Obama; Obtained favors from an industry he rails about (Congress, candidacy, campaign)
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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.
Quote:
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."
Just taking advantage of his position and connections? As usual?
Just taking advantage of his position and connections? As usual?
He was obviously a good investment. Someone's looking for dirt that ain't there. Slow news day.
"The bottom line is, this was a business proposition for us," [Northern Trust VP O'Connell] said. "Our business model is to service and pursue successful individuals, families and institutions."
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.
In March, in response to media questions, Obama posted on his campaign Web site records related to his house purchase.
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."
Obama Got Discount On Home Loan, Washington Post: Campaign Defends Lower Rate For 2005 Mortgage As Lender Competition For Business - CBS News (broken link)
Easy enough to just chalk it up to a "slow news day" however this could potentially be considered a "gift" since it has a financial value attached to it (the discount, not the mortgage itself) and if it is thats illegal. Pretty simple, its black and white here, not just someone trying to make up news.
Remove all of the personal financial implications, and lets just say its all on the up and up and no laws were broken. Dont you think its fair that one would wonder how Obama would deal with questionable mortgage practices when one of the companies who may/may not be involved gave him a break on his home? I dont see him throwing them under the bus if they did something wrong, however I do see him keeping that in mind and trying to return the favor if legal trouble comes their way over the whole mortgage (not Obama's but in general) mess.
Again...legitimate concerns here, you cant let this slide as just a "slow news day" blow off.
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.
Quote:
"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."
"Obama had no prior relationship with the lender, was taking out a $1.32 million loan below market rates, without paying the customary fees. So what? . . . Barack Obama did precisely what every other politician does, and nothing more. The only reason this story merits any attention is that Obama's campaign has created a mythology around him that casts him as a reformer."
I mean, I want to believe the "change", I really do. Everyday though, there is something new...Honestly, like Bob Owens above, this really doesn't bother me. I mean, why go into politics at all, unless you're somehow going to personally benefit from it. While this example is not earthshattering, it illustrates how very, very obvious it is that the O is cut from the same mold as every other politician.
Agreed, I think this is an illustration that the O's politics of change are really...cut from the same mold as every other politician. Though this really doesn't bother me, I think its a perfect illustration that Obama's "change we can believe in" is damn fine marketing, but nothing more.
He was obviously a good investment. Someone's looking for dirt that ain't there. Slow news day.
Actually, this is the type of stuff that can kill a candidacy. I think you significantly underestimate this type of stuff.
Obama is running as a "new wave" candidate, a change from politics as usual.
The article points out two distinct problems for Obama:
- 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.
- Obama paid no origination fee or discount points, as some consumers do to reduce their interest rates.
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Change we can believe; Obama received home loan discount
