Williams countered that Tooley “will be mayor of one of Montana’s largest cities until 2005” and is “also very likely to hit the speaking circuit.”

Tooley says he doesn’t remember how the issue was resolved, but, he says, it “worked out to our satisfaction.”

Perhaps countrywide’s most troubling V.I.P. loans went to Democratic Senators Dodd and Conrad. As chairman of the Senate Banking Committee, Dodd is at the forefront of efforts to remedy the housing crisis. In May, he introduced a foreclosure-rescue bill that would extend up to $300 billion in government-backed loans to struggling borrowers if lenders forgave a portion of their debt. Conrad chairs the taxation subcommittee of the Senate Finance Committee, which often considers proposals affecting Countrywide, such as tax credits for first-time or low-income homebuyers.

Feinberg was dismayed to watch a cable-television interview in August 2007 in which Dodd called for predatory lenders to face criminal charges. Feinberg, who handled four loans for the Connecticut Democrat in 2002 and 2003, finds Dodd’s position “hypocritical.”

On June 12, Condé Nast Portfolio revealed those loans at an inopportune time for Dodd. The report, published on Portfolio.com, dampened speculation that Dodd might become Barack Obama’s running mate. Not only had Obama attacked Countrywide for “infecting the economy,” but James Johnson, who was advising the candidate on selecting a vice president, had resigned from the campaign after the Wall Street Journal reported on his own V.I.P. loans. Dodd’s involvement in the Countrywide scandal complicated his efforts to shepherd the housing-reform package through Congress.

On June 13, Dodd issued a statement that he did not know about the favorable treatment and “did not seek or expect any.” Four days later, he reversed himself, acknowledging that he knew Countrywide had placed him in a V.I.P. program. He said that he and his wife “assumed” it was “more of a courtesy” and that he had “negotiated a mortgage at a competitive rate, a prevailing rate.”

However, Dodd received discounts on at least two of the transactions, Countrywide documents show. In 2003, he borrowed $506,000 to refinance his Washington townhouse and $275,042 to refinance a home in East Haddam, Connecticut. When he applied, Countrywide waived three-eighths of a point, or about $2,000, on the first loan, and one-fourth of a point, or about $700, on the second. With that pricing built in, the interest rate on the loans, originally 4.875 percent, was reduced to 4.25 percent on the Washington home and 4.5 percent on the Connecticut property.

Feinberg says that he spoke to the senator once or twice and frequently emailed or talked to Jackie Clegg, Dodd’s wife. Clegg says that she can’t recall whom she communicated with at Countrywide and that two other banks offered comparable rates.

Like Dodd, Conrad was slow to acknowledge his witting participation in the V.I.P. program. Initially, the North Dakota Democrat said in a statement that he had “no way of knowing” how Countrywide categorized his loan and that he “never asked for, expected, or was aware of any special treatment.” But during an interview, he acknowledges, “I knew I was at a V.I.P.-employees unit. I thought that meant I was getting good service. Maybe I was naive.”

In March 2004, Conrad wanted to refinance his vacation home. The senator, who says he felt cheated by a mortgage broker during a prior refinancing, consulted James Johnson, an old friend who, he says, “knew more about mortgages than anybody I know.” When he called Johnson, the former Fannie Mae C.E.O. said, “Kent, I’m sitting with a guy you should talk to,” and handed the phone to Mozilo, who was glad to help.

Feinberg emailed Mozilo on March 17: “I have spoken with Kent Conrad and he wants to refinance to a 15-year mortgage. The rate we are looking at is a 4.875% and it has a one-point charge.” Mozilo replied, “Take off one point,” and Feinberg complied. Since Conrad borrowed $1.07 million, one point equaled $10,700.

A month later, Conrad was back in touch, seeking to refinance an eight-unit apartment building that he and his brothers owned in Bismarck, North Dakota. Since Countrywide normally made loans only for buildings of four or fewer units, Feinberg consulted Mozilo. “I did advise [Conrad] that I would check with you first,” Feinberg wrote.

“Please speak directly to Dave Spector,” Mozilo replied, referring to the senior managing director for secondary marketing. “See if he can make an exception due to the fact that the borrower is a Senator.” Spector then authorized the loan, according to emails.

Spector, who left Countrywide in 2006, says he can’t recall the loan. If he did approve it, he says, it was because he believed that it could be sold to investors, not because of Conrad’s prominence.

After being apprised of the emails, Conrad concedes he knew that the North Dakota loan violated company policy. The exception “seemed like a total nothing,” he says. “I could have gotten that loan any day of the week at home.” Conrad tried to make amends by giving $10,700 to charity and paying off the debt on the eight-unit property.