More News about Democrat Corruption and Fraud

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[figures, these corrupt lying vile sleazy democrats crusade for wealth
redistribution, but won't pay taxes. typical ]

http://townhall.com/columnists/AmandaCarpenter/2008/10/27/acorn_owes_millions_in_taxes


Monday, October 27, 2008

ACORN Owes Millions in Taxes
by <acronym title="Amanda Carpenter">Amanda Carpenter</acronym>






An intrepid researcher has discovered more than 200 tax liens totaling more than $3.7 million have been filed by the government against the Association of Community Organizers for Reform Now for unpaid taxes since the late eighties.
A tax lien is issued when a person or organization fails to pay taxes and that tax debt is considered seriously delinquent. A lien is only issued after the government makes several unsuccessful attempts to collect the debt.
The conservative-leaning Capital Research Center’s Matthew Vadum found a staggering number of liens listed against ACORN’s national headquarters at 1024 Elysian Fields Avenue in New Orleans, Louisiana while conducting an exhaustive investigation of ACORN's history and current activities.
“I took that address and plugged it into Nexis and did a public records search for tax liens,” Vadum said. “At least 230 tax liens corresponded to ACORN’s address and they were all from ACORN’s shadowy network of affiliates.”
The liens filed against ACORN and their associated groups come from the Internal Revenue Service and government officials in fifteen different states.
75 of the 230 tax liens appear to have been “released,” meaning the full debt was paid or a negotiated payment was made for the debt. The rest are outstanding.
The "shadowy network" Vadum mentioned are the hundreds of ACORN offshoots housed at ACORN's official 1024 Elysian Fields Avenue address, such as Project Vote, ACORN Institute Inc., ACORN Housing Inc. Inc and Wal-Mart Alliance for Reform Now (WARN). One of those organizations is Citizens Consulting, Inc, which was paid nearly $800,000 by Democratic presidential candidate Barack Obama’s campaign to conduct get-out-the-vote activities during the Democratic primary.
While CSI raked in cash from the Obama campaign the IRS was preparing nearly a million in liens against ACORN. The IRS filed a lien on ACORN for $306,407 on March 6, 2008. A different lien was filed for $547,312 against ACORN on March 10, 2008 and another was filed on March 14 for $132,997.
Minority Leader Rep. John Boehner (R.-Ohio)and other Republicans have called on Congress to strip ACORN of their federal funding, which has received at least $31 million in various grants since 1998, because of ACORN's role in rampant vote registration fraud across the nation, but Democrats have not expressed any interest in doing this.
“ACORN is a relentless crusader for social programs and government wealth redistribution schemes and the fact they can’t be bothered to pay taxes speaks volumes about the integrity of the organization,” Vadum said.
 
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Watch the liberal leftists on here come to defend this
vile corrupt organization, like flies on shit.
 
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Talking about flies on shit...

http://article.nationalreview.com/?q=NDZiMjkwMDczZWI5ODdjOWYxZTIzZGIyNzEyMjE0ODI=

Inside Obama’s Acorn
By their fruits ye shall know them.

By Stanley Kurtz

What if Barack Obama’s most important radical connection has been hiding in plain sight all along? Obama has had an intimate and long-term association with the Association of Community Organizations for Reform Now (Acorn), the largest radical group in America. If I told you Obama had close ties with MoveOn.org or Code Pink, you’d know what I was talking about. Acorn is at least as radical as these better-known groups, arguably more so. Yet because Acorn works locally, in carefully selected urban areas, its national profile is lower. Acorn likes it that way. And so, I’d wager, does Barack Obama.
This is a story we’ve largely missed. While Obama’s Acorn connection has not gone entirely unreported, its depth, extent, and significance have been poorly understood. Typically, media background pieces note that, on behalf of Acorn, Obama and a team of Chicago attorneys won a 1995 suit forcing the state of Illinois to implement the federal “motor-voter” bill. In fact, Obama’s Acorn connection is far more extensive. In the few stories where Obama’s role as an Acorn “leadership trainer” is noted, or his seats on the boards of foundations that may have supported Acorn are discussed, there is little follow-up. Even these more extensive reports miss many aspects of Obama’s ties to Acorn.

