Washington » U.S. Postmaster General John Potter, proposing a cut back to five-day home delivery because of growing costs, got a sweetheart home mortgage six years ago because of his position, Rep. Jason Chaffetz, R-Utah, charged Wednesday.
Chaffetz presented e-mails at a House oversight subcommittee hearing showing Countrywide executives offered Potter a 1-percent discount on his home loan and declined to charge him standard fees.
The mortgage company has been criticized for doling out below-market loan rates to members of Congress and staffers as a way to curry influence, a point that Chaffetz raised to Potter as he faced a congressional panel wary of his deep cuts at the postal service.
Chaffetz, who is the ranking Republican on the Oversight and Government Reforms subcommittee dealing with the postal service, said before Congress delves into the operations at the agency, they should first look at the integrity of its leader. Chaffetz said the postal service's inspector general has referred the investigation of the home loan to the U.S. Attorney's Office.
Potter said he did accept a loan from Countrywide, and that he did so at the suggestion of former Fannie Mae Vice Chairman Jim Johnson, who also reportedly received a discounted mortgage.
"I believe the terms of my loan were the result of a good credit history and good financial" standing, Potter told the subcommittee, noting that he paid half the new house cost in cash.
Potter continued that the discussions "between myself and Countrywide were about the loan" and had nothing to do with his position as head of the postal service.
Chaffetz pointed to a Republican staff report, released last week, showing e-mails by Countrywide executives mentioning Potter as a loan recipient.
"Coincidentally, [Countrywide CEO] Angelo [Mozilo] just ran into Mr. Jack Potter (Postmaster General) and Mr. Potter will be calling on Friday," one company aide wrote to another. "Angelo wanted to make certain you were given a heads up and to 'let Mr. Potter know we/CW will take care of it;' also, per Angelo 'take one point off and no extra fees.'"
Potter, who has suggested cutting home delivery on Monday or Tuesday as a way to curb losses due to a decline in mail, has been under fire for earning a reported $850,000 a year in compensation -- including a bonus, retirement pay and a security detail.
Potter disputes that figure and notes that he makes $263,000 a year as congressionally mandated and most of the other compensation is related to his service as a career employee.
While Chaffetz admits his questions about the postmaster's home loan is a "distraction" from the close look the postal service needs, he says that "when there's a question about leadership's integrity, you have to ask it. You have to dive into it."
