Why Did Bank of America Pay ACORN?
From Pajama media
By Tristan Yates
On September 29, the article “Bank of America Pulls ACORN funding [1]” appeared on the CNN political ticker. While the short piece thankfully does list some of ACORN’s recent scandals, such as the Breitbart video investigation and the voter registration fraud, it didn’t answer the question that was surely on every reader’s mind: What exactly was Bank of America paying ACORN for?
Let’s not fault writer/editor Amy Sabha for not addressing the topic, as she was clearly very busy working on this video in which she goes up and down [2] the UN escalator.
Instead we can just go to the Bank of America community website [3], which notes that the firm works with ACORN in more than 20 cities to provide “special mortgage products.” Or we can go to the ACORN Housing website, whichdescribes a program [4] that produced $246 million in mortgages from Bank of America with “flexible underwriting and discounted pricing.” Or this page [5], which describes a program with low down payments, no private mortgage insurance, no cash reserve necessary, and flexibility on income requirements, such as being able to include public assistance.
Yes, ACORN and Bank of America joined forces to become the ultimate subprime lender. So much for the organization’s lofty social justice rhetoric.
Yet there’s more. In February, right after the inauguration, Bank of America reported that it had made $2 million in national grants to ACORN Housing Corporation between October 2007 and June 2009 (planned). Only a handful of conservative outlets (Michelle Malkin [6], for example) picked up the story.
It’s easy to pick on Bank of America. The firm has received more than $45 billion in taxpayer money during the bailouts, was fined for securities fraud [7] — specifically withholding information — in the purchase of Merrill, paid out millions in bonuses [8], and even introduced bank accounts for illegal aliens a few years ago, a sound practice that surely had nothing to do with their financial troubles today. They are an embarrassment to an industry that has little shame left.
Still, they’re not the only ones that gave millions to ACORN, and we should expect further announcements in the coming days [9]. JP Morgan Chase is already under fire, identified more than a month ago as a multi-million dollar ACORN donor or partner by the National Legal and Policy Center. (Story picked up by CNN? Of course not — try Glenn Beck and Judge Andrew Napolitano [10].)
In this sordid tale, the unsympathetic banks are more victims than villains. The Community Reinvestment Act gives groups like ACORN considerable power over the institutions. It can accuse them of economic discrimination against minorities, forcing them to defend their business practices and reputations against de facto charges of racism. The penalties can be hefty fines and even blocked mergers.
ACORN perfected this “pay for protection” business model in the 1990s. And it is a business. While some of the ACORN organizations are non-profit, others are not, which means that by working together they can get the best of all worlds: political actions, union-style organization, tax-exempt status, privacy, and profit.
In 1994, ACORN sued Citibank [11] under the Community Reinvestment Act alleging racism. Their lawyer? None other than our post-racial president. In 1998, St. Louis ACORN was able to extract concessions from Mercantile in advance of a merger. Most banks paid attention and soon understood that it was easier to partner with ACORN than to fight them.
A few did fight back. In 2004, after being accused [12] of predatory lending by ACORN, Wells Fargo came out swinging [13]. But three years later, they settled a class action lawsuit [14] in California for $6.8 million. At some point the ACORN payments just became the cost of doing business.
Subprime lending put millions of unqualified homeowners into houses they couldn’t afford. This pushed up home prices for other purchasers. The housing bubble became an investment bubble once Fannie and Freddie and the investment banks joined the party. The twin bubbles popped, taking down the banks, the markets, and the economy.
It’s all easy to understand, unless you’re a progressive whose entire belief system depends upon not understanding it.
Subprime lending isn’t specifically illegal, but it creates plenty of opportunities for mortgage fraud. This “undocumented income,” as it is euphemistically called, creates a path to home ownership for people who aren’t otherwise qualified — including both criminals and illegal aliens.
All of the incentives were there for ACORN to commit this fraud, and if the investigations are ever completed, the results won’t surprise anyone [15]. The Breitbart videos made it very clear that ACORN was ready to facilitate just about any financial transaction required.
The New York Times says they were a step behind the ACORN story, as they were with the Van Jones story. One would think they would have been more careful, given allegations in March that they spiked a story on Obama’s ties to ACORN. (Michelle Malkin, again [16].)
Perhaps at some point they will understand that this isn’t a story that has come and gone, allowing them to wring their hands over having missed it. It’s a story that’s here to stay, and there’s at least fifteen years of ACORN corruption to sift through — and that means fifteen years of business partners. At what point do they start reporting?
