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Obama Got Loan Discount

Wed, Jul 2, 2008 at 9:14 am Posted by Steven in Obamessiah 1 Comment

Back in December, a lot was made about Barack Hussein Obama’s tough stance against the mortgage industry and practices that he called “predatory lending.”  Then, suddenly, all the tough mortgage talk went away.  People assumed it was because a handful of Senate Democrats were involved with questionable mortgage deals themselves, then they assumed it was because Jim Johnson of the Obamessiah’s VP vetting team was implicated in a questionable deal with Countrywide.

Now, according to the Washington Post, it could be that Obama was knee deep in a shady mortgage deal of his own.

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.

[...]

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.




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  1. Obama and Libs “Own” the Wall Street Crisis « Over-the-Hill Oracles says:
    September 29, 2008 at 7:43 pm

    [...] he (as did other top Democrat leaders) benefited from a “super super jumbo” low interest loan rate for his Chicago home:  Shortly after joining the U.S. Senate and while enjoying a surge in income, [...]