Obama Got Discount On Home Loan

Washington Post: Campaign Defends Lower Rate For 2005 Mortgage As Lender Competition For Business

(Washingtonpost.com)  This story was written by Joe Stephens.

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Shortly after joining the U.S. Senate and while enjoying a surge in income, Barack Obama bought a $1.65 million restored Georgian mansion in an upscale Chicago neighborhood. To finance the purchase, he secured a $1.32 million loan from Northern Trust in Illinois.

The freshman Democratic senator received a discount. He locked in an interest rate of 5.625 percent on the 30-year fixed-rate mortgage, below the average for such loans at the time in Chicago. The loan was unusually large, known in banker lingo as a "super super jumbo." Obama paid no origination fee or discount points, as some consumers do to reduce their interest rates.

Compared with the average terms offered at the time in Chicago, Obama's rate could have saved him more than $300 per month.

Obama spokesman Ben LaBolt said the rate was adjusted to account for a competing offer from another lender and other factors. "The Obamas have since had as much as $3 million invested through Northern Trust," he said in a statement.

Modest adjustments in mortgage rates are common among financial institutions as they compete for business or develop relationships with wealthy families. But amid a national housing crisis, news of discounts offered to Sens. Christopher J. Dodd (D-Conn.), chairman of the banking committee, and Kent Conrad (D-N.D) by another lender, Countrywide Financial, has brought new scrutiny to the practice and has resulted in a preliminary Senate ethics committee inquiry into the Dodd and Conrad loans.

Within Obama's presidential campaign organization, former Fannie Mae chief executive James A. Johnson resigned abruptly as head of the vice presidential search committee after his favorable Countrywide loan became public.

Driving the recent debate is concern that public officials, knowingly or unknowingly, may receive special treatment from lenders and that the discounts could constitute gifts that are prohibited by law.

"The real question is: Were congressmen getting unique treatment that others weren't getting?" associate law professor Adam J. Levitin, a credit specialist at Georgetown University Law Center, said about the Countrywide loans. "Do they do business like that for people who are not congressmen? If they don't, that's a problem."

Under financial disclosure rules, members of Congress are not obliged to disclose debts owed to financial institutions for personal residences. Names of lenders and rates paid on mortgages sometimes can be determined by scrutinizing property transaction records. In March, in response to media questions, Obama posted on his campaign Web site records related to his house purchase.

Last week, during debate on a bill to help homeowners caught in the foreclosure crisis, some members of the Senate ethics committee proposed an amendment to require that lawmakers disclose their mortgage lenders and loan terms in annual financial forms starting next year.

In Obama's case, he received a lower rate than the average offered at the time in Chicago for similarly structured jumbo loans. He secured his final mortgage commitment on June 8, 2005, and during that week, rates on similar loans for which information is available averaged 5.93 percent, according to HSH Associates, which surveys lenders. Another survey firm, Bankrate.com, placed the average at 6 percent.

"It's certainly safe to say that this borrower did better than average," said Keith Gumbinger, an HSH vice president, noting that consumer rates vary widely. "It's a good deal."

The Obama campaign called the rate "consistent with Northern Trust policies, and it reflected the base rate set for that period discounted to address the competition for the account and other opportunities, such as personal financial services, that the relationship would bring to Northern Trust."

When the Obamas secured the loan, their income had risen dramatically. Obama assumed his Senate seat in January 2005, with an annual salary of $162,100. That same month, Random House agreed to reissue an Obama memoir, for which it originally paid $40,000, as part of a $2.27 million deal that included two future nonfiction books and a children's book.

Around the same time, the University of Chicago Hospitals promoted Michelle Obama to a vice president and more than doubled her pay, to $317,000.

The couple wanted to step up from their $415,000 condo. They chose a house with six bedrooms, four fireplaces, a four-car garage and 5 1/2 baths, including a double steam shower and a marble powder room. It had a wine cellar, a music room, a library, a solarium, beveled glass doors and a granite-floored kitchen.

The Obamas had no prior relationship with Northern Trust when they applied for the loan. They received an oral commitment on Feb. 4, 2005, and locked in the rate of 5.625 percent, the campaign said. On that date, HSH data show, the average rate in Chicago for a 30-year fixed-rate jumbo loan with no points was about 5.94 percent.

Jumbo loans are for amounts up to $650,000, but the Obamas' $1.32 million loan was so large that few comparables are available. Mortgage specialists say that many high-end buyers pay cash.

Obama's Republican opponent, Sen. John McCain, has no mortgages on properties he owns with his wife, Cindy, who is a multimillionaire.

Unlike Countrywide, where leaked internal e-mails documented a special discount program for friends of chief executive Angelo Mozilo, Northern Trust says it has no formal program to provide discounts to public officials. Loan officers may consider a borrower's occupation when establishing an interest rate, the bank said.

