U.S. senator: No Countrywide VIP treatment received

By John Poirier

WASHINGTON (Reuters) - The chairman of the powerful Senate Banking Committee on Friday denied a media report that he received preferential mortgage terms from Countrywide Financial Corp, a key player in the U.S. housing crisis.

Conde Nast's Portfolio.com website reported on Thursday that Sen. Christopher Dodd, a Democrat from Connecticut who is trying to push a housing rescue bill through the Senate, could save $75,000 over the life of the loans he obtained from Countrywide for two homes.

Dodd denied receiving any special favors from Countrywide and called such a suggestion "outrageous."

"As a United States senator, I would never ask or expect to be treated differently than anyone else refinancing their home. This suggestion is outrageous and contrary to my entire career in public service," Dodd said in a statement.

"When my wife and I refinanced our loans in 2003, we did not seek or expect any favorable treatment. Just like millions of other Americans, we shopped around and received competitive rates."

A Dodd spokesman declined to provide details about the mortgages.

Countrywide, one of several mortgage companies under federal investigation, had no immediate comment. The lender has been a target of consumer advocates, politicians and regulators who say its risky loans to people with poor credit histories helped fuel the crisis in the U.S. housing market.

News of Dodd's mortgages with Countrywide surfaced as he prepares for a Senate vote on his housing rescue legislation that would create a $300 billion mortgage insurance fund to save an estimated 500,000 borrowers from foreclosure. Similar legislation has already been approved by the House of Representatives and Dodd has said he wants to send a final bill to the president by July 4.