Obama Got Sweatheart Home Loan: Pocketing Over $100,000

FEC Says Other Politicians Benefited Too So That Make It All OK. You can’t tell the hypocrites without a program on this one.

The Federal Election Commission then-Sen. Barack Obama received a below market rate mortgage loan in 2005 for a $1.65 million home in Chicago. While the FEC ruled that no laws were violated, the agency did confirm that Obama received the discount rate.
And the lending institution has acknowledged that Obama got preferential loan terms due to his position in the Senate.
The complaint was filed in July 2008 by Judicial Watch, a non-profit educational foundation that works to combat government corruption.
It stated that Obama received a home loan of $1.32 million at a rate of 5.625 percent from Northern Trust in Illinois, although the average going rate at the time, according to two different surveys, was between 5.93 and 6 percent.
Plus, The Washington Post, notes that “Obama paid no origination fee or discount points, as some consumers do to reduce their interest rates.”
The Post calculated that the sweetheart deal saved Obama $300 a month, or amounting to at least $108,000 over the life of the 30-year loan.
Judicial Watch contended that these preferential loan rates constituted an illegal corporate campaign contribution to Obama.
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,” according to a statement from Judicial Watch.
O’Connell told the Post: “A person’s occupation and salary are two factors; I would expect those are two things we would take into consideration.”
Judicial Watch’s complaint also cited a report from the Center for Responsive Politics that Northern Trust employees contributed $71,000 to Obama’s political campaigns since 1990.
The FEC based its decision to exonerate Obama largely on the fact that Northern Trust claims it provided preferential terms to other “similarly situated” but unnamed borrowers in addition to Obama.
The Judicial Watch statement concluded: “For the FEC to base its decision to excuse Obama on the fact that a few other unnamed borrowers also received sweetheart mortgages seems irresponsible . . .
“The fact is, Northern Trust’s [vice president] admitted Obama received the loan, in part, based on his position. This is improper and almost certainly constitutes an illegal campaign contribution (or gift). In our view, the FEC’s response is inadequate.”
The loan enabled Obama and his wife Michelle to buy a mansion with six bedrooms, four fireplaces, a four-car garage, 5 1/2 baths, wine cellar, music room, library, solarium and granite-floored kitchen. In addition that house deal involved manipulations by the notorious Tony Rezko.

Senator Chris Dodd (D) Connecticut has yet to find his mortgage documents showing that defunct mortgage giant Countrywide gave him sweetheart treatment too.
Now Obama and Dodd are shouting from the rooftops about greed and even fraud in the home mortgage debacle that has seen many home foreclosures due to stinker loan deals. There is plenty of hypocrisy to go around on this one.