Author: Greg Hartley - Blue Moon Appraisals 3216 Gaylark Road, Bmingham, AL 35216
Election year politics have just taken an interesting, if somewhat obscene, turn with the recent revelation that Senate Banking Committee Chairman Christopher Dodd, D-CT, may have received preferential mortgage terms on two mortgages in 2003. Sen. Dodd, a former presidential candidate, is reported to be a potential vice-presidential pick by Sen. Barack Obama.
The Associate Press and Wall Street Journal reported on Friday, June 13, that Sen. Dodd reportedly received special treatment from Countrywide Mortgage when he refinanced both his Washington townhouse and his principal residence, saving about $2,000 a year in interest payments on the townhouse and $700 a year on his home in Connecticut.
The savings in interest for both home loans totaled about $75,000 over the life of the loans. How very interesting it is that a senator who is trying to flesh out a plan to rescue homeowners may have benefited from the actions of a leading offender in the mortgage meltdown.
Sen. Dodd said, "As a United States senator, I would never ask or expect to be treated differently than anyone else refinancing their home." Maybe he didn't ask to be treated differently but it doesn't appear that he turned down the loan terms down, either. What is really funny about this fiasco is that Sen. Dodd has criticized Countrywide as a company whose practices he has called "abusive."
Sen. Dodd was also named as a "Friend of Angelo," apparently a special program that awarded discounts and waived fees for people who know or are considered friends of Angelo Mozilo, chairman and founder of Countrywide Mortgage. Yeah, I'm in the business and I had to beg "Bob" to give me a 1/2% break on the origination fee when I refinanced.
Let us take a moment to look at a couple of points here:
- Sen. Dodd, a confirmed enemy of appraisers, tries to ram regulation down our throats in the form of a surety bond. How in the world could a man conceive of such a diabolical plan unless there was money to be made from it? The only thing of surety about that bond is that it would cost us all a lot of money and open us up to litigation. No money has changed hands yet, but I am willing to bet a USB flash drive that Sen. Dodd knows someone, or is related to someone, who would stand to make a lot of money on that little scheme.
- Sen. Dodd received preferential treatment from Countrywide Mortgage, a leading offender in the mortgage meltdown and a company that is currently high on the implode-o-meter. Sen. Dodd is a "Friend of Angelo." Sen. Dodd has lately criticized Countrywide. Probably not a good idea. I wonder who outed him?
- Sen. Dodd is the chairman of the Senate Banking Committee. A high position of power, a mover and shaker. Nothing is going to happen on Capitol Hill concerning the mortgage meltdown if Sen. Dodd doesn't bless it. The stars are aligned, pigs are flying, and the hounds have been loosed. It appears, yet again, there is no space between money and politics.
If Sen. Dodd is an honorable man and has a shred of decency about him, the only thing left for him to do is to admit his mistake and resign as the Chairman of the Senate Banking Committee. Indeed, the higher road would call for him to resign from the committee altogether, but why ask for the stars when the sky will suffice? Sen. Dodd's integrity is now in question and his loyalties appear to lie somewhere between one side of his wallet and the other.
There is no place in our senate for such a duplicitous political player. This man is not in touch with what is happening in the real world, as evidenced on the one hand by the ignominy of the surety bond issue and on the other by profiting from special relationships with abusive lenders.
What surprises me most is that the appraisers from his own state have not tried to hamstring him. The majority of appraisers in this country are hard working, honest, and ethical men and women who are trying to provide for their families and make a real and meaningful contribution to the industry.
Saddling us with additional and unnecessary regulations, surety bonds, and fee reductions does nothing to protect the integrity of the appraisal process; truly, it diminishes it.
Author: Greg Hartley - Blue Moon Appraisals 3216 Gaylark Road, Bmingham, AL 35216. (205) 823-5150 (o); (205)823-5132 (fax) - eMail: [email protected]
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