Guess who joins Democrats Chris Dodd of Connecticut and Jeb Conrad of N.D. as being on the list of those who received questionably highly favorable home loans? None other than the Presendential nominee Barack Obama! Obama purchased a 1.65 million dollar mansion in Chicago through a “super, super jumbo” loan he received from Northern Trust Bank in Illinois, the Washington Post reports.

The portion of the money financed through the lender ($1.32 million) was offered to the Obamas at an unusually low discount interest rate locked in at 5.625 percent over the life of the 30-year fixed-rate loan, which was below the average of what a typical Chicagoan pursuing a similar low loan rate received at the time. Obama defends the loan by stating that he and his wife have a "right" to this low-interest rate since they “have since had as much as $3 million invested through Northern Trust." Didn't that word "right" pop up before with Obama? Oh yes, "Reverend Wright!" Whoops! I am digressing. Let's get back to Obama's loan.

Of course we believe Obama. Obama would never accept the loan as a trade-off for political favors. Wait a minute ---- Didn't Obama fire his VP Vetting Team Chief James Johnson because of criticism over Johnson's personal loan deals with Countrywide? Oh I get it --- with Obama --- it isn't do as I do --- it's do as I say. So, this gives Obama the right to play holier than thou with Johnson while Obama keeps his sweeetheart deal of a loan with Northern Trust. It is so wonderful to realize that Obama and Michelle are being taken care of while so many everyday Americans are losing their homes. We wouldn't want the Obamas thrown out of their mansion because of a high interest loan ---- would we?

Okay all you liberals. What is your defense of Obama's special consideration loan?

call me cynical...but why was i not surprised?

This is right wing propaganda, twisted and skewed.

Very LAME.

1956deluxe......

Okay if this is twisted and skewed, then why don't you give us what you consider the real facts? What was the rate on Obama's loan? What was the rate on others in Chicago pursuing similar loans? Of course, you can't respond because my facts are correct.

You and the Washington Post clearly want to characterize this as a serious story.

In this case, there's less here than meets the eye. Nearly four years ago, Obama received a 30-year fixed rate of 5.625 percent. The average at the time was 5.93 percent. As such, it was a good deal, but not a sweetheart deal. Obama had received competing offers from another lender and, as a result, got a more competitive rate. As Oliver Willis, who used to work for a mortgage company, put it, "The idea that the lender gives a few fractions of a percent to a borrower of a jumbo loan is about as common as breathing air." I personally got a rate of 5.75% on my home loan about that same time.

As controversies go, this is pretty thin. Obama got a legitimate mortgage, at a competitive rate. He didn't try to conceal anything, and even posted the records related to his house purchase on his website.

As the Chicago Tribune's Swamp blog concluded, "Obama's political opponents will certainly try to make something out of this story. But contrary to the famous adage, not all smoke means there's a fire."

Most news organizations have dropped the story you cite on your thread as they have seen it has no merit. Yet, you continue to spread this propaganda as though it were newsworthy.

Very lame.

It is not lame; it is newsworthy. No matter how you spin it, Obama received a lower rate. Over a thirty-year period a fraction of a percentage point adds up to quite a bit of money. Do the math!

It appears that you did not read or comprehend the text I posted. I will NOT do the math as there is nothing to calculate.

You need to get educated on the truth and not be so afraid of change.

Got to go --- am going out for the day. To you and everyone else on the site ---- have a good Holiday!

Desperate Republicans

Oh, if this were a conservative Republican, you would be stomping all over the place! This action of obama's just proves how corrupt and deceitful he truly is. I am positive that as time goes by, more of his 'skeletons' will be popping out of the closet(s).

And, no, the news media has NOT dropped the coverage of this 'right' to have a 'special favor in return for' story. One must get away from the left wing liberal news media and listen to the facts broadcast by other well qualified stations.

Lindyy

Lame, prejudiced democrats.

Change for what?! I 'have a plan' but it is not worked out yet change. The "change" but no one knows specifics of what the 'change' is?

Darn right I am afraid of what obama considers 'change.' Put this man in office and say goodby to the USA.

He started out last year by mouthing off to one of our biggest ally's, the Prime Minister of Australia.

He thinks he can sit down and have 'tea and crumpets' with Mahmoud Ahmadinejad of Iran.