An Anti-Capitalism Agenda
To understand the nature and extent of Acorn’s radicalism, an excellent place to begin is Sol Stern’s 2003 City Journal article, “ACORN’s Nutty Regime for Cities.” (For a shorter but helpful piece, try Steven Malanga’s “Acorn Squash.”)

Sol Stern explains that Acorn is the key modern successor of the radical 1960’s “New Left,” with a “1960’s-bred agenda of anti-capitalism” to match. Acorn, says Stern, grew out of “one of the New Left’s silliest and most destructive groups, the National Welfare Rights Organization.” In the 1960’s, NWRO launched a campaign of sit-ins and disruptions at welfare offices. The goal was to remove eligibility restrictions, and thus effectively flood welfare rolls with so many clients that the system would burst. The theory, explains Stern, was that an impossibly overburdened welfare system would force “a radical reconstruction of America’s unjust capitalist economy.” Instead of a socialist utopia, however, we got the culture of dependency and family breakdown that ate away at America’s inner cities — until welfare reform began to turn the tide.

While Acorn holds to NWRO’s radical economic framework and its confrontational 1960’s-style tactics, the targets and strategy have changed. Acorn prefers to fly under the national radar, organizing locally in liberal urban areas — where, Stern observes, local legislators and reporters are often “slow to grasp how radical Acorn’s positions really are.” Acorn’s new goals are municipal “living wage” laws targeting “big-box” stores like Wal-Mart, rolling back welfare reform, and regulating banks — efforts styled as combating “predatory lending.” Unfortunately, instead of helping workers, Acorn’s living-wage campaigns drive businesses out of the very neighborhoods where jobs are needed most. Acorn’s opposition to welfare reform only threatens to worsen the self-reinforcing cycle of urban poverty and family breakdown. Perhaps most mischievously, says Stern, Acorn uses banking regulations to pressure financial institutions into massive “donations” that it uses to finance supposedly non-partisan voter turn-out drives.

According to Stern, Acorn’s radical agenda sometimes shifts toward “undisguised authoritarian socialism.” Fully aware of its living-wage campaign’s tendency to drive businesses out of cities, Acorn hopes to force companies that want to move to obtain “exit visas.” “How much longer before Acorn calls for exit visas for wealthy or middle-class individuals before they can leave a city?” asks Stern, adding, “This is the road to serfdom indeed.”

In Your Face
Acorn’s tactics are famously “in your face.” Just think of Code Pink’s well-known operations (threatening to occupy congressional offices, interrupting the testimony of General David Petraeus) and you’ll get the idea. Acorn protesters have disrupted Federal Reserve hearings, but mostly deploy their aggressive tactics locally. Chicago is home to one of its strongest chapters, and Acorn has burst into a closed city council meeting there. Acorn protestors in Baltimore disrupted a bankers’ dinner and sent four busloads of profanity-screaming protestors against the mayor’s home, terrifying his wife and kids. Even a Baltimore city council member who generally supports Acorn said their intimidation tactics had crossed the line.

Acorn, however, defiantly touts its confrontational tactics. While Stern himself notes this, the point is driven home sharper still in an Acorn-friendly reply to Stern entitled “Enraging the Right.” Written by academic/activists John Atlas and Peter Dreier, the reply’s avowed intent is to convince Acorn-friendly politicians, journalists, and funders not to desert the organization in the wake of Stern’s powerful critique. The stunning thing about this supposed rebuttal is that it confirms nearly everything Stern says. Do Atlas and Dreier object to Stern’s characterizations of Acorn’s radical plans — even his slippery-slope warnings about Acorn’s designs on basic freedom of movement? Nope. “Stern accurately outlines Acorn’s agenda,” they say.

Do Atlas and Dreier dismiss Stern’s catalogue of Acorn’s disruptive and intentionally intimidating tactics as a set of regrettable exceptions to Acorn’s rule of civility? Not a chance. Atlas and Dreier are at pains to point out that intimidation works. They proudly reel off the increased memberships that follow in the wake of high-profile disruptions, and clearly imply that the same public officials who object most vociferously to intimidation are the ones most likely to cave as a result. What really upsets Atlas and Dreier is that Stern misses the subtle national hand directing Acorn’s various local campaigns. This is radicalism unashamed.