"A person's occupation and salary are two factors; I would expect those are two things we would take into consideration," said Northern Trust Vice President John O'Connell. "That would apply to anyone seeking to get a mortgage at Northern Trust." He added that the rates offered to Obama were "consistent with internal Northern Trust rates at that time."

"The bottom line is, this was a business proposition for us," he said. "Our business model is to service and pursue successful individuals, families and institutions."

O'Connell referred additional questions to the campaign.

Since 1990, Northern Trust employees have donated more than $739,000 to federal campaigns, including $71,000 to Obama, according to the Center for Responsive Politics.

Obama's house purchase has been a source o controversy. In 2006, the Chicago Tribune reported that on the day of the closing, the wife of Obama's longtime friend and fundraiser Antoin "Tony" Rezko closed on an adjoining lot that had been the estate's side yard.

The Obamas bought the house for $300,000 less than the asking price of $1.95 million, while Rezko's wife, Rita, bought the neighboring lot for the full asking price of $625,000. Rita Rezko later sold a portion of the undeveloped lot to the Obamas, enlarging the senator's yard.

Tony Rezko already had been linked to a grand jury investigation involving public corruption. Last month, he was convicted of 16 counts in an influence-peddling scheme that reached the highest levels of Illinois state government.

[wothah]

What is everybody grapping about obama home loan, he only got half of what he was trying to get, when they double check his loan papers they seen that his Mother was White, that is when he went to the revving wright an told him that he was being treated un-fair-ary an there only comment was GD America for this. Just wait till he gets to be Comander in Chief, then you will here him GD-ing the Big Red Button an saying other countrys names, an sending 2,500,000 troops in stead of 250,000.

[jacksonian7]

"The latest NEWSWEEK Poll shows OBAMA with a 15-point lead over McCain." --Posted by frootloop47

Depends upon the poll you like. Some polls show them neck and neck.

Using the same poll you''re mentioning, at this point 4 years ago, John Kerry had a 15 point lead on George Bush. 8 years ago, Gore had a similar lead. In 1988, Michael Dukakis had a 20 point lead in July. In 1992, the polls suggested Ross Perot had a real chance. (Right.)

All polls are biased. Fortunately, actual voting is what matters.

[frootloop47]

The latest NEWSWEEK Poll shows OBAMA with a 15-point lead over McCain.

[dante805]

Just another Politician - slick talking lawyer who says he is different from the average POL on the hill - seems like he got the same unfair treatment like Chris Dodd (DEM) did. Must be his Rezko relationship that helped him secure a low interest loan. Didnt he and michelle say they were broke and barley making ends meet. Yeah right - Millionaires just like every other Lawyer. This scandal should do more damage and finally make the avg Joe realize he is an elitist - a fraud - a broken promises guy. Dont fall for his slick salesman campaign.

[rowdywicca]

Tony Rezko already had been linked to a grand jury investigation involving public corruption. Last month, he was convicted of 16 counts in an influence-peddling scheme that reached the highest levels of Illinois state government.

So Obama went wow! I''''''''''''''''ve gotta get this guy and his money to help me buy a house quick before he goes to jail!

He promised me that house! I did what he asked me to do...I want my house before he''''''''s hauled away for FRAUD!

[hotrod2008-2009]

Ya know what''s really sad? There''s nothing good to say about either of the big party puppets. Not one good thing. The American people are left with a vacuum. No choice at all. No hope, no choice, just more of the same ripoff politics and politicians sending this country straight to he//. Now that''s the truth. Anyone have any ideas on how to straighten this mess out? It''s going to take more than a vote every 4 years. We need something better than what''s on offer in 2008. How sad. At the end of the day, they''re all lying hypocrites with their hands in the people''s pockets and give nothing back. This country is ripe for a revolution....

[omaar-101]

John Mccain: Is a Career Crooked & Elitist Politician and You are Not Worried about His Sleezy A$$ !!!

How`s That for being `Radical`

[omaar-101]

Webb GI Bill Passes Senate, McCain Skips Vote !!

Note: John Mccain, What A Patriot, What A Hero, what an American Vet !!

Obama & Webb: What Radical Liberals...Ha !!!

Irony: That Lying George Bush Jr. gave Credit to John McCain, knowing Full Well, he had Nothing to do with the Bill or it`s Passing !!

http://www.huffingtonpost.com/2008/06/30/bush-wrongly-credits-mcca_n_110024.html

Senate Republicans have broken with President Bush to help Democrats add support for veterans and the unemployed to a bill paying for another year of the Iraq and Afghanistan wars.

The 75-22 vote also added billions of dollars in other domestic funds such as heating subsidies for the poor and money for fighting wildfires to the $165 billion for the military operations overseas.

