Posted on 10/31/2008 4:30:10 AM PDT by William Tell 2
Obama got a mortgage for more than he could afford to pay. The same kind of loan he condemns Wall St for making.
http://www.thebulletin.us/site/index.cfm?newsid=20183830&BRD=2737&PAG=461&dept_id=576361&rfi=8
Same as his college loan, he’s not the one footing the bills.
Despite the insinuations of the author, this loan is a fairly tame one, and would likely still be available today, after some serious tightening of underwriting standards, and even if the guy’s name was “Joe the Plumber” (but with similar income and prospects) rather than B.O.
The Pritzker story is more interesting.
http://www.washingtontimes.com/news/2008/oct/29/ex-subprime-bank-executive-finances-obama/
LET ME SEE IF I HAVE THIS STRAIGHT:
HIS FATHER WAS A KENYAN, MOSLEM, BLACK. WE HAVE SEEN PICTURES OF HIS AFRICAN “FAMILY.
HIS MOTHER IS A KANSAN, ATHEIST, WHITE.
HIS FATHER DESERTED HIS MOTHER AND HIM WHEN HE WAS VERY YOUNG AND WENT BACK TO HIS FAMILY IN KENYA.
HIS MOTHER MARRIED AN INDONESIAN MUSLIM AND TOOK HIM TO JAKARTA WHERE HE WAS SCHOOLED IN A MUSLIM SCHOOL.
HIS MOTHER RETURNED TO HAWAII AND HE WAS RAISED BY HIS WHITE KANSAN GRANDPARENTS.
HE LATER WENT TO THE BEST AND COSTLIEST SCHOOLS, HOW?
HE LIVES IN A $1.4 MILLION DOLLAR HOUSE THAT HE ACQUIRED THROUGH A DEAL WITH A WEALTHY FUND RAISER. HOW?
HE “WORKED” AS A CIVIL RIGHTS ACTIVIST IN CHICAGO- THE PRESIDENCY IS NOT A CIVIL RIGHTS POST NOR IS IT SUBJECT TO AFFIRMATIVE ACTION SET ASIDES.
HE ENTERED POLITICS AT THE STATE LEVEL AND THEN THE NATIONAL LEVEL WHERE HE HAS MINIMAL EXPERIENCE.
HE IS PROUD OF HIS “AFRICAN HERITAGE” BUT IT SEEMS THAT HIS ONLY AFRICAN CONNECTION WAS THAT HIS AFRICAN FATHER GOT A WHITE GIRL PREGNANT AND DESERTED HER. I DIDN’T KNOW THAT SPERM CARRIED A “CULTURAL” GENE. WHERE IS THE PRIDE IN HIS WHITE CULTURE?
FOR OVER TWENTY YEARS HE REGULARLY ATTENDED AN “AFROCENTRIC” CHURCH THAT HATES WHITES, HATES JEWS, AND BLAMES AMERICA FOR ALL THE WORLD’S PERCEIVED FAULTS AND THEN REPEATEDLY COVERS UP FOR THE PASTOR AND THE CHURCH
HE CLAIMS THAT HE COULD NOT CONFRONT HIS PASTOR BUT HE WANTS US TO BELIEVE THAT HE CAN CONFRONT NORTH KOREA AND IRAN.
YES, I THINK I SEE HOW HE COULD BE A UNITER AND BRING US TOGETHER.
I THINK THE HOPE IS THAT HE HOPES NO ONE WILL ASSEMBLE THE PIECES.
You say this mortgage is fairly tame?
That is not the impression I got when I spoke to the finance experts - one of whom said quite bluntly “ You couldn’t get that mortgage.”
For obvious reasons they would not go on the record.
So tell me what is your experience as a mortgage broker/finance expert/bank loan officer?
Besides you admit that it would require serious tightening of underwriting standards - which is the point of my piece.
Do you not understand this?
Based simply on the fact that Zero paid $350,000 below market for the property says that the loan was secure. Probably didn’t even need to pay PMI for a no down payment loan, based on the appraisal.
