NH GOP - Chairman Responds to Barack Obama's Sweetheart Mortgage Deal

Calls on Obama to explain how he secured such a deal

Concord, NH – New Hampshire Republican Party Chairman Fergus Cullen issued the following statement regarding today's Washington Post report that Sen. Barack Obama received a sweetheart mortgage rate for his Chicago mansion:

“The revelations that Senator Obama received a mortgage deal on his Chicago mansion that would be unthinkable for the average resident of Illinois or New Hampshire fits a disturbing but utterly consistent pattern of behavior from him and his campaign.

“While Senator Obama says he understands the economic difficulties that Americans are experiencing due to falling home prices and increased fuel costs, the reality is that this sweetheart mortgage deal would not have been made to any average homebuyer.

“The People of New Hampshire deserve an explanation from Sen. Obama on how he was able to secure such a deal and how it is consistent with his rhetoric of understanding the economic pain that many American households are feeling.”


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)