Barack Obama, sweetie, do tell us how your $1.32 million home loan below market rates without paying the normal extra fees demonstrates “new politics,” please.
Funny, Mrs. O neglected to mention this special home loan break while whining about her college loans and kids’ piano/ballet lesson bills.
WaPo has the details.
The RNC sends its bullet points on Obama’s glass houses:
Today, The Washington Post Reported That Obama Received A Sweetheart Mortgage Deal For His Chicago Mansion:
Obama Received A Discounted Rate On His $1.32 Million Mortgage For His Georgian Mansion In Chicago. “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.” (Joe Stephens, “Obama Got Discount On Home Loan,” The Washington Post, 7/2/08)
* “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.” (Joe Stephens, “Obama Got Discount On Home Loan,” The Washington Post, 7/2/08)
Obama’s Discounted Rate Could Have Saved Him More Than $300 Per Month. “Compared with the average terms offered at the time in Chicago, Obama’s rate could have saved him more than $300 per month.” (Joe Stephens, “Obama Got Discount On Home Loan,” The Washington Post, 7/2/08)
The Obamas Secured Their Discounted Home Loan Despite The Fact That They Had “No Prior Relationship With Northern Trust When They Applied For The Loan.” “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.” (Joe Stephens, “Obama Got Discount On Home Loan,” The Washington Post, 7/2/08)
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)