But don’t let the disruptive tactics fool you. Acorn is a savvy and exceedingly effective political player. Stern says that Acorn’s key postNew Left innovation is its determination to take over the system from within, rather than futilely try to overthrow it from without. Stern calls this strategy a political version of Invasion of the Body Snatchers. Take Atlas and Dreier at their word: Acorn has an openly aggressive and intimidating side, but a sophisticated inside game, as well. Chicago’s Acorn leader, for example, won a seat on the Board of Aldermen as the candidate of a leftist “New Party.”

Obama Meets Acorn
What has Barack Obama got to do with all this? Plenty. Let’s begin with Obama’s pre-law school days as a community organizer in Chicago. Few people have a clear idea of just what a “community organizer” does. A Los Angeles Times piece on Obama’s early Chicago days opens with the touching story of his efforts to build a partnership with Chicago’s “Friends of the Parks,” so that parents in a blighted neighborhood could have an inviting spot for their kids to play. This is the image of Obama’s organizing we’re supposed to hold. It’s far from the whole story, however. As the L. A. Times puts it, “Obama’s task was to help far South Side residents press for improvement” in their communities. Part of Obama’s work, it would appear, was to organize demonstrations, much in the mold of radical groups like Acorn.

Although the L. A. Times piece is generally positive, it does press Obama’s organizing tales on certain points. Some claim that Obama’s book, Dreams from My Father, exaggerates his accomplishments in spearheading an asbestos cleanup at a low-income housing project. Obama, these critics say, denies due credit to Hazel Johnson, an activist who claims she was the one who actually discovered the asbestos problem and led the efforts to resolve it. Read carefully, the L. A. Times story leans toward confirming this complaint against Obama, yet the story’s emphasis is to affirm Obama’s important role in the battle. Speaking up in defense of Obama on the asbestos issue is Madeleine Talbot, who at the time was a leader at Chicago Acorn. Talbot, we learn, was so impressed by Obama’s organizing skills that she invited him to help train her own staff.

And what exactly was Talbot’s work with Acorn? Talbot turns out to have been a key leader of that attempt by Acorn to storm the Chicago City Council (during a living-wage debate). While Sol Stern mentions this story in passing, the details are worth a look: On July 31, 1997, six people were arrested as 200 Acorn protesters tried to storm the Chicago City Council session. According to the Chicago Daily Herald, Acorn demonstrators pushed over the metal detector and table used to screen visitors, backed police against the doors to the council chamber, and blocked late-arriving aldermen and city staff from entering the session.

Reading the Herald article, you might think Acorn’s demonstrators had simply lost patience after being denied entry to the gallery at a packed meeting. Yet the full story points in a different direction. This was not an overreaction by frustrated followers who couldn’t get into a meeting (there were plenty of protestors already in the gallery), but almost certainly a deliberate bit of what radicals call “direct action,” orchestrated by Acorn’s Madeleine Talbot. As Talbot was led away handcuffed, charged with mob action and disorderly conduct, she explicitly justified her actions in storming the meeting. This was the woman who first drew Obama into his alliance with Acorn, and whose staff Obama helped train.

Surprise Visit
Does that mean Obama himself schooled Acorn volunteers in disruptive “direct action?” Not necessarily. The City Council storming took place in 1997, years after Obama’s early organizing days. And in general, Obama seems to have been part of Acorn’s “inside baseball” strategy. As a national star from his law school days, Obama knew he had a political future, and would surely have been reluctant to violate the law. In his early organizing days, Obama used to tell the residents he organized that they’d be more effective in their protests if they controlled their anger. On the other hand, as he established and deepened his association with Acorn through the years, Obama had to know what the organization was all about. Moreover, in his early days, Obama was not exactly a stranger to the “direct action” side of community organizing.

Consider the second charge against Obama raised by the L.A. Times backgrounder. On the stump today, Obama often says he helped prevent South Side Chicago blacks, Latinos, and whites from turning on each other after losing their jobs, but many of the community organizers interviewed by the L. A. Times say that Obama worked overwhelmingly with blacks.
To rebut this charge, Obama’s organizer friends tell the story of how he helped plan “actions” that included mixed white, black, and Latino groups. For example, following Obama’s plan, one such group paid a “surprise visit” to a meeting between local officials considering a landfill expansion. The protestors surrounded the meeting table while one activist made a statement chiding the officials, after which the protestors filed out. Presto! Obama is immunized from charges of having worked exclusively with blacks — but at the cost of granting us a peek at the not-so-warm-and-fuzzy side of his community organizing. Intimidation tactics are revealed, and Obama’s alliance with radical Acorn activists like Madeleine Talbot begins to make sense.

