Senator denies asking for favors on loans

WASHINGTON, June 23 (UPI) -- U.S. Sen. Kent Conrad, D-N.D., Monday denied asking for special deals from Countrywide Financial in financing two properties.

Countrywide reportedly shaved 1 point in mortgage fees on a loan of more than $1 million to Conrad and approved a loan for an eight-unit property, despite rules limiting such loans to four-unit properties.

In a letter sent to The Wall Street Journal complaining about an editorial published June 16, titled "Beltway Financial," Conrad said he called a friend for advice on a loan in 2002, who "happened to be with the head of Countrywide Financial when I called."

Conrad said he spoke with Countrywide's Chief Executive Officer Angelo Mozilo for "about 30 seconds," before being referred to a junior loan officer.

In 2004, when refinancing a 15-year mortgage, "internal Countrywide e-mails show they waived a 1-point fee worth $10,700 … without my knowledge," Conrad wrote.

Concerning the eight-unit property, "they have told me they did make exceptions when they could sell the loans on the secondary market, which is what they did with my loan," Conrad wrote.

"I sought no favor ... and was not aware of any favor provided by Countrywide Financial," the senator wrote.