In the wake of the recent video scandals depicting ACORN employees counseling an undercover aspiring journalist posing as a prostitute with a human smuggling ring of underage child prostitutes, Bank of America is the latest to pull out of its partnership with ACORN, at least for now while investigations are underway.
According to a special marketing page of the ACORN Housing website that promoted the Bank of America partnership,
“Since 1990, ACORN Housing and Bank of America partnership has created over 55,000 new homeowners in low-and-moderate income neighborhoods. Our partnership is aimed to promote stronger neighborhoods and curb Predatory Lending in underserved markets.”
The loans financed through this joint partnership were offered at very low interest rates to certain buyers in specific underserved geographic locations. These programs were established with several banks through the department of Housing and Urban Development, after the Community Reinvestment Act required banks to stop the practice of redlining in 1977, and was then enhanced even further in 1993 under Clinton to allow 0% down payments, unsecured loans and stated income applications. That legislation required banks to apply the same lending criteria in all communities, regardless of the economic risk posed by particular areas based upon the location’s median income, crime rates, or prior property damage reports. (see a great video of the timeline of events from CRA to bust)
ACORN flourished in the face of such legislation, forming partnerships with banks and local community groups to provide housing, mortgage and financial counseling to residents of those underserved communities. The federal government provided funds directly to ACORN and to the banks, as well as through middle-tier organizations such as the Neighborhood Reinvestment Corporation, now known as NeighborWorks, which was established after the CRA specifically for the purpose of distributing funds on behalf of the government to groups like ACORN.
Bank of America issued a statement today, indicating that “Bank of America takes recent allegations made against Acorn and Acorn Housing Corporation employees very seriously.”
Just this past year, Bank of America provided ACORN with a $2 Million grant, despite all of the “End Corporate Excess” protests held at Bank of America locations by ACORN and the SEIU, along with other co-protestors.
Talk about biting the hand that feeds you. Something tells me Bank of America was probably anxiously awaiting this very opportunity to sever their forced ties with ACORN.
Considering the anticipation of additional videos that are expected to surface in the near future, multiple agencies are jumping on board in their agreement to launch investigations into ACORN’s activities. Even many Democrats are jumping onto the bandwagon, which implies that many suspicions about questionable campaign finance practices may not be “right-wing conspiracy” after all.
Bringing the investigating agencies up to date with the following list of those investigating or taking action against ACORN :
- Congress votes to block ACORN funding
- US Census Bureau (and Commerce Dept)
- US Dept of Treasury, Inspector General
- US Dept of HUD (see Judicial Watch FOIA filing for HUD docs)
- US Justice Dept Inspector General
- California Governor Schwarzenegger calling for CA state investigation
- FEC documents for ACORN
- U.S. House of Representatives Committee on Oversight and Government Reform, “Is ACORN Intentionally Structured as a Criminal Enterprise” report
- ACORN grants from the Corporation for National & Community Service
- And of course, ACORN’s internal investigation…of itself (we’ve seen previously how THOSE turn out)
Prior ACORN Posts on Liberty Chick:
- NEW UNDERCOVER VIDEO: ACORN & Your Tax Dollars Hard at Work…to Buy Homes for Brothels and Fund Human Smuggling
- House Committee Report: “Is ACORN Intentionally Structured as a Criminal Enterprise?”
- Rathke, ACORN, SEIU, the Tides Foundation, Oh My! The ACORN Hushup (Again).
- ACORN Part II: Anna Burger and the Change to Win story
- ACORN Part III: From Rathke in New Orleans to Ratner in New York
- ACORN Census Bureau Docs Obtained. Be Afraid.
- The ACORN Money Trail (a collection of all supporting hard-evidence documents & reports for all ACORN posts) Always Updated.
Other Related Posts & Links:
View “Burning Down the House: What Caused Our Economic Crisis“ on YouTube.
View prior Liberty Chick post “Big Government Caused Our Economic Crisis“.