...The huge tally in the Senate was driven by $15.6 billion over two years to extend unemployment benefits by 13 weeks and more than $50 billion over the upcoming decade to provide returning Iraq war veterans with sharply increased college aid.


Both Sens. Obama and Clinton voted in (Favor of the Bill.)

Note: Sen. McCain Skipped the vote

[jack3213]

Obama is radical liberal pretending to be in the middle and promising Change he has no business doing- since he is not experianced in so many areas of life nor a true American patriot. For those who support a church going elitist hating the USA for 20 years be aware Obama is nothing more than a true hypocrit. If you worked hard all your life, for example, and happen to be rich you SHOULD NOT be obligated to give to the poor, as he wants, the poor need to work hard, too, like all the rest of us. You might not get rich, in this life, but you need to live with honorable American standards.

MCCAIN WILL WIN.

[omaar-101]

Posted by Jacksonian7: "Barry, (which is what he called himself to fit in at school), should just admit that he is not representing change at all. He''''''''s just another crooked politician"
-----------------------


Ans: Oh Yeah, John McCain is a Straight and Narrow, Honest John of the Political World...Bull-Spit !!!

John Mccain is a Career Crooked & Elitist Politician and You are Not Worried about His Sleezy A$$ !!!

[omaar-101]

Oh this Mccain is Pure as the Driven Snow, I mean Pure as the Driven Sludge, that is !!!

Note: While Cindy McCain, her dependent children and the trusts and companies they control made as much as $29 million - and likely substantially more - from her family%u2019s business interests from 2004 through last year, data from the Internal Revenue Service, the U.S. Senate, U.S. Office of Government Ethics and the Center for Responsive Politics also reveals that they spent $11 million purchasing five condominiums for the family, hired additional household help and racked up progressively larger credit cards bills almost every year.

Their credit card bills peaked between January 2007 and May 2008, during which time Cindy McCain charged as much as $500,000 in a single month on one American Express card and $250,000 on another, while one of their two dependent children had an AmEx card with a monthly balance as large as $50,000.

[omaar-101]

Yet it is Barack & Michelle Obama who are the `Elitist` Though the Obama`s just Recently Paid Off Their Student Loans !!!


Big Note: During the 2004 presidential campaign, Teresa Heinz Kerry, whose fortune was estimated to be worth more than $750 million, eventually released comparably limited information about her finances after repeated demands from Republicans who asserted the public%u2019s right to know because they said her finances were intertwined with those of her husband%u2019s presidential campaign.

The Kerry campaign had benefited from a $6.4 million personal loan Sen. Kerry secured using, as collateral, equity in a Boston townhouse the couple jointly owned.

Likewise, John McCain%u2019s presidential campaign benefited from Cindy McCain%u2019s fortune, using a `Legal Loophole` to travel the country in a Jet Owned by her company for Cut-Rate Fares.

Real Elitist: While Cindy McCain, her dependent children and the trusts and companies they control made as much as $29 million - and likely substantially more - from her family%u2019s business interests from 2004 through last year, data from the Internal Revenue Service, the U.S. Senate, U.S. Office of Government Ethics and the Center for Responsive Politics also reveals that they spent $11 million purchasing five condominiums for the family, hired additional household help and racked up progressively larger credit cards bills almost every year.

[omaar-101]

The Obamas had no prior relationship with Northern Trust when they applied for the loan. They received an oral commitment on Feb. 4, 2005, and locked in the rate of (5.625 percent), the campaign said. On that date, HSH data show, the Average RATE in Chicago for a 30-year fixed-rate jumbo loan with no points was about (5.94 percent).

Oh what a STEAL of a DEAL...Puh-Lease !!!

"The bottom line is, this was a business proposition for us," he said. "Our business model is to service and pursue successful individuals, families and institutions.

Great Deal...Obama... Great Deal !!

THAN THE ASKING PRICE of $1.95 million, while Rezko`s wife, Rita, bought the neighboring lot for the full asking price of $625,000. Rita Rezko later sold a portion of the undeveloped lot to the Obamas, enlarging the senator`s yard.

[omaar-101]

Yet it is Barack & Michelle Obama who are the `Elitist` Though the Obama`s just Recently Paid Off Their Student Loans !!!


Big Note: During the 2004 presidential campaign, Teresa Heinz Kerry, whose fortune was estimated to be worth more than $750 million, eventually released comparably limited information about her finances after repeated demands from Republicans who asserted the public%u2019s right to know because they said her finances were intertwined with those of her husband%u2019s presidential campaign.

The Kerry campaign had benefited from a $6.4 million personal loan Sen. Kerry secured using, as collateral, equity in a Boston townhouse the couple jointly owned.

Likewise, John McCain%u2019s presidential campaign benefited from Cindy McCain%u2019s fortune, using a `Legal Loophole` to travel the country in a Jet Owned by her company for Cut-Rate Fares.

