Dodd Says He Will Refinance His Countrywide Mortgages

U.S. Senate Banking Committee Chairman Christopher Dodd said he and his wife will refinance two mortgages with Countrywide Financial Corp. in response to criticism that he got preferential terms, Bloomberg reported.

"We will refinance our homes and, in an abundance of caution, we will be seeking a third party to negotiate the new loan terms on our behalf," Dodd said today at a news conference in Hartford, Connecticut.

The Connecticut Democrat, whose panel oversees the U.S. mortgage industry, today released more than 100 pages of documents related to refinancing of his 2003 mortgage loans. Countrywide, the lender that sold itself to Bank of America Corp. last year, drew criticism from New York Senator Charles Schumer for policies that he said helped spur the subprime crisis.

Dodd and Senator Kent Conrad, a North Dakota Democrat, received loans through Countrywide's "V.I.P." program, which waived points, fees and loan restrictions for prominent people, Portfolio magazine reported in June.

Dodd said he refinanced mortgages in 2003 on a Connecticut home he's owned for 27 years and a Washington residence he bought with his wife, Jackie, in 1999. The senator said he and his wife shopped around with different lenders, deciding to stay with Countrywide because they offered loan rates and terms that were competitive with other lenders.

"We negotiated only with loan officers," Dodd said. "There was nothing special about the rates, fees or points. We were never offered special or sweetheart deals, and if anyone had made such an offer, we would have severed the relationship immediately."