Over the last several days there have been a number of news reports regarding Congressmen, including Rep. Buck McKeon, getting special VIP mortgage loans from Countrywide Home loans. Countrywide has become the poster-child for the financial meltdown that has contributed to the “great recession” which our country continues to struggle with and is an important topic for the 2012 election year.

Let’s face it, there are many ‘friends and family’ programs offered by a variety companies which gives some form of discount or special benefits to those who participate. The idea that someone who participates in such a program doesn’t know it is quite suspect.

These Congressmen and Senators all get special treatment on a regular basis. Many of them get to bypass airport security when traveling; they get all kinds of perks that the regular taxpayers don’t get. For the most part there shouldn’t be any issue with these elected officials acknowledging it and being completely transparent about it. The problems arise when they just start to expect it and begin to overstep the bounds of moralistic behavior.    

Do you believe that the McKeon’s didn’t know they were getting VIP loans? It’s a question that we posed at the head of one of the articles that The Beacon linked to over the weekend.

If you are taking out a mortgage on a home than you are well informed, or at least should be, about the prevailing interest rates. Most intelligent people will do some level of research into which financial organizations are offering the best or perceived best deal on fees and interest rates.

So it is disappointing to read that McKeon’s spokeswoman said that he was “pretty shocked and angry” to find out that he was listed as a participant in the Countrywide VIP program and is now under investigation by the Congressional Ethics committee. The appearance of denying culpability just prolongs the questions and makes it actually show that there might have been wrong doing where there may not have been.

But isn’t this the pattern of many politicians today; 1) deny involvement or knowledge, angrily claim that you will vigorously defend your name; 2) have a fuzzy memory of the situation but believe something other than the truth and make various excuses while deflecting blame; and finally 3) admit guilt and profusely apologize with your spouse standing stoically by your side.

None of the Congressmen named in the Ethics investigation are accused of wrongdoing in this matter. But claiming that you didn’t know you were participating in a friends & family or VIP loan program is really a stretch to most educated individuals. If you’re getting a discount or VIP treatment you know it!  

It’s not that big of a deal as long as it did not influence any voting on their part in Congress. That is where there could be some problems like former Senator Chris Dodd had with his loan as he was part of the Banking committee.

Buck McKeon is a public official and his wife Patricia is running for public office. They should be held to a higher standard but at the same time there should be no issue with them participating in a family and friends program as long as there is no wrong doing. McKeon should be truthful about it and not deny the participation which is what is tainting this entire story in my view. 

Below is some additional information that has come to light since I first wrote this commentary. The information appears to verify the fact that the McKeon’s knew full well that they were participating in a VIP loan also known as “Friends of Angelo” program.

Politian’s always get into trouble when they lie and try to cover up a situation. Ultimately the facts come out and these elected officials then look like blatant liars. It’s seems to be time for McKeon to come clean on this matter.

Dave Bossert- Commentary

Dave Bossert is a community volunteer who serves on a number of boards and councils. His commentaries represent his own opinions and not necessarily the views of any organization he may be affiliated with or those of the West Ranch Beacon.

UPDATE: Buck did know about the VIP Loan

The wsj.com is reporting that “Countrywide Financial Corp. co-founder Angelo Mozilo may have directed the lender to extend preferential treatment on a 1998 loan to Republican Rep. Howard McKeon of California, according to a letter released Tuesday by a senior House Democrat.” The report goes on to say, “The letter from Rep. Elijah Cummings (D., Md.) said that Countrywide records obtained as part of a congressional investigation of its VIP loan program indicate that Mr. McKeon was given “a significant discount on his VIP loan as a direct result of personal intervention” by Mr. Mozilo, who ran the mortgage giant at the time.”

Bob Haueter commented at the Tuesday nights Republican central committee meeting that the McKeon’s got their $315,000 home loan through Countrywide at “1-point below market and junk fees were waived.” Those waived fees may have resulted in a $500 – $1,000 reduction in closing costs. One point on a $315,000 loan would be approximately $68,000 over 30 years.

Haueter’s comments are consistent with a report in rollcall.com which states; “McKeon appears to have received a Countrywide mortgage for $315,000, and Mozilo instructed the individual handling his loan to “take off 1 point, no garbage fees, approve the loan and make it a no doc,” according to documents reviewed by Cummings.”

The rollcall.com report also indicates that McKeon knew about the Countrywide VIP program also known as the “Friends of Angelo” program. Though McKeon is denying knowing about the VIP program, rollcall.com quoted that “a follow-up letter sent to Chairman McKeon provided forms for him to sign and stated: ‘Thank you for allowing COUNTRYWIDE’s VIP TEAM to assist you with your financing needs on the above referenced property.”

As I wrote on Monday, “So it is disappointing to read that McKeon’s spokeswoman said that he was “pretty shocked and angry” to find out that he was listed as a participant in the Countrywide VIP program and is now under investigation by the Congressional Ethics committee.” Buck and Patricia McKeon knew full well that they were getting a below market rate, special VIP loan and claiming any different is a load of crap.

Honesty is always the best policy and the McKeon’s should know better than to deny knowledge of something that they participated in willingly.

Dave Bossert- Commentary

Dave Bossert is a community volunteer who serves on a number of boards and councils. His commentaries represent his own opinions and not necessarily the views of any organization he may be affiliated with or those of the West Ranch Beacon.