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Obama hypocracy? Do as I say, not as I do. |
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Written by Dr. Rich Swier
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Wednesday, 02 July 2008 |
 The Los Angeles Times reports that, "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. He secured a $1.32-million mortgage from Northern Trust in Illinois.
The freshman Democratic senator received a discount. He locked in an interest rate of 5.625% on the 30-year fixed-rate mortgage at a time when such loans in Chicago averaged as much as 6%. 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 did 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."
The LA Times points out, "Within Obama's presidential campaign organization, former Fannie Mae Chairman James A. Johnson resigned abruptly as head of the vice presidential search committee after his favorable Countrywide loan became public."
Finally the Time article points out the Rezko connection, "Obama's house 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 asking price of $625,000. Rita Rezko later sold a portion of the undeveloped lot to the Obamas, enlarging the senator's yard.
Last month, Tony Rezko was convicted of 16 counts in an influence-peddling scheme that reached the highest levels of Illinois state government."
So adding up the other Democratic Senators who have taken loans that are sweetheart deals there are now three.
Two other prominent Democrats were are on the Countrywide take. According to Bloomburg.com, "[Democrat] Senator Kent Conrad said he was given preferential treatment on a mortgage from Countrywide Financial Corp. and will write a $10,500 check to charity. "It appears Countrywide waived one point on my mortgage,'' Conrad, a North Dakota Democrat, said in a statement today in Washington."
"Conrad and [Democrat] Senator Christopher Dodd, who [since 2006 and before the current housing crisis] oversees the U.S. mortgage industry as chairman of the Senate Banking Committee, were among those who received loans through Countrywide's "V.I.P.'' program, which waived points, fees and borrowing rules for prominent people, Portfolio magazine reported June 12. Dodd has denied receiving preferential treatment." according to Bloomberg.com.
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