“Non-Partisan”
The extent of Obama’s ties to Acorn has not been recognized. We find some important details in an article in the journal Social Policy entitled, “Case Study: Chicago — The Barack Obama Campaign,” by Toni Foulkes, a Chicago Acorn leader and a member of Acorn’s National Association Board. The odd thing about this article is that Foulkes is forced to protect the technically “non-partisan” status of Acorn’s get-out-the-vote campaigns, even as he does everything in his power to give Acorn credit for helping its favorite son win the critical 2004 primary that secured Obama the Democratic nomination to the U.S. Senate.

Before giving us a tour of Acorn’s pro-Obama but somehow “non-partisan” election activities, Foulks treats us to a brief history of Obama’s ties to Acorn. While most press accounts imply that Obama just happened to be at the sort of public-interest law firm that would take Acorn’s “motor voter” case, Foulkes claims that Acorn specifically sought out Obama’s representation in the motor voter case, remembering Obama from the days when he worked with Talbot. And while many reports speak of Obama’s post-law school role organizing “Project VOTE” in 1992, Foulkes makes it clear that this project was undertaken in direct partnership with Acorn. Foulkes then stresses Obama’s yearly service as a key figure in Acorn’s leadership-training seminars.

At least a few news reports have briefly mentioned Obama’s role in training Acorn’s leaders, but none that I know of have said what Foulkes reports next: that Obama’s long service with Acorn led many members to serve as the volunteer shock troops of Obama’s early political campaigns — his initial 1996 State Senate campaign, and his failed bid for Congress in 2000 (Foulkes confuses the dates of these two campaigns.) With Obama having personally helped train a new cadre of Chicago Acorn leaders, by the time of Obama’s 2004 U.S. Senate campaign, Obama and Acorn were “old friends,” says Foulkes.

So along with the reservoir of political support that came to Obama through his close ties with Jeremiah Wright, Father Michael Pfleger, and other Chicago black churches, Chicago Acorn appears to have played a major role in Obama’s political advance. Sure enough, a bit of digging into Obama’s years in the Illinois State Senate indicates strong concern with Acorn’s signature issues, as well as meetings with Acorn and the introduction by Obama of Acorn-friendly legislation on the living wage and banking practices. You begin to wonder whether, in his Springfield days, Obama might have best been characterized as “the Senator from Acorn.”

Foundation MoneyAlthough it’s been noted in an important story by John Fund, and in a long Obama background piece in the New York Times, more attention needs to be paid to possible links between Obama and Acorn during the period of Obama’s service on the boards of two charitable foundations, the Woods Fund and the Joyce Foundation.

According to the New York Times, Obama’s memberships on those foundation boards, “allowed him to help direct tens of millions of dollars in grants” to various liberal organizations, including Chicago Acorn, “whose endorsement Obama sought and won in his State Senate race.” As best as I can tell (and this needs to be checked out more fully), Acorn maintains both political and “non-partisan” arms. Obama not only sought and received the endorsement of Acorn’s political arm in his local campaigns, he recently accepted Acorn’s endorsement for the presidency, in pursuit of which he reminded Acorn officials of his long-standing ties to the group.
Supposedly, Acorn’s political arm is segregated from its “non-partisan” registration and get-out-the-vote efforts, but after reading Foulkes’ case study, this non-partisanship is exceedingly difficult to discern. As I understand, it would be illegal for Obama to sit on a foundation board and direct money to an organization that openly served as his key get-out-the-vote volunteers on Election Day. I’m not saying Obama crossed a legal line here: Based on Foulkes’ account, Acorn’s get-out-the-vote drive most likely observed the technicalities of “non-partisanship.”

