Complaint Filed Over Obama’s Sweetheart Mortgage Deal

Obama's mortgage may have violated the law and Senate ethics rules

By California Yankee Posted in | | | | Comments (21) / Email this page » / Leave a comment »

The Hill reports complaints were filed with the Federal Election Commission (FEC) and the Senate Ethics Committee against the Democrats' presidential candidate over Obama's Countrywide-like sweetheart mortgage deal he received from Northern Trust:

Judicial Watch, a conservative legal watchdog group, filed the the complaints after The Washington Post reported that Obama received a discount on a mortgage for a Chicago home valued at $1.65 million:

The complaints said the Illinois senator received a loan at the interest rate of 5.625 percent, which Judicial Watch says is lower than the standard rate of between 5.93 and 6 percent indicated by surveys.

The complaint asks the Senate Ethics Committee to investigate whether the favorable rates constitute a prohibited “gift” under Senate rules.

“It appears that due to his position as a U.S. senator, Barack Obama received improper special treatment from Northern Trust resulting in an illicit ‘gift’ which has a value of almost $125,000 in interest savings,” wrote Judicial Watch President Thomas Fitton in a letter to the Ethics Committee.

The complaint also notes that Northern Trust employees have given $71,000 in donations to Obama’s campaigns.

As noted in the complaints, Northern Trust has supported Barack Obama's political campaigns for elected office since 1990. In addition to the $71,000 Northern Trust employees have donated to Obama, the Northern Trust political action committee gave $1,250 to Senator Obama's 2004 campaign for the United States Senate.

Read on.

According to Judicial Watch, Northern Trust Vice President John O’Connell essentially admitted the company provided Obama preferential loan terms because of his position in the U.S. Senate:

"A person's occupation and salary are two factors; I would expect those are two things we would take into consideration," O'Connell told The Washington Post. "This was a business proposition for us."

"Americans ought to be suspicious when a United States Senator such as Barack Obama, obtains a sweetheart mortgage deal," said Judicial Watch President Tom Fitton. "We have serious concerns that Senator Obama's mortgage may have violated the law and Senate ethics rules."

Obama has tried to spin his questionable mortgage deal as nothing more than the lender competing for Obama's business:

Obama spokesman Ben LaBolt said the rate was adjusted to account for a competing offer from another lender and other factors.

I'm still worried about those "other factors" and "other opportunities." Those "factors" and "opportunities" could be anything, including special access to a grateful U.S. Senator or a President.

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Complaint Filed Over Obama’s Sweetheart Mortgage Deal 21 Comments (0 topical, 21 editorial, 0 hidden) Post a comment »

but why does such a man of the people need a $1.65 million home?

It is in a really nice part. The neighborhood he lives in, Hyde Park, is surround by the South Side on all sides, and is located near the University of Chicago. My guess is that $1.65 million is towards the bottom of the range for this neighborhood.

Ironically, the parts of town right across the street from him and 3 blocks S/SE from him are not really the best parts of town ,if you catch my drift.
4.62, 0.51

Just sayin'.

"PsychObama, qu'est-ce que c'est?"

I have to say I am a bit annoyed with NRSC on this issue. The NRSC never once issues anything on Dodd and Conrad doing anything unethical (in fact a US Congressman had to ask for the inquiry) it makes one wonder if any US Republican Senators did anything like this as well.

This is something they should jump all over, but since they haven't the conclusion is fairly obvious.

When I first got to the appointee level, I gathered up a bunch of agreements the prior Democrat administration made with unions giving certain employees all sorts of benefits that under our law required Legislative approval, absent which they were illegal. I righteously sent them all over to the Legislature for "approval," confident that they wouldn't approve them and I could have some fun getting the money back and maybe firing some people. NOTHING happened with them, then a few months later it came out that the Leg had been conferring the same sorts of benefits on their favored few as well. Live and learn!

In Vino Veritas

If it were Delay getting a deal like this back in 2006 the MSM coverage would be slightly different.

The GOP needs to go after this one, it's crystal clear like the old House bank and post office scandals. Most Americans understand he got a rate they can never get because he's a U.S. Senator. Anyone who dismisses that has "partisan politics" should be made to explain how Delays actions were worse.