"July 2, 2008
Today, The Washington Post Reported That Obama Received A Sweetheart Mortgage Deal For His Chicago Mansion:

Obama Received A Discounted Rate On His $1.32 Million Mortgage For His Georgian Mansion In Chicago. "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." (Joe Stephens, "Obama Got Discount On Home Loan," The Washington Post, 7/2/08)

"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." (Joe Stephens, "Obama Got Discount On Home Loan," The Washington Post, 7/2/08

Obama's Discounted Rate Could Have Saved Him More Than $300 Per Month. "Compared with the average terms offered at the time in Chicago, Obama's rate could have saved him more than $300 per month." (Joe Stephens, "Obama Got Discount On Home Loan," The Washington Post, 7/2/08)

The Obamas Secured Their Discounted Home Loan Despite The Fact That They Had "No Prior Relationship With Northern Trust When They Applied For The Loan." "The Obamas had no prior relationship with Northern Trust when they applied for the loan. They received an oral commitment on Feb. 4, 2005, and locked in the rate of 5.625 percent, the campaign said. On that date, HSH data show, the average rate in Chicago for a 30-year fixed-rate jumbo loan with no points was about 5.94 percent." (Joe Stephens, "Obama Got Discount On Home Loan," The Washington Post, 7/2/08)

NOTE: Obama Also Has Received $71,000 In Campaign Contributions From Northern Trust Employees. "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." (Joe Stephens, "Obama Got Discount On Home Loan," The Washington Post, 7/2/08)

FLASHBACK: Obama Paid $300,000 Less Than The Asking Price For His Mansion, While Tony Rezko's Wife Paid Full Price For A Vacant Lot Next Door On The Very Same Day. "Two years ago, Obama bought a mansion on the South Side, in the Kenwood neighborhood, from a doctor. On the same day, [Antoin 'Tony'] Rezko's wife, Rita Rezko, bought the vacant lot next door from the same seller. The doctor had listed the properties for sale together. He sold the house to Obama for $300,000 below the asking price. The doctor got his asking price on the lot from Rezko's wife." (Tim Novak, "Obama And His Rezko Ties," Chicago Sun-Times, 4/23/07)

The Seller Of Obama's Home "Wanted To Sell Both Properties At The Same Time." "On the same day Obama closed on his house, Rezko's wife bought the adjacent empty lot, meeting the condition of the seller who wanted to sell both properties at the same time." (Brian Ross and Rhonda Schwartz, "The Rezko Connection," ABC News' "The Blotter" Blog, abcnews.go.com, 1/10/08)

Obama Later Purchased A Portion Of Rezko's Land For $104,500; It Was Valued At $40,500. "Later, the Obamas bought a 10-foot-by-150-foot piece of the lot for $104,500. An appraisal put the value of the strip at $40,500, a spokesman said, but Obama considered it fair to pay one-sixth of the original price for one-sixth of the lot." (Peter Slevin, "Obama Says He Regrets Land Deal With Fundraiser," The Washington Post, 12/17/06)"

As you can see, obama has a history of funny-bunny real estate financial transactions.

Lindyy

Oh right? You mean like sick willie didn't have sex????

Reality check!!!!

OH, so very true! That is why so many teens think oral sex is NOT sex.

Lindyy

Good job Lindyy!

This one really gets under the skin of the Obamanites.


http://abcnews.go.com/Video/playerIndex?id=5205874

Obama was 100% for public funding when he was afraid that he clouldn't raise enough money to defeat Hillary or the republicans. Now that he has the money he is against it. And now he says public funding is broke. Didn't he know that when he ardently supported it?

Like Faux news?

I have an issue with any station that paints granddaddy insane McCain as a more viable candidate than Obama. A trigger-happy PTSD-riddled Vietnam war survivor or a smooth-talking Chicago politician?

Ick. Suddenly I'm not so keen on voting now.

The topic is about obama!

Lindyy

The undoctored Story in its entirety as reported by the Chicago Tribune!!!

Notice first of all that what the previous poster reports as "a history of funny-bunny real estate financial transactions," is actually just one andthe loans for the two properties were from two entirely different Loan Companies. (No connection)

of course the Republicans wont point that out for you,

but I will!

OK so lets begin. (shall we?)



From the Tribune archives: Rezko owns vacant lot next to Obama's home
(By Ray Gibson and David Jackson | Tribune staff reporters)

Dated: November 1, 2006 (

notice this is not a new story the Pubs are spreading, just newly doctored!)

When Sen. Barack Obama decided to buy a stately $1.65 million home last year on Chicago's South Side, Antoin "Tony" Rezko and his wife wasted no time. The same day the Obamas closed on the house, the Rezkos closed on the purchase of the adjoining vacant lot, which once was the estate's lush side yard.

