Wednesday, July 2, 2008

Obama's Smelly House Deal

Today's Washington Post reports on the latest chapter in Barack Hussein Obama's housing embarrassments. If you recall, there was considerable attention a while back about Obama's criminal friend (one of several), Tony Rezko, who through his purchase and split of a property may have saved Barack Hussein Obama nearly $300,000 on his Chicago mansion (it's nice that this rich man, kind of like Ted (not John) Kennedy, whose concern is for the poor, lives in a six-bedroom mansion with four fireplaces and a four car garage).

Now, we find out that Barack Hussein Obama, like fellow Democratic Senators Dodd and Dorgan, got a sweet-heart deal on the financing of his home. He got a 5.625% rate when the average rate on a super jumbo mortgage was 5.94% with out points. So unlike the poor people he proposes to protect who have to pay at least one point (1%), and often more on their total borrowing, good ol' Barack Hussein Obama saved at least $13,200 on his modest $1.3 million mortgage origination and probably $300 a month on his payments on this loan for which he claims he received no special treatment!

It's bad enough we have U.S. Senators taking advantage of sweetheart deals, but when we have a candidate for President of the United States guilty of doing so, while he purports to be the 'change' element in the race, we can think of only one adjective to describe Barack Hussein Obama---HYPOCRITE!!!!

WE WONDER IF THE SENATE ETHICS COMMITTEE WILL ADD BARACK HUSSEIN OBAMA'S MORTGAGE DEAL TO THE ONES OF DOBB AND DORGAN THAT THEY CLAIM TO BE LOOKING AT.

For the article: http://www.washingtonpost.com/wp-dyn/content/article/2008/07/01/AR2008070103008_pf.html

2 comments:

Anonymous said...

Before we start point fingers at Obama, let's take a look at the facts, as illuminated here: http://www.fivethirtyeight.com/2008/07/most-irresponsible-piece-of-journalism.html

So Obama's rate was 30 basis points better than the average. However, the amount of the loan and the nature of the property are not the only factors that determine a mortgage rate. Another major consideration is the creditworthiness of the borrower. According to current rate quotes from myFICO.com, a borrower with very good credit can expect a mortgage rate about 30 basis points better than someone with pretty good credit, and a borrower with excellent credit can expect about a 50 basis point discount.

Unless the Washington Post has access to Obama's FICO score -- and unless it has rented an apartment to him, it probably doesn't -- it is missing a pretty important piece of information on what Obama's mortgage rate ought to have been. What was Obama's FICO score? I don't know, but considering that...

* Obama had just gotten a $2.27 million book deal from Random House -- about $1 million more than the value of the mortgage.
* The Obamas each had exceptionally secure jobs that paid them a combined annual salary of about $500,000 per year.

* The Obamas had just sold their condo, on which they had realized a $137,500 profit.

* The Obamas were prominent public figures whose political futures depended in part on maintaining a reputation for responsibility and trustworthiness.

* The Obamas are known to be relatively thrifty and have no credit card debt but substantial savings.

...I would think that the Obamas were exceptionally creditworthy. So indeed, Obama received a "discount" -- the same discount that any borrower in his position would have received.

Eric said...

What a ridiculous assertion. I can't believe the Washington Post gets away with printing such dumb stories without even a modicum of research to back it up. A simple search on myFico.com shows that 30 points below average is actually very standard for someone with very good credit. If you have excellent credit, you should be getting a 50 point discount. I think it is safe to assume that the Obamas have pretty good credit, although the Washington Post didn't even bother to ask. To quote Nate Silver, "This article was neither smart nor accountable. It's the equivalent of noting that Alex Rodriguez has a batting average 40 points better than the league average, and using that to infer that the umpires were biased in his favor."