Elections OBAMA- Mortgage Sweethart Deal... HAHAHA [Archive]

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recxjake

07-02-2008, 08:34 AM

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.

http://www.washingtonpost.com/wp-dyn/content/article/2008/07/01/AR2008070103008_pf.html

Donger

07-02-2008, 08:36 AM

That doesn't sound like a sweetheart deal at all.

noa

07-02-2008, 08:37 AM

I wish they wouldn't use technical jargon like super super jumbo. Give it to me straight man.

recxjake

07-02-2008, 08:37 AM

That doesn't sound like a sweetheart deal at all.

Ask yourself this... Can you... get a 1 million + loan for 5.6%... NO

He got a discount because he is a Senator... against the law no... but isn't this the guy that is against insider action? For Change?

Direckshun

07-02-2008, 08:37 AM

"hahaha"?

This is fairly standard operating procedure, but it does sound like a gift.

Direckshun

07-02-2008, 08:38 AM

isn't this the guy that is against insider action? For Change?
And there it is.

Man, you broke the elastic making your point this time. What a stretch.

recxjake

07-02-2008, 08:39 AM

"hahaha"?

This is fairly standard operating procedure, but it does sound like a gift.

Standard operating procedure if you are a Senator... not the guy working 8-5 for 30,000 grand a year

chiefforlife

07-02-2008, 08:42 AM

Standard operating procedure if you are a Senator... not the guy working 8-5 for 30,000 grand a year

That guy doesnt buy a 1.6 million dollar home.

Havent you heard of Lending tree, banks compete for your business. Hehe

Seriously Recx, this is ridiculous.

dirk digler

07-02-2008, 08:47 AM

Standard operating procedure if you are a Senator... not the guy working 8-5 for 30,000 grand a year

My home loan is 5.5 for 20 years. :shrug:

Of course my house didn't cost a million either.

Also Politco calling it a non story and there was nothing wrong with it

Obama's loan

An interesting story (http://www.washingtonpost.com/wp-dyn/content/article/2008/07/01/AR2008070103008_pf.html) in the Washington Post today on the Obamas getting a good deal on their home loan, but while the GOP is making much of it this morning, it seems well short of the Countrywide story: There's no evidence that they dealt with the bank through a special side door for powerful people like the one Countrywide maintained.
Mike Allen, as always, has (http://www.politico.com/playbook/) a sophisticated take, noting that the Post put the story on A3: "The tipoff that this story is padded – and that they weren’t sure it was news – is that it includes irrelevant quotes about Countrywide, which was not the Obama lender. This would have been an interesting A1 story if they had gone with the 'wanted to step up' [their lifestyle] angle instead of trying to stretch the loan thing."

Taco John

07-02-2008, 08:49 AM

Ask yourself this... Can you... get a 1 million + loan for 5.6%... NO

At the time of this loan, actually... yes.

dirk digler

07-02-2008, 08:51 AM

At the time of this loan, actually... yes.

Good point. That was over 4 years ago and lending companies were practically giving money away with cheap rates and all kinds of discounts and incentives.

This was just another smear attempt by recxjake. Nothing new.

Adept Havelock

07-02-2008, 08:52 AM

LMAO

And another recxjake thread....

.

Direckshun

07-02-2008, 08:53 AM

Standard operating procedure if you are a Senator... not the guy working 8-5 for 30,000 grand a year
...

Does Obama work from 8-5 for $30,000 a year?

jettio

07-02-2008, 08:57 AM

LMAO

And another recxjake thread....

.

In fairness to recxjake, he does not try to think things through before running with it.

WTF with the WashPost, the editors ought to think before running a non-story and tagging a provocative headline to it.

Donger

07-02-2008, 08:57 AM

Ask yourself this... Can you... get a 1 million + loan for 5.6%... NO

He got a discount because he is a Senator... against the law no... but isn't this the guy that is against insider action? For Change?

Yes, I probably could.

