home - Conrad called his friend James Johnson in 2002 and asked who to talk to about a mortgage. Johnson was apparently standing next to Countrywide's CEO and said, "Here, talk to this guy" and handed the phone to Mozilo. They talked "for 30 seconds without discussing the specifics of any loans." Mozilo gave him a loan officer's phone number and Conrad called the loan officer and arranged for a loan... just like anybody else would.

Doesn't sound so nefarious when you learn the rest of the story, does it? "

Heritage wrote on Jun 18, 2008 10:45 AM:

" On a radio station today in Fargo, Conrad said he called Johnson who indicated that this Mozilo was there with him and Johnson handed him the phone, now in the stories in the Tribune Conrad indicated he called Mozilo, so Senator which story is it?? "

Barney wrote on Jun 18, 2008 9:45 AM:

" NDr - Conrad admitted he does/did not know the CEO so your statement about calling someone you know is just not true. HE DID NOT KNOW THE GUY and called knowing fully, in my opinion, knowing what he was doing. "

NDr wrote on Jun 18, 2008 9:31 AM:

" Senator Conrad did what any other person would do. You call the person you know. I deal with two different banks between my businesses and my personal banking. At one, I know one of the loan officers. At the other I know the CEO. Those are the people I deal with each time. He did nothing anyone of us wouldn't do as well. We'd call the highest ranking person we know in hopes of getting the best price. "

kk wrote on Jun 18, 2008 9:11 AM:

" I believe Conrad is a typical politican~only bettering himself and he could care less about the taxpayers of ND~ just because he is "friendly" does not mean he cares~

He knew exactly what he was doing when he got the deal~ he just got caught~plain and simple~ and he has the money so he tried to turn it into a donation~ for a tax credit

He will NEVER return to ND~ that is for certain~ he is on his way to bigger things~ "

lmnop wrote on Jun 18, 2008 8:55 AM:

" When they retire from congress they will never step foot in ND again. "

TK to LL wrote on Jun 18, 2008 8:53 AM:

" Well Said ~ totally agree!!!!! "

scoob wrote on Jun 18, 2008 8:37 AM:

" Who writes these opinions / editorials??? What a bunch whooie!! Why not just stand outside your office and shake your finger toward Washington and scold the man.

Senator Conrad has been and will continue to be forthcoming on this. I have no qualms about his ethics and his behavior and I find this article to be just a waste of time......find some real issues to discuss and put it out there for public discussion, but forget about trying to put any issue to this non-issue topic. "

la wrote on Jun 18, 2008 8:22 AM:

" Now for the rest of this story. Last night, Conrad has admitted that he called directly to the CEO of Country Wide regarding this loan. Now for all us house borrowers maybe we should get the personal phone number for the CEO of your local bank so that an appeal can be made for a 1% rate discount. You know what that answer will be. Our Senator has been quoted as the one person who knows everything to do with the nation's budget in Congress but DOESN'T KNOW THAT HE WAS GETTING A INTEREST BREAK. Really! Are you buying this story. Interesting Again! "

Barney wrote on Jun 18, 2008 7:41 AM:

" Here is a quote from Sen Chris Dodd (another Countrywide VIP) in an AP story - "I never would, Dodd told reporters. I mean, the idea that you would call the CEO of a bank to get a mortgage ... I just wouldnt do it. What does that say about our "Sainted" Senator Conrad???? "

Local Guy wrote on Jun 18, 2008 7:38 AM:

" Kent does a good job for ND but he made a mistake in judgement here. To say something like 'I never met him, I just talked to him on the phone' doesn't help. I think Senator Conrad is trying to make this right and will give these types of matters more consideration in the future. I say give him a break this time. "

Barney wrote on Jun 18, 2008 7:30 AM:

" I don't believe Kent didn't think he would be getting preferential treatement by making the call to the CEO of Countrywide whom he did not personally know. That smacks of arrogants, lack of ethics, morals. Kent knew what he was doing and only those who blindly follow him can't see/admit that. "

Real Guy wrote on Jun 18, 2008 7:21 AM:

" Why is it that Sen. Dodd admits he knew he was getting special treatment, but Sen. Conrad says he was totally in the dark? "

LL wrote on Jun 18, 2008 6:43 AM:

" I believe that Kent Conrad was completely forthcoming in this episode. Nothing more needs to be said and I fully support him. The entire hardworking North Dakota legislative team in Washington is an asset to all of us living in the United States and especially North Dakota. "

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