By DAPHNE RETTER, Post Correspondent
June 17, 2008
WASHINGTON - Two powerful senators in hot water over allegations that they sought special treatment from a mortgage lender could be forced to answer to their colleagues in a series of public congressional hearings.
Sens. Chris Dodd (D-Conn.) and Kent Conrad (R-ND) both claim they did not knowingly receive any preferential treatment from Countrywide Financial, but Rep. Jeb Hensarling (R-Texas) said yesterday he is asking House Speaker Nancy Pelosi (D-Calif.) to convene hearings to get to the truth.
"Although these reports are still merely allegations, it is disconcerting to think members of Congress might be knowingly or unknowingly receiving preferential treatment while millions of hardworking Americans struggle to repay their mortgage debts and cope with $4 per gallon gasoline and soaring foods prices," Hensarling said.
"We must ensure that no member is inappropriately benefiting from their position," Hensarling added in a letter explaining his plans to his colleagues.
Meanwhile, a Washington watchdog organization, Citizens for Ethics and Responsibility, asked the Senate Ethics Committee to investigate whether either senator received a Senate-related perk and also to establish a process to vet lawmaker loans.
Conrad said Saturday that he'd donate to charity the $10,500 that he appears to have saved when Countrywide waived one point on the mortgage.
Dodd, who is chairman of the Senate Banking Committee - the panel tasked with writing legislation to combat the foreclosure crisis - has insisted through a spokeswoman that he received a "competitive rate" on his loan.
The senator's involvement in a special program that awarded discounts and waived fees for "friends" of Countrywide CEO Angelo Mozilo was first reported by Condé Nast Portfolio magazine's Web site.
The disclosures come just days after similar revelations about former Fannie Mae CEO Jim Johnson prompted Barack Obama to ax Johnson from his vice presidential vetting team.
