Sen. Kent Conrad, D-N.D., continued to deny allegations on Tuesday that he received preferential treatment on two housing loans in 2004 from Countrywide Financial Corp.

The allegations stem from Robert Feinberg, a former Countrywide official who handled the loans of Conrad's $1.6 million Delaware beach house and $96,000 eight-unit apartment in Bismarck.

Last month, Feinberg, under oath, told Republicans on a House oversight committee during a closed-door meeting that Conrad and Sen. Chris Dodd, D-Conn., both knew they were getting preferential treatment on their loans.

In a conference call made to North Dakota reporters on Tuesday, Conrad said the testimony given by Feinberg last month contradicts what he told a Delaware newspaper a year ago. The senator said Feinberg told the Wilmington News Journal that "company policy precluded him from telling me. So he is contradicting his own story."

"I want you to know that I never asked for, or was aware of, or expected, any preferential loan terms by Countrywide," Conrad said, quoting a statement that he prepared for North Dakota television stations. "At no point did I believe I was being treated preferentially."

The senator said he and his wife, Lucy Calautti, owe less than $400,000 on the beach house and that he has an "impeccable credit rating." Conrad said he and his wife recently paid off the remaining $30,000 owed on their apartment in Bismarck, which serves as their North Dakota home.

Conrad said he can recall having one conversation with Feinberg when he was refinancing his Bethany Beach, Del., house and eight-unit apartment back in 2004, which is when Feinberg said Conrad allegedly accepted a "one point waiver" on his loan, saving him $10,500.

When the first Countrywide loan story broke last summer, Conrad donated $10,500 to Habitat for Humanity in Bismarck and changed his mortgage lender to the Credit Union Mortgage Association, which is affiliated with the U.S. Senate Credit Union.

"I've never cheated anybody out of a nickel," Conrad said. "I've never taken advantage of my position for financial reasons."

He continued, "I am highly, highly ethical. I just am. That's the truth. I didn't accept, didn't want, didn't need, any special treatment."

The Associated Press reported Monday that House investigators asked Feinberg if Conrad "was aware that he was getting preferential treatment?" Feinberg replied, "Yes, he was aware."

When looking to refinance his properties in 2002, the senator said he called his friend of four decades, Jim Johnson, for mortgage advice.

Conrad said Johnson was seated next to Angelo Mozilo, the former CEO of Countrywide, at the time of the call. Mozilo put Conrad in touch with a junior loan officer.

Conrad said the connection to Mozilo was a "fluke," and that he has no relationship with the former CEO.

Mozilo has since been charged by the Securities Exchange Commission for civil fraud and illegal insider trading.

During his 2008 campaign, President Barack Obama also axed Johnson from his team of vice presidential vetters when revelations emerged that Johnson had possibly benefited from a preferential mortgage deal with Countrywide, according to the AP.

"I understand the perception," Conrad said. "It is a perception from my side of this transaction that was serendipity."

Countrywide was purchased by Bank of America last July for $2.5 billion. It is believed to have helped spur the foreclosure crisis.

Gary Emineth, chairman of the North Dakota Republican Party, said more questions have been raised than answered over the allegations about Conrad's loans with Countrywide.

"He's not been totally forthright on it," Emineth said. "There's a kind of innuendo."

(Reach reporter Brian Duggan at 223-8482 or brian.duggan@;bismarcktribune.com.)