He didn’t pay $350K below market.
He paid $300 less than asking. Do you always pay list price?
I guess you also pay 40% to 50% of your gross monthly earnings for your mortgage?
The fact is he was earning $200,000 per year for a $1,300,000 mortgage. These are very loose underwriting standards. The kind of standards he is complaining about.
Two experts confirmed this.
This is really not a difficult concept.
Please. Royalty (or deity: take your pick) cannot and should not be bound by the rules, laws, or expectations applicable to mere peons. Obama MAKES the laws: it is His grateful servants (who, after all, are blessed to have such an enlightened ruler) who should obey them, not the Master! How many times does God violate “Thou shalt not kill” in the Old Testament?
Please don’t be condescending.
Do you always list your properties for 20% over apprasial? No? Then the asking price was probably close to what the home was appraised for. Therefore Obama paid $300,000 less than the appraised value of the home, which is what I stated.
Any loan will start with the appraised value when calculating LTV percentage for a mortgage.
Thank you.
I list properties for whatever I think they will sell for plus a certain percentage more.
You don’t?
Appraisals come after the mortgage is applied for not before.
I am not being condescending you are being contentious. Your argument is not with me - providing you are not an Obama supporter. So why try to start one? Especially one that doesn’t make sense.
Look folks, JUMBO LOAN RATES ARE ALWAYS HIGHER THAN STANDARD MORTGAGE RATES! They are usually .5% to 1% higher than regular mortgages. It is another way of sticking it to the rich.
Jumbo Loans, at the time of the Obama SPECIAL FANNIE MAE FAVORED LOAN were any loans that were for more than $417,000. Period! Jumbo loans are in excess of that amount and have ALWAYS had a higher rate. Even today they have a higher rate.
Obama got special treatment and I personally believe this was an indirect payoff for his participation in the Fannie Mae and Freddie Mac fraud that he is also the #2 campaign contribution recipient for!
“So tell me what is your experience as a mortgage broker/finance expert/bank loan officer?”
19 years of doing actuarial analysis of mortgage guarantee insurance experience on portfolios of roughly half a million loans from all 50 states, using histories of several million loans from 1970’s to the present.
The mortgage described in your posting would probably rate about a 3 or 4 on a Risk scale of 1 to 10, so yes, it’s relatively tame stuff. In the current distressed housing market environment it would probably be close to the outer edge of acceptable exposures, but at the time it was taken out, it would be fairly tame, compared with all the stuff that was coming through “approved” or with “extended approval” standards to satisfy the regulatory demand for “more loans to under-served communities”. Ironic that these same under-served communities are screaming bloody murder over having been so “thoroughly served” that their neighborhoods are now filling up with foreclosure-abandoned houses. They should direct their beefs to their congress members.
Since I don’t know your credit profile, it’s hard to assess what your local expert’s comment about your inability to qualify for such a loan means. Marginal credits wouldn’t get it now, for sure, and “marginal” is being defined more and more tightly as time passes, especially in declining markets.
The mortgage described in your posting would probably rate about a 3 or 4 on a Risk scale of 1 to 10, so yes, it’s relatively tame stuff. In the current distressed housing market environment it would probably be close to the outer edge of acceptable exposures, but at the time it was taken out, it would be fairly tame, compared with all the stuff that was coming through “approved” or with “extended approval” standards to satisfy the regulatory demand for “more loans to under-served communities
So you answered your own question and validated the point of my article. That is to say Obama is campaigning against the very type of practice from he which he received a benefit.
“So you answered your own question and validated the point of my article. That is to say Obama is campaigning against the very type of practice from he which he received a benefit.”
Not really. Risk grades 3 and 4 are even now being originated and insured, it’s just that the higher grades have mostly disappeared, especially in declining markets (now roughly 80% of all markets). There are plenty of much stronger arguments that implicate both Obama, and other complicit Democrat legislators in the bad public policy decisions that led to the mortgage market meltdown, but apparently you would rather harp on this weak one that those who are familiar with the mortgage business will dismiss as uniformed axe grinding. So be it.
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