Conrad lives in a conservative, coal producing, state. He has to act in accordance with the realities of the state he is in. He gains more support by going against Washington. Besides, the Countrywide mortgage scandal is knocking loudly at his door.
I'd put more weight on the realities of a coal-producing state than on any chance of the Countrywide scandal ever making a dent -- unless they can throw him under the bus without damaging the rest of the gang.