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#######  FOR IMMEDIATE RELEASE CONTACT: Debbee Keller

June 19, 2008 (202) 225-3484

**Hensarling Demands Congressional Investigation**

**for Sweetheart Mortgage Deals**

WASHINGTON, D.C. -- U.S. Congressman Jeb Hensarling (TX-05) has demanded
a congressional investigation after allegations surfaced that Members of
Congress received special, preferential treatment on their home mortgage
loans.

Last week, the *Washington Post* and *Wall Street Journal* reported that
Senate Banking Committee Chairman Dodd and Senate Budget Committee
Chairman Conrad allegedly received preferential treatment on multiple
mortgage loans through an elite V.I.P. program at Countrywide Financial.
Reports indicate that the program, known as "Friends of Angelo," was
designed to give below-market discounts on interest rate points, waive
fees, and provide unique perks for government officials who were deemed
"friends" of Countrywide's chairman and chief executive office, Angelo
Mozilo.

According to these same news reports, the preferential treatment
resulted in tens of thousands of dollars in savings for some of the most
powerful lawmakers in Congress. The impact of these allegations is
exacerbated by the fact that Congress is currently considering a \$300
billion bill that would bailout many large mortgage lenders from some of
their own bad financial decisions. Senator Dodd is the chief architect
of the Senate's version of this legislation.

Congressman Hensarling and twenty-seven of his colleagues demanded that
Speaker Nancy Pelosi begin an immediate investigation into these
allegations to determine the facts surrounding the matter and what must
be done to prevent other Members of Congress from seeking or receiving
such preferential treatment in the future.

In a letter to Speaker Pelosi, Hensarling wrote:

"**At a time when millions of Americans are struggling to repay their
mortgage debts while coping with \$4/gallon gasoline and soaring food
prices, they will be outraged to learn that some Members of Congress may
have personally profited from their official positions through secret
sweetheart deals on their mortgages.**

**"Although each allegation is individually alarming, when viewed
together a disturbing pattern appears to emerge indicating that at least
one large lender was making loans to elected officials that average,
hardworking Americans would and could never receive.**

**"It is extremely troubling that these revelations of preferential
treatment have emerged at a time when Congress is considering multiple
legislative proposals affecting the mortgage lending industry. These
proposals, if enacted, could result in billions of dollars of financial
savings for some lenders while exposing taxpayers to billions of dollars
of risk.**

**"Madam speaker, on January 18, 2006, you announced your commitment to
creating the 'most open and honest Congress in history' and last year
you reiterated your dedication to end the 'corruption prevailing through
all levels of government in your *New Direction for America* outline.**

**"We share your dedication to ensuring the American people have a
government they can trust. That is why we are writing to demand that you
commence Congressional hearings to determine the facts surrounding the
matter and what must be done to prevent other Members of Congress from
seeking or receiving such preferential treatment in the future."**

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