In normal circumstances, the two real estate transactions probably wouldn't have raised an eyebrow. There is, after all, nothing illegal or untoward about an aggressive developer buying hot property next door to a rising political star.

But these are not normal times for either Obama or Rezko, two longtime friends whose fortunes have taken sharp turns in opposite directions.

Illinois' junior U.S. senator has become a political star, riding a surge of popularity that has made him a top potential candidate for the 2008 Democratic presidential nomination.



Rezko, meanwhile, has achieved notoriety of a different sort. In October, he pleaded not guilty to federal charges involving pay-to-play allegations that surround Illinois Gov. Rod Blagojevich's administration.

Now the hows and whys of a real estate deal, and a train of subsequent transactions, are raising questions about the relationship between the two men, as Obama struggles to distance himself from Rezko, and Rezko strives to stay out of prison.

Over the last 16 months, as they jointly worked to improve their side-by-side properties, the two men entered an ongoing series of personal financial arrangements. Because Rezko was widely reported to be under federal grand jury scrutiny, Obama said he was careful to ensure their transactions were ethical and proper.

"My working assumption was that as long as I operated in an open, up-front fashion, and all the T's were crossed and I's were dotted, that it wouldn't be an issue," Obama said. "If it was a neighbor I didn't know at all, would I have behaved any differently? I felt like the answer was no."

Obama added: "Tony has been a supporter of mine since my first race for state Senate."

And he said: "I haven't been involved with him in any legislative work whatsoever or any government activities of any sort."

For years, it's been Rezko's practice to befriend up-and-coming political figures, from Blagojevich to the godson of former County Board President John Stroger. Rezko often weaves those political friendships into business ventures.

Rezko first reached out to Obama in about 1990 when the future senator made headlines as the first African-American president of the Harvard Law Review. Rezko and two real estate partners called out of the blue to offer a job building inner-city homes.

"I said no, but I remained friendly with all three of them," Obama said. "All three of them remained great contributors of mine."

Over the years Rezko and Obama shared lunch "once or twice a year, although that's just an estimate," the senator said. As couples, the Rezkos and Obamas dined perhaps "two to four times ... in the time that I've known him."

One of Illinois' most prominent local Democratic fundraisers, Rezko and his companies donated at least $8,000 to Obama's state Senate campaigns and $11,500 to Obama's federal fund. (Obama has said he will divest those federal donations.) Rezko also hosted a 2003 event to boost Obama's campaign fund.

Obama and his wife were already flush with success when they went house hunting last year. Their combined income--bolstered by payments for his best-selling autobiography and advances for future books--topped $1.67 million. His wife, Michelle, had recently been promoted to a $316,962-a-year position as vice president at the University of Chicago Hospitals.

House has 4 fireplaces

They were drawn to a 96-year-old Georgian revival home that has four fireplaces, glass-door bookcases fashioned from Honduran mahogany, and a 1,000-bottle wine cellar, according to real estate listings and an interview. The house and the adjoining yard--which is surveyed as a separate lot--are rimmed by 12-foot-tall evergreens.

In the past, the two lots had been sold as a single estate. But in 2005, the owners listed the two parcels for sale separately.

Obama said his family's real estate broker brought the house to his wife's attention. He said he discussed the house with Rezko but isn't sure how Rezko began pursuing the adjacent lot. But Obama raised the possibility that he was the first to bring the lot to Rezko's attention.

"I don't recall exactly what our conversations were or where I first learned, and I am not clear what the circumstances were where he made a decision that he was interested in the property," Obama said.

"I may have mentioned to him the name of [a developer and] he may at that point have contacted that person. I'm not clear about that," Obama said.

The neighborhood wasn't new to Rezko, whose companies had purchased numerous South Side properties.

Obama said he and Rezko had no prior agreement about Rezko's plans for the garden parcel.



"My understanding was that he was going to develop it," Obama said.

It was "already a stretch" to buy the house, Obama said, so the vacant lot was not affordable for his family.

The Obamas bought the house in June 2005 for $1.65 million--some $300,000 less than the asking price--and secured a $1.32 million mortgage from Northern Trust.

Rezko's wife, Rita, bought the adjoining lot the same day, paying the full $625,000 asking price with the help of a $500,000 mortgage from Mutual Bank of Harvey. The Rezkos declined to comment for this article.