Real Elitist: While Cindy McCain, her dependent children and the trusts and companies they control made as much as $29 million - and likely substantially more - from her family%u2019s business interests from 2004 through last year, data from the Internal Revenue Service, the U.S. Senate, U.S. Office of Government Ethics and the Center for Responsive Politics also reveals that they spent $11 million purchasing five condominiums for the family, hired additional household help and racked up progressively larger credit cards bills almost every year.

[omaar-101]

Yet it is Barack & Michelle Obama who are the `Elitist` Though the Obama`s just Recently Paid Off Their Student Loans !!!


Big Note: During the 2004 presidential campaign, Teresa Heinz Kerry, whose fortune was estimated to be worth more than $750 million, eventually released comparably limited information about her finances after repeated demands from Republicans who asserted the public%u2019s right to know because they said her finances were intertwined with those of her husband%u2019s presidential campaign.

The Kerry campaign had benefited from a $6.4 million personal loan Sen. Kerry secured using, as collateral, equity in a Boston townhouse the couple jointly owned.

Likewise, John McCain%u2019s presidential campaign benefited from Cindy McCain%u2019s fortune, using a `Legal Loophole` to travel the country in a Jet Owned by her company for Cut-Rate Fares.

Real Elitist: While Cindy McCain, her dependent children and the trusts and companies they control made as much as $29 million - and likely substantially more - from her family%u2019s business interests from 2004 through last year, data from the Internal Revenue Service, the U.S. Senate, U.S. Office of Government Ethics and the Center for Responsive Politics also reveals that they spent $11 million purchasing five condominiums for the family, hired additional household help and racked up progressively larger credit cards bills almost every year.

[trishab4]

CBS: Obama Got Discount On Home Loan

-LMAO, I''d say the Obamas got sccrewwed on this one. Jut can''t believe it. We negotiated our loan at fixed 5.25% for 30 years! It was in dec. 2004 though!

[omaar-101]

The Obamas had no prior relationship with Northern Trust when they applied for the loan. They received an oral commitment on Feb. 4, 2005, and locked in the rate of (5.625 percent), the campaign said. On that date, HSH data show, the Average RATE in Chicago for a 30-year fixed-rate jumbo loan with no points was about (5.94 percent).

Oh what a STEAL of a DEAL...Puh-Lease !!!

"The bottom line is, this was a business proposition for us," he said. "Our business model is to service and pursue successful individuals, families and institutions.

Great Deal...Obama... Great Deal !!

"The Obamas bought the house for $300,000 less than the asking price of $1.95 million, while Rezko''''s wife, Rita, bought the neighboring lot for the full asking price of $625,000. Rita Rezko later sold a portion of the undeveloped lot to the Obamas, enlarging the senator`s yard.

[omaar-101]

Yet it is Barack & Michelle Obama who are the `Elitist` Though the Obama`s just Recently Paid Off Their Student Loans !!!


Big Note: During the 2004 presidential campaign, Teresa Heinz Kerry, whose fortune was estimated to be worth more than $750 million, eventually released comparably limited information about her finances after repeated demands from Republicans who asserted the public%u2019s right to know because they said her finances were intertwined with those of her husband%u2019s presidential campaign.

The Kerry campaign had benefited from a $6.4 million personal loan Sen. Kerry secured using, as collateral, equity in a Boston townhouse the couple jointly owned.

Likewise, John McCain%u2019s presidential campaign benefited from Cindy McCain%u2019s fortune, using a `Legal Loophole` to travel the country in a Jet Owned by her company for Cut-Rate Fares.

Real Elitist: While Cindy McCain, her dependent children and the trusts and companies they control made as much as $29 million - and likely substantially more - from her family%u2019s business interests from 2004 through last year, data from the Internal Revenue Service, the U.S. Senate, U.S. Office of Government Ethics and the Center for Responsive Politics also reveals that they spent $11 million purchasing five condominiums for the family, hired additional household help and racked up progressively larger credit cards bills almost every year.

[rodshawnd]

This must be a slow news week, given the hoopla this non-story has created. The fact that Obama secured an interest rate below the "average" rate at the time tells us absolutley nothing without knowing his credit profile (FICO, DTI, etc.)relative to "average" borrowers. High Net Worth individuals get more favorable terms on banking products than normal folks and that''s a fact. This is an example of shoddy journalism to drum-up controversy where there is none, and this reporter should know better.

[ljljaz]

Obama is so crooked, he spends all day trying to hide it.
About $200,000.00 just from Tony Rezko for his campaign, but tells his voters, (lies to the world) that he takes nothing from special interest groups. This guy is a real joke.
Has a family of a special interest group put amounts in $2000''s as different family names, it ends up as over $60k, just a cheating way from a special interest group. CBS should do a report on this, now thats real news. And the list goes on! Obama is a CHEATTER! Run the cheater report.