This is NOT another F.O.A., Chris Dodd situation.. - Mercedes-Benz Forum

 
LinkBack Thread Tools Display Modes
post #1 of 6 (permalink) Old 07-02-2008, 02:47 PM Thread Starter
BenzWorld Member
 
pcunningham42's Avatar
 
Date registered: Nov 2006
Vehicle: 1997 S420 Midnight Blue 113,000
Location: New York
Posts: 397
Mentioned: 0 Post(s)
Quoted: 4 Post(s)
Garage
(Thread Starter)
This is NOT another F.O.A., Chris Dodd situation..

Obama Got Discount on Home Loan
Campaign Defends Lower Rate as Lender Competition for Business

By Joe Stephens
Washington Post Staff Writer
Wednesday, July 2, 2008; A03



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



washingtonpost.com - nation, world, technology and Washington area news and headlines

Be responsible
pcunningham42 is offline  
Sponsored Links
Advertisement
 
post #2 of 6 (permalink) Old 07-02-2008, 03:01 PM
DP
Moderator
 
DP's Avatar
 
Date registered: Aug 2002
Vehicle: 190E, 400E, SLK350
Location: Chesapeak Bay
Posts: 64,125
Mentioned: 2 Post(s)
Quoted: 991 Post(s)
Lifetime Premium Member
Sometimes lenders will drop their trousers to gain someone's business. Maybe they got him on another property or a second, did the Joe the reporter actually check the WHOLE deal?
DP is offline  
post #3 of 6 (permalink) Old 07-02-2008, 03:11 PM Thread Starter
BenzWorld Member
 
pcunningham42's Avatar
 
Date registered: Nov 2006
Vehicle: 1997 S420 Midnight Blue 113,000
Location: New York
Posts: 397
Mentioned: 0 Post(s)
Quoted: 4 Post(s)
Garage
(Thread Starter)
Quote:
Originally Posted by drewprof View Post
Sometimes lenders will drop their trousers to gain someone's business. Maybe they got him on another property or a second, did the Joe the reporter actually check the WHOLE deal?
Yes, this looks harmless. He got the better loan rates because of his/hers spike in income and NT wanted the business. The rest of the article is below.

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."


When the Obamas secured the loan, their income had risen dramatically. Obama assumed his Senate seat in January 2005, with an annual salary of $162,100. That same month, Random House agreed to reissue an Obama memoir, for which it originally paid $40,000, as part of a $2.27 million deal that included two future nonfiction books and a children's book.

Around the same time, the University of Chicago Hospitals promoted Michelle Obama to a vice president and more than doubled her pay, to $317,000.

The couple wanted to step up from their $415,000 condo. They chose a house with six bedrooms, four fireplaces, a four-car garage and 5 1/2 baths, including a double steam shower and a marble powder room. It had a wine cellar, a music room, a library, a solarium, beveled glass doors and a granite-floored kitchen.

Jumbo loans are for amounts up to $650,000, but the Obamas' $1.32 million loan was so large that few comparables are available.

Unlike Countrywide, where leaked internal e-mails documented a special discount program for friends of chief executive Angelo Mozilo, Northern Trust says it has no formal program to provide discounts to public officials. Loan officers may consider a borrower's occupation when establishing an interest rate, the bank said.


"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."


Obama's house purchase has been a source of controversy. In 2006, the Chicago Tribune reported that on the day of the closing, the wife of Obama's longtime friend and fundraiser Antoin "Tony" Rezko closed on an adjoining lot that had been the estate's side yard.

The Obamas bought the house for $300,000 less than the asking price of $1.95 million, while Rezko's wife, Rita, bought the neighboring lot for the full asking price of $625,000. Rita Rezko later sold a portion of the undeveloped lot to the Obamas, enlarging the senator's yard.

Tony Rezko already had been linked to a grand jury investigation involving public corruption. Last month, he was convicted of 16 counts in an influence-peddling scheme that reached the highest levels of Illinois state government.

