An internal "Loan Policy Analysis" of Dodd's mortgages shows that Countrywide's underwriting rules called for an interest rate of 4.875 percent on both loans, with fees equal to three-eighths of a point on one loan, and a quarter-point on the other. A point is equal to 1 percent of the borrowed amount, and for both mortgages, those up-front fees would have totaled about $2,500.

But the computerized record includes a second column showing what Dodd and his wife, Jackie Clegg, were actually charged. In that column, the points had been eliminated.

According to investigators, Countrywide's computer system required a manual override to implement loan terms more favorable than the company's standard underwriting policy. In Dodd's computer files, in a column labeled "Reason For Override," is the designation: "CMD Approved" — which investigators say is shorthand for approval by a Countrywide managing director. Similar overrides are noted in loan documents for many other VIPs, investigators said.

Last month, Dodd allowed reporters to review more than 100 pages of mortgage documents for his homes in East Haddam and Washington, D.C., but did not permit them to make copies. A spokesman for Dodd said that the Loan Policy Analysis was among the records reporters were permitted to review. But none apparently recognized its potential significance.

Dodd also announced last month that he would refinance the loans with another lender.

The report released Thursday concludes that officials at Countrywide gave special loan deals to thousands of VIPs — from Washington politicians to Hollywood celebrities — as part of an aggressive campaign to curry favor and extend the company's influence.

From U.S. senators to a mayor in Montana and former TV sidekick Ed McMahon, Countrywide gave breaks to the well-connected and the well-known, often coolly discussing in e-mail exchanges whether a customer's political juice justified the discount.

In an internal e-mail, a Countrywide managing director hesitates to cut a break for the mayor of Billings, Mont. "I'm usually in favor of settling on the side of the borrower with political influence," the official wrote, before concluding that the money at stake "has the potential of being a greater number than the Mayor of Billings Montana influence."

But a higher-up, noting the mayor's leadership role with the U.S. Conference of Mayors, approved the discount.

It was an easier call when loan officers learned that an applicant was the brother-in-law of an aide to a senior member of the House Financial Services Committee.

"Put this one in a 'moderate VIP' status," a Countrywide executive instructed in an e-mail. "The Hill staffer is very important to us."

In addition to politicians and government officials, other prominent Countrywide clients given special deals, according to the report, included actors Roy Scheider, Stanley Tucci and Uma Thurman; a deputy in the Malibu, Calif., sheriff's department; and Margaret Warner, a correspondent for "The NewsHour with Jim Lehrer."

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Related topic galleries: Ethics, East Haddam, Mortgages, Values, Big 3 Auto Bailout, Consumer Electronics Industry, Employees
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