We at LegiStorm were fascinated to read a story in Politico this week which polled the offices of all senators to find out where they got their mortgages, especially by the answer of the former head of the Senate banking committee, Sen. Richard Shelby (R-Ala.).
The Politico survey comes after documents reveal that two senators, Chris Dodd (D-Conn.) and Kent Conrad (D-N.D.), received preferential treatment on their mortgages from Countrywide after requesting help from the head of the company. So Politico surveyed senators to find out how others received their mortgages. So far, 15 senators have not bothered to answer the poll.
But we were particularly intrigued by the response of Shelby, who headed the Senate Banking, House and Urban Affairs Committee and is still its ranking member. According to Politico, Shelby responded that he has no mortgages on his two homes. In fact, LegiStorm's data indicates that Shelby has a $1-$5 million mortgage with Wells Fargo Bank.
The New York Times values that loan, originally placed with Reilly Mortgage, at $5 million. The mortgage is not on his home but on an apartment complex he owns in Tuscaloosa, Ala. It's not clear whether the mortgage, taken out in 2002 at 6 percent interest, was market rate or not. We will leave that for the experts to determine.
However, our financial disclosure data - covering members and staff alike - can shed some light on this mortgage question. Unfortunately, however, the Congress has exempted the disclosure of mortgages on primary homes, meaning that the vast majority of mortgages go unreported. In light of the brewing scandal over the large mortgage gifts provided to senators, this lack of disclosure would appear to be a glaring oversight.