Be responsible
pcunningham42 is offline  
post #4 of 6 (permalink) Old 07-02-2008, 05:02 PM
BenzWorld Elite
 
Date registered: Sep 2004
Vehicle: 95 E300
Location: Inside my head
Posts: 36,850
Mentioned: 0 Post(s)
Quoted: 392 Post(s)
Typical politician feeding at the trough.

The biggest problems we are facing right now have to do with George Bush trying to bring more and more power into the executive branch and not go through Congress at all and that’s what I intend to reverse.

~ Senator Barack H. Obama
Botnst is offline  
post #5 of 6 (permalink) Old 07-03-2008, 10:19 AM
BenzWorld Elite
 
mcbear's Avatar
 
Date registered: Apr 2004
Vehicle: E500Es
Location: The BlueGrass State
Posts: 29,579
Mentioned: 0 Post(s)
Quoted: 3 Post(s)
Quote:
Originally Posted by FTFA
"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."
After having just gone through this very thing in March, and watching the backdoor, sidedoor and byzantine nature of the way things were thrown together to get my mortgage, and ending up with a rate that was an easy .66 lower [4.375% fixed] than what was published at the time, I am not surprised at what banks do to get solid loans that they know will not default or sour.

As I posted on the previous thread on the subject, these mortgages are so personalized and these politicians are so wealthy by general nature of the biz that the "deals" they get are normal to that tier of borrowers, whether politician or not. Unless an independent group goes through and does 435 investigations of each and every Congressman and Senator and establishes a series of benchmarks, these stories on "Senator R or Congressman P" are just useless. Unless there is credible evidence of quid pro quo, the story is not a story.

McBear,
Kentucky

Being smart is knowing the difference, in a sticky situation between a well delivered anecdote and a well delivered antidote - bear.
mcbear is offline  
post #6 of 6 (permalink) Old 07-03-2008, 10:21 AM
BenzWorld Elite
 
FeelTheLove's Avatar
 
Date registered: Sep 2004
Vehicle: 83 Astral Silver 280 SL
Location: Planet Houston
Posts: 28,829
Mentioned: 0 Post(s)
Quoted: 8 Post(s)
Just another Republican Bull Shit Scandal.

Recall that earlier generations faced down fascism and communism not just with missiles and tanks, but with sturdy alliances and enduring convictions. They understood that our power alone cannot protect us, nor does it entitle us to do as we please. Instead, they knew that our power grows through its prudent use; our security emanates from the justness of our cause, the force of our example, the tempering qualities of humility and restraint.

-President Barack Obama, 1st Inaugural address
FeelTheLove is offline  
Sponsored Links
Advertisement
 
Reply

  Mercedes-Benz Forum > General Mercedes-Benz Forums > Off-Topic

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the Mercedes-Benz Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in











  • Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
     
    Thread Tools
    Show Printable Version Show Printable Version
    Email this Page Email this Page
    Display Modes
    Linear Mode Linear Mode



    Similar Threads
    Topic Author Forum Replies Last Post
    Wasn't Dodd a Pres. Candidate as well as Chairman of the Senate Banking Committee? pcunningham42 Off-Topic 4 06-14-2008 12:15 PM
    A SITUATION I COULD DO WITHOUT..... david26209 W126 S,SE,SEC,SEL,SD,SDL Class 2 02-27-2008 04:08 PM
    My Situation MorrisTigerson69 W126 S,SE,SEC,SEL,SD,SDL Class 5 07-18-2007 09:20 AM
    So what would you do in this situation... Miked619 R170 SLK-Class 8 08-23-2004 07:02 AM
    Update on my situation BriRedfern W126 S,SE,SEC,SEL,SD,SDL Class 4 07-23-2004 05:13 PM

    Posting Rules  
    You may post new threads
    You may post replies
    You may not post attachments
    You may not edit your posts

    BB code is On
    Smilies are On
    [IMG] code is On
    HTML code is Off
    Trackbacks are On
    Pingbacks are On
    Refbacks are On

     

    Title goes here

    close
    video goes here
    description goes here. Read Full Story
    For the best viewing experience please update your browser to Google Chrome