Dodd deals with VIP deal allegations

Hartford (WTNH/AP) - An official told Congress in secret testimony that Dodd was one of two senators to receive VIP mortgage discounts from mortgage lender Countrywide.

This latest revelation directly contradicts Senator Dodd's claim that he received no special treatment when it came to the mortgage on his home in Haddam and another residence in Washington.

The Associated Press has obtained transcripts from a year ago of secret testimony before a Congressional Ethics Committee.

During that testimony, the official at Countrywide, who handled the loan, told Congress that Senator Dodd was told from the start he was getting VIP mortgage discounts.

Countrywide's Robert Feinberg said the senator was made aware that, "who you know is basically how you're coming in here" and that influential people received breaks on rates, fees and points as part the special program offered by Countrywide's CEO.

In an interview last June, Senator Dodd, who heads the banking committee, told News Channel 8's Mark Davis about the allegations.

Davis: "What did you believe when they said 'you're a VIP?'"
Dodd: "Well, I didn't know. I was told afterward that it's sort of an enhanced customer service kind of an operation but no one ever said, 'By the way because you're that, you are going to get some special treatment or deal.' As I said earlier, we went out and shopped and did what million of others have done in this situation in the past."

Back in February, Senator Dodd made mortgage documents and materials available to the media.

A spokesperson for his office said, "The rates and terms they received were perfectly typical at the time they negotiated for them; they had absolutely no reason to believe that any special or sweetheart deal was being offered."

A spokesperson also said, "If anyone had made made such an offer they would have severed that relationship immediately."

Democratic Senator Kent Conrad of North Dakota was also named by the Countrywide executive as knowing about the VIP deal.

The Ethics Committee is looking into this and determining whether the senators violated any standards of conduct.

Senator Dodd, in his 5th term, may be in for a tough fight for re-election in 2010 because of the ongoing controversy over his mortgages.