"Honor is self-esteem made visible in action." - Ayn Rand, West Point, 1974

Ahhhh. It's only a mortgage. Now if it were gold cufflinks, then we'd have something to talk about.

Pluto, the Ninth Planet - Forever!

Obama's main campaign theme is to ADDRESS MORTGAGE FRAUD.

The same companies that he should fight are the same entities giving him favor. Sadly, these are the same entities giving donation to him.

And in 1996, he was the same lawyer going to court to force companies like CITIBANK to provide "equality" in approving loans between white and black.

And while all his activities in Chicago since 1990s (community org,civil rights, state senate) were focusing on housing...


THIS IS HYPOCRISY to its highest level!

I think you missed my tone of voice.

Do you know what the cufflinks comment referred to? Apparently they were jade. Maybe gold, too.

Pluto, the Ninth Planet - Forever!

But this is serious man, very serious! I don't want my neighbor something like those Chicago apartments used by Obama and Co. for their own interests.

It's big time for me! I dunno. But we need to take this matter seriously.

I don't care about McCain since his policies will not hit me that much (meaning: I'm a man of my own and I don't need government intervention) but if you elect somebody like Obama that's totally nuts - His Chicago people and community are worst than ever!

Does anyone really think that this makes any difference? I suppose when you've got no substantive issues to whine about a third of a point in interest gives you hope. What a joke. Is this what a campaign has come down to?

:shaking head: Swear to God, you'd think that these people would figure out that we learned this particular tell of theirs years ago.

The Fuzzy Puppy of the VRWC. I've been usurped!


Before Obama can speak about economics, why not ask him what really happened in the government money he wasted in his programs in Chicago?

Why the hoodlums and fraudulent housing lenders in Chicago remain the same? Why does Obama's district remain dilapidated?

Obama is a Corrupt Chicago Politician!

this is very important. I am an authority and Obama didn't receive a rate .375% lower than the market. It was much better than that. When the Washington Post compared his rate to the market, they took the market for loans up to 850k. His loan was 1.32 million. In other words, he had a riskier loan and yet received .375% better anyway. The reason that WAPO didn't compare to rates for loans his size is because loans his size don't have enough volume to have a market. That means they would be far higher than a loan of 850k. He likely received a loan a full percentage point or more lower than the average. This is very important because each eighth of a point represents roughly 100 dollars a month in savings. One hundred dollars a month is 36k over the life of the loan. A full percentage point is about 1000 dollars a month in savings. That is nearly 400k in savings over the life of the loan. This is scandalous and it is time the public saw the magnitude.
Here is my summary again of the full extent of Obama's corruption in real estate and it is plenty...

Was it over when the Germans bombed Pearl Harbor

The Provocateur

Thanks for pointing all this out. I knew that he had a "Jumbo" loan, and that fact was being overlooked in all the reports.

It is indeed a big deal that needs to be looked into. I think See?BS is planning a 60 Minutes episode on it right after the election.

Pluto, the Ninth Planet - Forever!

Either way, what the Washington Post did is compare apples to oranges. You can't compare his loan of $1.32 million to loans of 850k and then say his was .375% lower. His was .375% lower even though it was significantly more risky. That is what they continue to fail to mention. Imagine get a riskier loan at below market rates. That isn't just a pretty good deal but a steal. Again, what did Northern Trust get for offering such a loan?

Was it over when the Germans bombed Pearl Harbor

The Provocateur

I'm not an expert on these things, but it seems to me that his deal with Rezko to buy his house was as bad if not worse that this. As I understand it, he essentially got 300k off the price of his house because Rezko agreed to buy the property next door for a higher price. Isn't that basically a 300k gift to an elected US Senator? Isn't that a violation of the Senate Ethics rules?

corrupt puzzle of corruption by Obama in real estate. He got a sweetheart deal on his property. What did Rezko get? Well, the Boston Globe reported that Obama orchestrated lucrative contracts for private developers, Rezko included, to build low income housing. There is quid pro quo all over the place. That's why I wrote the summary because each of his corrupt moves is one piece of a larger puzzle of the typical Chicago politician.

Was it over when the Germans bombed Pearl Harbor

The Provocateur

just business as usual once one had reached those levels of power. Just like all his preferences and advantages that got him a Hahvud law degree and political prominence, he thinks it is actually the way business is done and that he deserved it all.

In Vino Veritas

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