The Obamas wanted a fence between the parcels. They hired an attorney and architects within a month of their purchase to seek guidance about the fence from the Commission on Chicago Landmarks.

Michelle Obama had served on the commission from 1998 to March 2005, and she contacted the staff about the fence. On July 15, 2005, a city landmarks deputy commissioner, Brian Goeken, sent a long e-mail to Michelle Obama saying he had gone out one evening to look at the house. He listed suggestions for obtaining a permit for the fence.

Goeken declined to comment for this article.

Over the next six months, the Obamas' architect had several conversations with city officials about whether to relocate portions of the existing fence or build a new, compatible one.

Architect Wil Taubert said in an interview that he dealt only with the Obamas.

"I knew somebody owned the corner but I never asked who it was," Taubert said.

Though the Obamas laid the groundwork, Rezko agreed to build and pay for the $14,000 fence that runs along their property line.

Fence required by city

Obama said Rezko paid for the fence because a city ordinance compelled Rezko to fence the line between his vacant lot and their house. He added that both men agreed there were broader reasons for a fence.

"I had had a conversation with him in which I indicated that it probably was important for us to have a separation of the properties because the property was all one piece, it wasn't really demarcated, and I did think that it was important for there not to be any perception whatsoever that somehow I was having any use of their property," Obama said.

"Partly because Michelle had already been on Landmarks, partly because we're well-known neighbors ... I felt it was important to make sure that all the T's were crossed and I's were dotted in terms of compliance with landmarks," he said. "I thought it would be embarrassing if somehow whatever fence was erected didn't comply."

Obama said he funded the architectural and legal work because "if somebody walked by, they would assume that it was on my property and so it was important from my perspective that it be done right."

Obama said he didn't know exactly how much he spent on the architectural, landscaping and legal work that enabled Rezko to acquire a fence permit in January 2006.

"My suspicion is that it would probably be a couple of thousand dollars. On the architectural side it might be more," he said. "I think legal fees were a couple thousand."

To preserve the aesthetic balance, Obama also wanted to put some space between his house and the proposed fence, so he personally asked Tony Rezko if they would sell a portion of their lot without restricting their ability to build in the future.

"I told them if you can spare another 5 or 10 feet, I'd be happy to purchase it from you," Obama said. "They came back and said they could sell us up to 10 feet."



Using a standard formula, Obama's appraiser estimated the 1,500-square-foot portion at a market value of $40,500.

But Obama felt it would be fair to pay the Rezkos $104,500, or a sixth of their original $625,000 purchase price, because he was acquiring a sixth of their land. The sale closed in January 2006.

That month, the fabricator hired by Rezko began building the fence, which sits immediately on top of the property line. Five months later, in May, Advance Welding & Construction sent one of Rezko's companies a $14,300 invoice that stated, "All work is completed."

Obama said he and his family have never used the Rezko yard--even for a brief picnic or Frisbee game. But Obama said he pays his landscaper to mow Rezko's 7,500-square-foot yard.

A person can't enter the Rezko lot from the street--but Obama's groundskeeper gets in through the gate that opens from Obama's lot.

Service mows both lawns

"Right now my landscaper who comes and does all my work, I have asked him to go ahead and mow the lawn on the other side," Obama said.

"My intention was to have the landscaper figure out some pro-rata cost for that mowing and send that bill to Rezko," Obama said. "I just haven't had time to do it."

The lawn-mowing bill that he plans to send Rezko "can't be more than three or four hundred, a thousand dollars," Obama added.

The bill for the new fence has yet to be paid, according to Advance President Raymond Oshana and Michael Sreenan, an attorney who represented the Rezkos in transactions pertaining to the fence and garden lot.

That may be because Tony Rezko is embroiled in debt and business difficulties as well as legal trouble. The federal charges against Rezko include allegations that he defrauded a lender to keep one business venture afloat.

But the garden lot may yet be developed.

Sreenan and a Rezko company accountant in October formed a corporation that Sreenan said will try to purchase the lot from Rita Rezko and build there.

While no sale has taken place, "We're hoping to move ahead on development," Sreenan said.

It was premature to discuss details, Sreenan said, but one thing was sure about this potential venture: "It will be entirely separate from Mr. Rezko."

----------

http://www.chicagotribune.com/news/local/chicago/chi-0611010273nov01,1,2852476.story?page=3
rgibson@tribune.com

dyjackson@tribune.com


Now you know as they say,
THE WHOLE STORY!