Direckshun

07-02-2008, 09:00 AM

Politico with the bitchslap (http://www.politico.com/playbook/):
The tipoff that this story is padded – and that they weren’t sure it was news – is that it includes irrelevant quotes about Countrywide, which was not the Obama lender.

recxjake

07-02-2008, 09:17 AM

In fairness to recxjake, he does not try to think things through before running with it.

WTF with the WashPost, the editors ought to think before running a non-story and tagging a provocative headline to it.

ROFL...

You think I care?! This will be getting coverage all day long... its in the Washingtong Post Newspaper... I didn't make this up!...

The damage has been done... Obama is no longer the prince everyone thought he was.... and this story just proves the point.

Mr. Kotter

07-02-2008, 09:27 AM

I'm sure dirk will be along soon to explain to us why this (like the McCain's trust goof-up) is also "interesting...."

;)

Mr. Kotter

07-02-2008, 09:29 AM

Yes, I probably could.

Wow. :eek:

Slummin' wit da boys, like Dane and Illogical....eh? :shrug:

Amnorix

07-02-2008, 09:30 AM

LMAO

And another recxjake thread....

.

QFT

recxjake

07-02-2008, 09:31 AM

Good point. That was over 4 years ago and lending companies were practically giving money away with cheap rates and all kinds of discounts and incentives.

This was just another smear attempt by recxjake. Nothing new.

Yea, or the Washington Post

noa

07-02-2008, 09:34 AM

http://www.fivethirtyeight.com/2008/07/most-irresponsible-piece-of-journalism.html

Washington Post has no basis for labeling this a sweetheart deal without knowing Obama's FICO score. This is really bad reporting.

jettio

07-02-2008, 09:36 AM

ROFL...

You think I care?! This will be getting coverage all day long... its in the Washingtong Post Newspaper... I didn't make this up!...

The damage has been done... Obama is no longer the prince everyone thought he was.... and this story just proves the point.

Most Americans are getting through this day without tracking stupid stories like this, and of the Americans that are paying attention, most of them like to think of themselves as being fair-minded evaluators.

The damage has been done to the boy who cried wolf.

Imagine if you are a conservative with a measurable IQ and you go to one of your websites today and the best you can find is a non-story that guys like you think are powerful and effective.

That has to really be demoralizing to an intelligent McCain supporter to know that you got nothing.

Mr. Kotter

07-02-2008, 09:42 AM

recxjake

07-02-2008, 09:43 AM

Mr. Kotter

07-02-2008, 09:46 AM

Pittsie

07-02-2008, 09:51 AM

Jake once again runs with any story fed to him without a hint of critical thought.

"Obama's mortgage rate was 5.625 percent; the Washington Post cites databases stating that the average rate on comparable properties was 5.93 percent. So Obama's rate was 30 basis points better than the average....

According to current rate quotes from myFICO.com, a borrower with very good credit can expect a mortgage rate about 30 basis points better than someone with pretty good credit, and a borrower with excellent credit can expect about a 50 basis point discount."

http://www.fivethirtyeight.com/2008/07/most-irresponsible-piece-of-journalism.html

So a guy with a $2.4M book deal received the same discount as a borrower with very good credit. Yawn.

noa

07-02-2008, 09:52 AM

The sad thing is most of you think this is ok?! The truth is that you or I couldn't have gotten this good of a rate. Senator Obama got a better deal because he is a United States Senator. If you think thats just fine... ok... but I don't. Senators should not be treated better then ordinary people that they were elected TO SERVE.

This is a flat out lie. You do not know what kind of rate I could get under those circumstances. Obama was likely an appealing candidate for a loan. He had just made a lot of money, he and his wife had secure jobs, they had no credit card debt, they just sold a condo that netted them a decent profit. It is likely that this rate is perfectly in keeping with any Joe Schmo under those circumstances.

