Obama for America

 

Fact Check on Washington Post's Misleading Story on Obama Mortgage

July 02, 2008

RHETORIC: "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." [Washington Post, 7/2/08]

REALITY: OBAMA DID NOT GET SPECIAL TREATMENT AND RECEIVED HIS RATE JUST LIKE ANY OTHER CUSTOMER. HIS RATE IS CONSISTENT WITH RATES FOR OTHERS WITH HIS FINANCIAL PROFILE.

REALITY: NORTHERN TRUST DOES NOT HAVE A PROGRAM TO PROVIDE DISCOUNTS TO PUBLIC OFFICIALS

Unlike Countrywide Northern Trust Did Not Have A Program To Provide Discounts To Public Officials. "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." [Washington Post, 7/2/08]

REALITY: NORTHERN TRUST TAKES INTO ACCOUNT EVERY PERSON'S OCCUPATION AND SALARY

Northern Trust: Any Person's Occupation And Salary Would Be Taken Into Consideration For A Mortgage. "'A person's occupation and salary are two factors; I would expect those are two things we would take into consideration,' said Northern Trust Vice President John O'Connell. 'That would apply to anyone seeking to get a mortgage at Northern Trust.'" [Washington Post, 7/2/08]

REALITY: THE RATE OBAMA RECEIVED WAS CONSISTENT WITH INTERNAL NORTHERN TRUST RATES AT THE TIME

The Rate Obama Received Was Consistent With Internal Northern Trust Rates At The Time. "He added that the rates offered to Obama were 'consistent with internal Northern Trust rates at that time.' '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.'" [Washington Post, 7/2/08]

REALITY: CONSISTENT WITH NORTHERN TRUST POLICIES THE LOAN RATE WAS ADJUSTED TO ACCOUNT FOR A COMPETING OFFER

The Loan Rate, Consistent With Northern Trust Policies, Was Adjusted To Account For A Competing Offer From Another Lender. "Obama spokesman Ben LaBolt said the rate was adjusted to account for a competing offer from another lender and other factors. 'The Obamas have since had as much as $3 million invested through Northern Trust,' he said in a statement…The Obama campaign called the rate 'consistent with Northern Trust policies, and it reflected the base rate set for that period discounted to address the competition for the account and other opportunities, such as personal financial services, that the relationship would bring to Northern Trust.'" [Washington Post, 7/2/08]

RHETORIC: 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. [Washington Post, 7/2/08]

REALITY: OBAMA'S MADE THE THREE OFFERS ON THE HOUSE, INCLUDING THE HIGHEST; THE PRICE OF THE HOUSE WAS NOT CONTINGENT ON THE PRICE OF THE LOT

The Sellers Did Not Discount The Price Of The House Based On The Lot, Obamas Made Several Offers For The House Including The Highest. Bloomberg reported, "Burton said a campaign adviser discussed the sale with Wondisford by phone and followed up with an e-mail to Wondisford repeating his points. Wondisford responded: 'I confirm that the three points below are accurate,' according to the e-mail, provided to Bloomberg News and authenticated through records shown by the adviser. The e-mail says that the sellers 'did not offer or give the Obamas a 'discount' on the house price on the basis of or in relation to the price offered and accepted on the lot.' It also says that 'in the course of the negotiation over the sales price,' Obama and his wife, Michelle, 'made several offers until the one accepted at $1.65 million, and that this was the best offer you received on the house.'" [Bloomberg, 2/18/08]

Brown: "I See No Proof" That Obama Did Something Improper In The Purchase Of His House. Mark Brown wrote, "On the central question: Did Obama do something improper in the purchase of the house? I see no proof he did, other than that he had no business at all getting involved with Rezko in any personal financial transaction." [Chicago Sun-Times, 3/15/08]

Zorn: There Was No "Special Discount" And The Price Of The Lot Was Not Inflated. Eric Zorn wrote, "The Obamas did not get a special discount on the house" and "The sellers rejected two lower bids from the Obamas" and "The Rezkos did not pay an inflated price for the vacant lot."
[Chicago Tribune, 6/10/08]

AP: Obama "Has A Spotless Reputation" And "Has Been Accused Of No Wrongdoing Involving Rezko Or Anything Else." The AP reported, "Obama, who has a spotless reputation after 11 years in public offices, has been accused of no wrongdoing involving Rezko or anyone else." [AP, 1/22/08]