With the housing crisis leading our economy into a swoon, it has been an ugly year for U.S. homeowners and an unfortunate introduction into the practices of mortgage lenders like Countrywide Financial, the poster child for pushing "subprime" loans that have ultimately put over a million homes at risk of foreclosure.
We documented how the mortgage lending industry appeared to buy off Congress with $210 million in lobbying and campaign contributions, leading to inaction on the subprime lending situation until it became a crisis too big to ignore.
Things appear even sleazier today after Portfolio.com investigated Countrywide and found that at least two U.S. Senators received favorable loan deals, worth several thousand dollars if not tens of thousands, as yet another example of how the industry curried favor with leaders in Congress.
It appears that the National Association of Home Builders, which made headlines in February for refusing to give any more campaign contributions because, NAHB whined, Congress wasn't giving them what they wanted, has now gone back to making campaign contributions.
The association's political action committee, BUILD-PAC, voted unanimously to start giving out money again late last week. A top BUILD-PAC official, Ed Brady, said, "Our message has been heard."
So far this election cycle, BUILD-PAC has raised more $3 million, distributed more than $1.4 million and has about $2 million available to dispense.
Many K Street lobbyists, however, were not pleased that the association had stopped giving out money. The decision showed how closely interest groups tie their donations to the actions they hope lawmakers will take on their behalf -- a connection lobbyists do not want to flaunt for fear of legal and political repercussions.
It says something that the other powerful interest groups are upset at NAHB for making it so obvious that they expect favors when they give campaign contributions.
I, for one, am just relieved that BUILD-PAC -- a lobbying group with over $2 million in the bank and "one of the biggest corporate donors to campaigns" -- had finally had its voice heard. Thank goodness. Back to business as usual, ahem.
(hat tip TPM)
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