This is terrible journalism and I am really disappointed that people are relying on this to bash Obama. Nobody knows enough facts to draw a conclusion.

recxjake

07-02-2008, 09:57 AM

This is a flat out lie. You do not know what kind of rate I could get under those circumstances. Obama was likely an appealing candidate for a loan.

Yup... He was a United States Senator.

Donger

07-02-2008, 09:59 AM

Yup... He was a United States Senator.

Do you know anything about mortgages?

Taco John

07-02-2008, 10:04 AM

The sad thing is most of you think this is ok?! The truth is that you or I couldn't have gotten this good of a rate.

If you were an adult, you might understand that prior to just recently, a lot of people got a lot of really good deals on their mortgages. This story is a non-starter. My own house appreciated 100% in just under two years on a 5.7% mortgage term that I secured in 2002.

There is nothing remarkable about this story.

recxjake

07-02-2008, 10:07 AM

NOTE: Obama Also Has Received $71,000 In Campaign Contributions From Northern Trust Employees. "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." (Joe Stephens, "Obama Got Discount On Home Loan," The Washington Post, 7/2/08)

FLASHBACK: Obama Paid $300,000 Less Than The Asking Price For His Mansion, While Tony Rezko's Wife Paid Full Price For A Vacant Lot Next Door On The Very Same Day. "Two years ago, Obama bought a mansion on the South Side, in the Kenwood neighborhood, from a doctor. On the same day, [Antoin 'Tony'] Rezko's wife, Rita Rezko, bought the vacant lot next door from the same seller. The doctor had listed the properties for sale together. He sold the house to Obama for $300,000 below the asking price. The doctor got his asking price on the lot from Rezko's wife." (Tim Novak, "Obama And His Rezko Ties," Chicago Sun-Times, 4/23/07)

The Seller Of Obama's Home "Wanted To Sell Both Properties At The Same Time." "On the same day Obama closed on his house, Rezko's wife bought the adjacent empty lot, meeting the condition of the seller who wanted to sell both properties at the same time." (Brian Ross and Rhonda Schwartz, "The Rezko Connection," ABC News' "The Blotter" Blog, abcnews.go.com, 1/10/08)
Obama Later Purchased A Portion Of Rezko's Land For $104,500; It Was Valued At $40,500. "Later, the Obamas bought a 10-foot-by-150-foot piece of the lot for $104,500. An appraisal put the value of the strip at $40,500, a spokesman said, but Obama considered it fair to pay one-sixth of the original price for one-sixth of the lot." (Peter Slevin, "Obama Says He Regrets Land Deal With Fundraiser," The Washington Post, 12/17/06)

Jim Johnson, A Former CEO Of Fannie Mae And Former Top Campaign Adviser, Also Received Sweetheart Housing Deal:

Obama's Former Top Adviser, Jim Johnson, Resigned "After His Favorable Countrywide Loan Became Public." "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." (Joe Stephens, "Obama Got Discount On Home Loan," The Washington Post, 7/2/08)

Johnson Received Special Loans From Countrywide Financial CEO Angelo Mozilo. "Countrywide Financial Corp. makes mortgage loans through a vast network of offices, brokers and call centers. But a few customers have gotten their loans a special way: through Countrywide Chief Executive Angelo Mozilo. These borrowers, known internally as 'friends of Angelo' or FoA, include two former CEOs of Fannie Mae, the biggest buyer of Countrywide's mortgages, say people familiar with the matter. One was James Johnson, a longtime Democratic Party power and an adviser to Sen. Barack Obama's campaign, who this past week was named to a panel that is vetting running-mate possibilities for the presumed nominee." (Glenn R. Simpson and James R. Hagerty, "Countrywide Friends Got Good Loans," The Wall Street Journal, 6/7/08)

