One month ago tomorrow, The Washington Post published a story titled "Obama Got Discount Home Loan."The Obama family's purchase of their South Side Chicago mansion had already been steeped in controversy when the Post story broke. Two mysterious vacant lot purchases in 2005 by Rita Rezko--strips of land adjoing the south end of the Obamas property--including one made on the same day the Democrats' first family closed on their Georgian-style home, continue to raise questions about the judgement of the junior senator of Illinois. Rezko is the wife of lontime Barack Obama friend and political contributer--and recently convicted felon--Antoin "Tony" Rezko.
Naturally the Obama campaign office denies that the Obamas received a sweetheart deal on their mortgage. The lender was Northern Trust, a large Chicago bank. About the loan, The Washington Post in that article that the mortgage was "below the average for such loans at the time in Chicago."
Obama spokesman Ben LeBolt spoke to Fox News Channel's Major Garrett on the day the Post story broke:
LaBolt says the Obama family was flush with cash at the time they were loan shopping and that the bank in question, Northern Trust, sought their business by offering a lower mortgage rate and to respond to a competitive mortgage rate offered by another lender. LaBolt would not identify the lender "at this time."
Not at this time...LeBolt said that on July 2, today is August 1.
When will the Obama campaign--or better yet, Obama himself--have the audacity to tell the electorate who the other lender was?
By the way, it wasn't Alexi Giannoulias' Broadway Bank, was it?
Related posts:
Obama's "sweetheart" mortgage: Was the competing lender Broadway Bank?
Obama, Alexi, and Broadway Bank
Judicial Watch files complaints against Obama over mansion mortgage
Rita Rezko's contribution to America's worst government, Cook County
Obama's state treasurer pal needs a memory upgrade
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7 comments:
What was the discount? His mortgage rate was average for a family with their income level.
Or are you now saying Americans shouldn't strive to reach the American dream of owning a home lest someone take issue with them taking out an average mortgage?
Seems clear to me...
From the Washington Post:
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.
Who was the other lender?
It pays to read the whole article, John. Then again, this article (and many other news pieces from the last 18 months) puts the lie to the "fawning media" malarkey.
That WaPo article contradicts itself:
--
[Northern Trust Vice President John O'Connell] 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."
--
Northern Trust was offering better mortgage rates than other banks which had 5.94% to 6% rates in Chicago back in early 2004.
I'd go with Northern Trust also... as I'm sure you would.
(It's interesting to note that you've avoided all the parts of the article describing the Cindy McCain's megamillions and the fact the McCain's own several mansions and retreats and owe no debts on them.)
Northern is covering its tracks. You quote 2004 rates, Obama's mortgage deal was done in mid-2005.
As for Cindy's mansions: Did she get a special mortgage? Did Tony Rezko--a recently convicted felon--help her buy those places?
Even the best of us make typos... "2004" should read 2005. My bad.
As for Northern Trust "covering its tracks" ... you need to wash that tinfoil hat you're wearing.
To your point, however, and from that same gotcha, contradictory WaPo article:
--
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.
--
Note that the Northern Trust rate was
To be honest, that's exactly the same way my wife and I also got our good-to-average rate... Our mortgage broker quoted us current rates verbally and, when the property deal was ready, we locked in at the lowest rate she had found for us. (Rates have since gone up and ours is now better-than-average.)
(And according to past interviews, corporations that Ms. McCain controls thanks to her booze money pays for their homes, including their 2nd beach house ... which was needed because the kids "took over" their 1st beach house. By the way, the in-progress takeover of Anheuser-Busch by a European beer company stands to make a mint for Cindy McCain's beer distribution co.)
...And the rates I quoted were the ones the WaPo article quoted.
Did you ever even read that article? Or are you just continuing to regurgitate McCain talking points on it?
Source for the Cindy McCain info on buying ritzy condos and mansions: ABC News and Politico.
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