For example, in February 2008, ACORN partnered on a foreclosure prevention program with Countrywide, the same lender that gave the sweetheart deal to Chris Dodd and then lost the associated documentation. Countrywide is now a Bank of America company. We’ll have to ask CNN or the Times whether that’s newsworthy.
We can be thankful of one thing, at least — ACORN’s not in charge of teaching our children.
Well, unless they happen to attend the ACORN High School for Social Justice [17]. Thanks, New York City Department of Education. (More here [18]. Also, an excellent source on ACORN Housing’s business model at the Consumers Rights League report [19].)
October 2nd, 2009 at 7:13 pm
With unemployment at a 26 year high, the New York Times has revealed that immigration authorities at the U.S. Citizenship and Immigration Services have undertaken preparations for issuing visas to 11-18 millions (?) My guess over 20 million + illegal aliens who would be granted–BLANKET AMNESTY–if Congress is–able–to pass immigration reform legislation. Now is the time to remind your Senators and Representatives at 202-224-3121, that we demand they do NOT enroll on to this ill conceived abomination. Into our country at least a million law abiding newcomers come annually, clutching their entry visas; many waiting for years for a chance at the American dream. But the thrall of lobotomized Democrats are in for a hard lesson, including some Republican business enthusiasts, who think it’s–going to be a simple solution approving this financial calamity.
This illegal alien mess has been methodically created by both parties for decades. But monumental amounts of the US population do not agree with this outcome. LaRaza, a radical anti-Sovereignty organization, will transform the US into a third world dumping ground yet?
All we need is mandatory E-Verify to remove from every honest business, workers who came here illegally; those who don’t will suffer severe penalties. This is a murky back-door way for hard-line Liberal Democrats to sneak past all verification measures, which would approve a path to citizenship for lawbreakers thus giving them access to–YOUR–health care? All Americans GOOGLE–NUMBERSUSA, to uncover the deceitful way they plan to cheat all legal workers and citizens? America is already on the road to irreversible OVERPOPULATION. Do all the people out their who are suffering from a compassion syndrome, believe–ALL–Americans want to pay even higher taxes to support corporate welfare, for the millions they have already hired? I don’t think so?
This is one of the cloaked agendas of The Council of Foreign Relations to intensify the unfettered inflow of destitute peoples into North America. We already spend more money across the globe, than anyone else? Yet the United Nations is never satisfied. We already have a negative-dollar free trade treaty, which has seen the disappearance of our manufacturing industries. To me Globalism and internationalism are dirty words, and when Americans open their eyes it might be too late? Our country is being emasculated by the illegal immigration and the financial support poured out by unaware taxpayers. America is like the Greek god “Atlas” supporting the world and its issues? That is exactly what we are doing–SUPPORTING THE WORLD? For the record 15 Democrats are already discussing your fate, as they strife to undermine immigration enforcement amendment.
1. To permanently reauthorize E-Verify? 2. To complete the 700 miles of border fencing? 3. To continue and not rescind the No-match-letter program, that HS Napolitano has closed down. 4. Grassley’s amendment to allow all businesses that use E-Verify to run all of their current employees through the E-Verify system. Go see who the traitors are to our protection of the border at NUMBERSUSA.
Do you know what the state of our highways or underground utilities? Each state has 30 year underground causeways of irreparable water and sewage pipes that our government has ignored. Again I say watch “The Crumbling of America” on the History channel. Each year our bridges and dams are deteriorating, so they do hasty repairs, but many are seeing deployable erosion that cannot be fixed, because the state has not enough money? Yet the Democrats want to cause an avalanche of impoverished people, who will want to bring in even more family members. Who’s going to recompense for them? Then even more will break through the fence, enter as a tourist or slip into America via the Caribbean? The onslaught will never end and our reservoir of cash is finally exhausted.
I have a hard time paying my taxes, without paying more for the impecunious, uneducated who slip into our sovereign country bring the criminals, the handicapped and elderly immigrants. Who pays for my family and kids, the house payment, health care and car? NOT THE BLOODY TRAITORS IN WASHINGTON ON BOTH SIDES OF THE AISLE WHO KEEP PILING ON HIDDEN TAXES TO SUBSIDIZE ILLEGAL FOREIGNERS AND FAMILIES FROM OTHER COUNTRIES. I’LL EVEN GO FOR PEOPLE WHO HAVE SKILLED JOBS AND SOMETHING TO OFFER, BUT NOT FOR JUST ANYBODY WHO TAXPAYERS HAVE TO SUPPORT? Learn more about corruption at JUDICIAL WATCH. Learn about POPULATION GROWTH at CAPSWEB.