While CEO Of Fannie Mae, Johnson And Mozilo Worked Closely And Maintained A "Close Friendship." "From 1991 to 1998, Mr. Johnson served as CEO of the Federal National Mortgage Association, also known as Fannie Mae, which worked closely with Countrywide, one of the nation's leading lenders and loan servicing companies. In 1996, Mr. Johnson named Mr. Mozilo as chairman of Fannie Mae's national advisory council. A 1999 article in the American Banker said the two men had a 'close friendship.'" (Josh Gerstein, "Top Talent Scout For Obama Tied To Subprime Lender," The New York Sun, 6/9/08)
"Property Records Show Mr. Johnson Has Received More Than $7 Million In Loans From Countrywide Since 1998, The First Coming In The Waning Days Of His Fannie Mae Tenure." (Glenn R. Simpson and James R. Hagerty, "Countrywide Friends Got Good Loans," The Wall Street Journal, 6/7/08)

At Least Two Of The Mortgages Were At Rates "Below Market Averages." "The Journal said at least two of the mortgages, among a series of loans made available to people Countrywide officials called 'friends of Angelo,' were at rates below market averages, though it is difficult to predict a market rate without access to nonpublic information about a borrower's credit history and other factors that can reduce interest charges on a loan." (Josh Gerstein, "Top Talent Scout For Obama Tied To Subprime Lender," The New York Sun, 6/9/08)

NOTE: Penny Pritzker, Obama's National Finance Chair And Campaign Bundler, Owned A Failed Bank That Specialized In Subprime Lending:

Penny Pritzker Is The National Finance Chairman For Barack Obama. "And Penny Pritzker, a Chicago philanthropist, serves as Mr. Obama's national finance chairman even as her brother, Jay Robert, holds fund-raisers across town for Mrs. Clinton." (Jodi Kantor, "In Democratic Families, Politics Makes For Estranged Bedfellows," The New York Times, 2/4/08)

Pritzker Is A Bundler For Obama's Presidential Campaign And Has Committed To Raising Over $200,000. (Obama For America Website, www.barackobama.com, Accessed 5/19 /08)
The Pritzker Family Co-Owned Superior Bank FSB. "Ms. Pritzker, who declined to be interviewed, has confronted other challenges, including the 2001 collapse of Superior Bank FSB, which the Pritzker family co-owned, resulting in a $460-million payment to federal regulators, and a rift over family assets that settled out of court in 2005. She oversees the Pritzker family's non-hotel real estate interests and chairs its TransUnion LLC credit bureau." (Steven R. Strahler, "Penny Pritzker," Chicago Crain's Business, 5/7/07)

"Superior Bank Specialized In 'Sub-Prime Lending,' Which Is Making Loans To Underserved Borrowers, Who Are Often Poor Minorities." (Kathleen Day, "Regulators Probe Bank Loan To Co-Owner," The Washington Post, 7/31/01)

Mr. Kotter

07-02-2008, 10:08 AM

This is a flat out lie. You do not know what kind of rate I could get under those circumstances. Obama was likely an appealing candidate for a loan. He had just made a lot of money, he and his wife had secure jobs, they had no credit card debt, they just sold a condo that netted them a decent profit. It is likely that this rate is perfectly in keeping with any Joe Schmo under those circumstances.

This is terrible journalism and I am really disappointed that people are relying on this to bash Obama. Nobody knows enough facts to draw a conclusion.

Kinda like the story on McCain's property tax faux paus? :shrug:

chiefforlife

07-02-2008, 10:09 AM

Yup... He was a United States Senator.

I really dont like personal attacks but you are deserving of one. This is no special deal, its not even news worthy.

noa

07-02-2008, 10:11 AM

Yup... He was a United States Senator.

You have no basis for making that conclusion. Pure conjecture.

noa

07-02-2008, 10:11 AM

Kinda like the story on McCain's property tax faux paus? :shrug:

Honestly, I didn't really follow that story/thread because it seemed pretty bogus to me.

chiefforlife

07-02-2008, 10:12 AM

Kinda like the story on McCain's property tax faux paus? :shrug:

For the record, I too think the McCain story of unpaid property tax was overblown into something it wasnt.

little jacob

07-02-2008, 10:14 AM

the last post about 300k off the selling price with Tony Rezko moving in next door is more curious than the opening post.

the opening post doesn't sound like anything illegal. i would guess that if you were uber rich like the Obamas are, and you had millions upon millions invested with a bank, they might give you a good deal on a mortgage too.

