No Friends of Angelo

Two Republican members of Congress are pressing for reform in the wake of the revelations by Portfolio.com that Senators and others received loans on favorable terms from Countrywide Financial.

Representative Mark Souder of Indiana, said today that hiding mortgage information could lead to corruption. He is planning to introduce what he calls the "Financial Disclosure Integrity Act," to make mortgage information disclosure mandatory for lawmakers, judges and executive branch officials.

Souder and Representative Darrell Issa of California, have written to Representative Henry Waxman, the Democratic chairman of the Committee on Oversight and Government Reform, reiterating a request for an investigation of Countrywide's relationship with members of Congress. They complained that Waxman had made "no substantive response." to their first request last month.

"Given the fact that Congress is actively considering bailing out Fannie Mae, Freddie Mac, Countrywide, and other lenders it is essential that Congress investigate to determine the extent that public officials and staff have been compromised by improper gifts," they wrote.

"If you have reasons for not investigating this matter, other than the involvement of prominent Democrats, we would appreciate it if you would share them with us in your response."

A call to Waxman's office was not immediately returned.

Countrywide "V.I.P." loan program gave discounts on loans for two Democratic senators, Christopher Dodd of Connecticut and Kent Conrad of North Dakota. A number of judges, former top government executives and other lawmakers were also given special mortgage treatment, according to article by Dan Golden in the current issue of Condé Nast Portfolio.

There has been at least one other effort in Congress or greater disclosure. John Cornyn, the Texas Republican who heads the Senate Ethics Committee, and Senator Barbara Boxer of California, last month offered an amendment to a sweeping housing bill to require senators to report the terms of their home mortgages.

Souder's bill takes it a step further. His bill would require officials in the executive, judicial, and legislative branch to open up the books on their mortgages. But his bill does not require disclosure of discount points and free float-downs -- frequent perks of the Countrywide "V.I.P." program.

And is it unlikely that Congress would have an opportunity to consider it before its August recess, or even this year. For one, three separate committees in the House -- Oversight, Judiciary, and House Administration -- would have to review the bill.

Souder said he is setting an example by disclosing his personal mortgage information (rental property is already covered by current disclosure requirements). His Fort Wayne, Indiana, home, on which he owes $75,315.55 over the next eight years, has a fixed-rate mortgage from Citigroup for 6.875 percent - a much higher rate than the 4.25 percent Dodd paid on his Washington residence, and 4.5 percent on his Connecticut home.

Elizabeth Olson