Realtors’ big cash support of Kanjo draws fire

The non-partisan National Association of Realtors Political Action Committee has spent more money on political advertisements and mailings this month for U.S. Rep. Paul E. Kankorski, D-Nanticoke, than any other member of Congress, according to federal election filings.

Along with other donations made to his campaign through the years from industries Kanjorski has sway over based on his committee assignments, the contributions have caused the National Republican Congressional Committee and Kanjorski’s congressional opponent to question his ethics.

Kanjorski, a 12-term incumbent, faces a challenge from Republican Hazleton Mayor Lou Barletta on Nov. 4.

According to Federal Election Commission filings, the Realtors’ PAC spent $382,500 in September on advertising in support of Kanjorski. The PAC spent another $60,000 on radio ads and $220,000 on direct mailings for Kanjorski.

The Realtors’ PAC has spent $888,908 the past two months touting Kanjorski. That investment is second this election cycle only to the $990,000 the PAC spent in April and May on failed New Mexico congressional candidate Monty Newman, a Republican who is a licensed Realtor.

Mary Trupo, public issues director for the National Association of Realtors, said that group is proud to support Kanjorski and called him “a strong advocate and a real friend for home ownership rights.”

She said her association reviews congressional candidates based on several factors, including their committee assignments, history of supporting or opposing real estate-related bills and actions in proposing legislation impacting the industry. Trupo said in all cases, Kanjorski has done right by the industry.

Trupo said Kanjorski has kept banks out of real estate brokerage and management, supported Federal Housing Administration reform and federal incentive programs including tax credits for first-time home buyers.

“He has definitely stepped up to the plate for Realtors and the housing industry,” Trupo said.

Kanjorski sits on several House committees that could influence financial markets. He’s a senior member on the Financial Services Committee and chairman of the Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises.

“Paul Kanjorski chairs the very subcommittee that was supposed to be providing oversight into the financial markets, but apparently he was too busy doing the handiwork for the predatory-lending industry to care,” said NRCC press secretary Ken Spain.

Spain said the contributions were an example of how Kanjorski’s “dealings continue to occur at the expense of his Pennsylvania constituents.”

Kanjorski’s come under fire from the Barletta campaign too, for contributions he’s received from housing and financial services institutions and their PACs.

He’s received $96,000 in campaign donations from mortgage buyers Fannie Mae and Freddie Mac since 1989 – ranking him seventh among all members of Congress to accept donations from the two firms. The federal government recently took control of the two government-sponsored mortgage lenders after financial woes essentially bankrupted them.

Barletta for Congress Campaign Manager Vince Galko jumped on the mounting financial support Kanjorski’s received from PACs in the housing and financial industries, both of which are being partially blamed for the struggling American economy.

“As Congress was seeing the early signs of an oncoming fiscal crisis, Paul Kanjorski, chair of Financial Services subcommittee, was accepting hundreds of thousands of dollars from sub-prime lenders, the Realtors PAC, and (other) financial institutions,” Galko said. “Now Americans are paying the price for his pay-to-play antics. The best-case scenario: Paul Kanjorski was asleep at the wheel; the worst case: he took the money and looked the other way . . .”

On March 19, 2005, Kanjorski and U.S. Rep. Bob Ney, R-Ohio, introduced the Responsible Lending Act. That proposal was criticized at the time by The Center for Responsible Lending, which said, “The Ney and Kanjorski bill would fail to protect borrowers from predatory lending.” Competing bills were introduced, Kanjorski said, but no compromise could be agreed to and his bill never came up for a vote.

The bill was introduced four days after Kanjorski received a $5,000 contribution from New Century Financial PAC, the campaign contribution arm of the now-bankrupt New Century Financial Corp. According to federal filings, between 2002 and 2007, Pennsylvanians for Kanjorski accepted $22,000 in campaign contributions from the New Century Financial Corporation PAC/ New Century Financial PAC.

Last week, Kanjorski said the bill would have modified underwriting practices, enhanced housing counseling services, improved appraisal oversight, bettered mortgage servicing, and established a system for licensing and overseeing mortgage brokers. Galko disputed that analysis.

“Now after accepting their money and after introducing the Ney-Kanjorski legislation, which stripped away safeguards for consumers and the economy, Paul Kanjorski gets paid back with millions of dollars in campaign funds and advertisements. You have to stop and ask, why is this Washington, D.C., special interest group spending a million dollars to keep Paul Kanjorski in Congress? ” Galko said.

Kanjorski for Congress spokesman Adam Benson took issue with accusations campaign donors have influence on Kanjorski’s congressional decisions.

“When Congressman Kanjorski votes, he looks at the merits of the measure and the interests of the 11th District. He is not influenced by outside actors.

Financial, insurance contributors

In 2008, according to FEC filings, Countrywide Financial Corp. PAC gave Paul E. Kanjorski’s campaign $5,000; Mortgage Bankers Association PAC gave $4,500. Kanjorski has received donations this year from PACs representing companies and organizations including Axa Equitable Life Insurance, $5,000; LandAmerica Financial Group, $2,500; Liberty Mutual Insurance Co., $1,500; National Apartment Association, $5,000; National Association of Insurance and Financial Advisors National Leadership, $5,000; National Multi-Housing Council, $5,000; and NYSE Group Inc, $5,000.

He also received individual donations of $2,300 this year from officials at companies including Bear Stearns, Promontory Financial Group and SAC Capital Advisors.

The only financial group that’s donated to the Lou Barletta campaign this year, according to FEC filings through July 1, is the Pennsylvania Bankers Association Public Affairs Committee, which gave him $2,500.

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NRCC, Barletta’s team call into question ethics. Kanjorski rep: Donors not policymakers.

Financial, insurance contributors

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