HolmeZz

07-02-2008, 10:15 AM

Holy crap, Fox News is running with this story. LMAO

bkkcoh

07-02-2008, 10:19 AM

For the record, I too think the McCain story of unpaid property tax was overblown into something it wasnt.

Isn't that the job of the press outlets that are up 24/7?

the last post about 300k off the selling price with Tony Rezko moving in next door is more curious than the opening post.

the opening post doesn't sound like anything illegal. i would guess that if you were uber rich like the Obamas are, and you had millions upon millions invested with a bank, they might give you a good deal on a mortgage too.

If someone buys a house for 1.6 and has 3 million in the bank should get a good rate. A question would be would it make more sense to go ahead and pay off the loan for the house?

little jacob

07-02-2008, 10:21 AM

If someone buys a house for 1.6 and has 3 million in the bank should get a good rate. A question would be would it make more sense to go ahead and pay off the loan for the house?

that's a complex question. depends on your own financial goals and requirements. if you don't mind your savings being cut in half maybe it makes sense to buy it in cash. If you can get a loan for basically nothing then why not pay it off over time?

dirk digler

07-02-2008, 10:35 AM

I'm sure dirk will be along soon to explain to us why this (like the McCain's trust goof-up) is also "interesting...."

;)

It is a non story Politico said there was no sweetheart deal. I just posted that my interest rate was 5.5 and I bought my house a little over 3 years ago. Of course I didn't pay millions of dollars for mine but to say that some regular folk couldn't get that interest rate is silly.

The McCains not paying his property taxes story was interesting because here is a guy running for POTUS and not paying taxes. If it were Obama it would be front page news claiming how he was stealing or some shit.

Mr. Kotter

07-02-2008, 11:14 AM

It is a non story Politico said there was no sweetheart deal. I just posted that my interest rate was 5.5 and I bought my house a little over 3 years ago. Of course I didn't pay millions of dollars for mine but to say that some regular folk couldn't get that interest rate is silly.

The McCains not paying his property taxes story was interesting because here is a guy running for POTUS and not paying taxes. If it were Obama it would be front page news claiming how he was stealing or some shit.

Politco says? Well then, it must be true!

I don't think, from what I've seen....that your description of the McCain's situation is entirely fair either. Of course, we all tend to see....what we want to see though. Me included.

;)

Otherwise....I hope life is treating you well, man. :thumb:

dirk digler

07-02-2008, 11:23 AM

Politco says? Well then, it must be true!

I don't think, from what I've seen....that your description of the McCain's situation is entirely fair either. Of course, we all tend to see....what we want to see though. Me included.

;)

Otherwise....I hope life is treating you well, man. :thumb:

Politico is pretty even handed probably more so than most places.

I don't get why you think the McCain piece was unfair? Did they or did they not pay their property tax on that property? No they didn't. I wasn't calling him a criminal or anything just senile. :p

Anyway life is treating me good and I hope it is treating you good as well. This year will be the first year in 4 years... I think that I won't be going to training camp. I am going to miss River Falls and their pizza.

alanm

07-02-2008, 12:21 PM

My home loan is 5.5 for 20 years. :shrug:

Of course my house didn't cost a million either.

Also Politco calling it a non story and there was nothing wrong with it
It's only a non story for a democrat.

DaKCMan AP

07-02-2008, 12:24 PM

It's a non story for anyone who is even remotely intelligent.

FYP

noa

07-02-2008, 12:27 PM

It's only a non story for a democrat.

So what do you take away from the story?

Calcountry

07-02-2008, 12:49 PM

...

Does Obama work from 8-5 for $30,000 a year?
He should, because that is what he is worth.