Here’s a mini-scandal we forgot about: Sen. Chris Dodd, the chair of the Senate Committee on Banking, Housing and Urban Affairs, says he plans to refi two mortgages he took from Countrywide in 2003, under the company’s “Friends of Angelo (Mozilo)” program. Of course, Dodd claims he absolutely had no idea he was getting special treatment, and now he regrets having done any business with the company.
So five years later, he’s refinancing the loans, but we we have to ask… how does his interest rate, today, compare to the interest rate he paid in 2003? We don’t know what his terms were, but we have to figure that Dodd has a high credit rating, the ability to put down a full down payment and exemplar job stability. Given that mortgages are as cheap as they’ve ever been, this would be a real nice windfall for him. And even if it’s not, it’s all show, since all this means is that Countrywide (now Bank of America) gets paid off immediately, rather than over time. Big whoop.