Kerry Finds Some Supporters Among Mortgage Execs

Republicans garner majority of mortgage industry political contributions

August 10, 2004

By PATRICK CROWLEY

But Lewis is hardly alone in the mortgage industry when it comes to doling out cash to politicians.

Mortgage banking executives and brokers are among America’s most prolific contributors to candidates for Congress and president.

Through July 5, people working in mortgage banking gave $4.8 million, according to OpenSecrets.org, which tracks campaign contributions.

Two-thirds of the money went to Republican candidates.

The total could eclipse the 2000 presidential election, when the mortgage banking industry gave $7.7 million. Just over half of the money that year went to GOP candidates.

Since 1999 people identifying themselves as mortgage brokers have given $800,000, according to CampaignMoney.com, which also tracks campaign contributions.

That does not include executives at large banks, financial institutions, mortgage companies and others that make mortgage loans.

“The mortgage broker in today’s world has a growing interest in politics and more importantly influencing laws and regulations,” reads a posting on CampaignMoney.com. “With interest rates at an all time low, mortgage brokers have never seen so much business. Watch for the mortgage broker to contribute more and more as this election cycle heats up.”

It is the presidential race where the money is really flowing.

Some of the biggest names in the mortgage industry are giving money to Bush and, to a lesser extent, his Democratic opponent John Kerry.

Kerry Killinger, the chairman of Seattle-based Washington Mutual — the mortgage giant known as WaMu — has given $2,000 to Bush. So has Henry Silverman, the chairman and president of Cendant Corp., another major player in the mortgage industry; Thomas Hammond, the CEO of Flagstar Bank; and Roland Arnall, the cochairman of Ameriquest Capital.

Ameriquest employees, by the way, have contributed $552,000 to federal candidates this year, the most of any company in the mortgage banking industry, according to OpenSecrets.org. Nearly 90% of the money went to Republicans.

Kerry does enjoy some support from the industry. GMAC Home Services President and CEO John Bearden gave the Democrat $2,000 in April.

But Bush is by the far the choice of Mortgage banking professionals.

OpenSecrets.org reports that so far this year Bush has received $757,198 from people in the industry, compared to just $146,852 for Kerry.

Some contributors play both sides of the political fence, hedging their bets to make sure they go with the winner.

Angelo Mozilo, CEO of Countywide Mortgage, gave $2,000 to Kerry in April of 2003 but $4,000 to Bush between September of last year and January of 2004.

Under federal campaign laws a contribution can give a total of $2,000 to a candidate for each election cycle. One cycle is for the primary, the other the general election, making the maximum contribution allowed at $4,000.

Thomas S. Johnson, chairman of GreenPoint Financial, hasn’t yet given a contribution to Kerry.

But in a recent Wall Street Journal article, he sure sounded like he is about to open his checkbook to the Senator from Massachusetts.

Johnson, a registered independent, lost a son in the 9/11 attacks and even met with Bush at a Rose Garden ceremony commemorating the attacks, the paper reported.

“As you can imagine, as a parent of a son who was lost on 9/11, I was particularly trying to be supportive of the president and the war,” Johnson reportedly said.

But like many Americans Johnson has lost faith and confidence in the decision to invade Iraq. And he is beginning to question the president’s overall policies as well, the paper reported.

“I think to have big tax cuts when a war is going on is wrong economically,” Johnson said. “I’ve benefited tremendously from the Bush tax cuts. But I don’t think it’s right.”

Patrick Crowley is a political reporter and columnist and former business writer for The Cincinnati Enquirer. Email Patrick at: pcrowley@enquirer.com