Nevertheless, the possibilities suggested by a combined reading of the New York Times piece and the Foulkes article are disturbing. While keeping within the technicalities of the law, Obama may have been able to direct substantial foundation money to his organized political supporters. I offer no settled conclusion, but the matter certainly warrants further investigation and discussion. Obama is supposed to be the man who transcends partisanship. Has he instead used his post at an allegedly non-partisan foundation to direct money to a supposedly non-partisan group, in pursuit of what are in fact nakedly partisan and personal ends? I have no final answer, but the question needs to be pursued further.

In fact, the broader set of practices by which activist groups pursue intensely partisan ends under the guise of non-partisanship merits further scrutiny. Consider the 2006 report by Jonathan Bechtle, “Voter Turnout or Voter Fraud?” which includes a discussion of the nexus between Project Vote and Acorn, a nexus where Obama himself once resided. According to Bechtle, “It’s clear that groups that claimed to be nonpartisan wanted a partisan outcome,” and reading Foulkes’s case study of Acorn’s role in Obama’s U.S. Senate campaign, one can’t help but agree.

Radical Obama
Important as these questions of funding and partisanship are, the larger point is that Obama’s ties to Acorn — arguably the most politically radical large-scale activist group in the country — are wide, deep, and longstanding. If Acorn is adept at creating a non-partisan, inside-game veneer for what is in fact an intensely radical, leftist, and politically partisan reality, so is Obama himself. This is hardly a coincidence: Obama helped train Acorn’s leaders in how to play this game. For the most part, Obama seems to have favored the political-insider strategy, yet it’s clear that he knew how to play the in-your-face “direct action” game as well. And surely during his many years of close association with Acorn, Obama had to know what the group was all about.

The shame of it is that when the L. A. Times returned to Obama’s stomping grounds, it found the park he’d helped renovate reclaimed by drug dealers and thugs. The community organizer strategy may generate feel-good moments and best-selling books, but I suspect a Wal-Mart as the seed-bed of a larger shopping complex would have done far more to save the neighborhood where Obama worked to organize in the “progressive” fashion. Unfortunately, Obama’s Acorn cronies have blocked that solution.

In any case, if you’re looking for the piece of the puzzle that confirms and explains Obama’s network of radical ties, gather your Acorns this spring. Or next winter, you may just be left watching the “President from Acorn” at his feast.

Stanley Kurtz is a senior fellow at the Ethics and Public Policy Center and an NRO contributing editor.
 

powdered milkman
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sorry zit but the proverbially......YAWN
 

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That's the problem, is that the democrats look at this corruption like
it's no big deal.

I guess it's par for the course huh? To be expected, right?

I guess when you consider voter caging happened in 2004, it is indeed. And who was the ones doing the voter suppression? Republicans. Something like 3 million people.

Its fun playing partisan party politics, its like playing make believe!

:lol:
 

I'm still here Mo-fo's
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Disgusting.

There, ya happy Zitty?


bt15660-25-2t.jpg


:pope:
 
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If the GOP Had Listened to ACORN's Advice, the Mortgage Ind. Wouldn't Be in Meltdown.

Desperate Republicans are scapegoating the respected community advocacy group for Wall Street's disastrous lending spree.



An increasingly desperate Republican attack machine has recently identified the community organizing group ACORN as Public Enemy Number One. Among ACORN's alleged crimes, perhaps the most serious is that it caused, nearly single-handedly, the world's financial crisis. That's the fantasy. In the reality-based world, it was ACORN that sounded the alarm about the exploitative lending practices that led to the current mortgage meltdown and financial crisis.
Since the 1970s ACORN, which has 400,000 low- and moderate-income "member families" in more than 100 cities in forty states, has been warning Congress to protect borrowers from the banking industry's irresponsible, risky and predatory practices -- subprime loans, racial discrimination (called "redlining") and rip-off fees. ACORN has persistently called for stronger regulations on banks, private mortgage companies, mortgage brokers and rating agencies. For years, ACORN has alerted public officials that the industry was hoodwinking many families into taking out risky loans they couldn't afford and whose fine print they couldn't understand.
Now John McCain and his fellow conservatives are accusing ACORN of strong-arming Congress and big Wall Street banks into making subprime loans to poor families who couldn't afford them, thus causing the economic disaster. McCain's campaign is running a one-and-a-half-minute video that claims Barack Obama once worked for ACORN, repeats the accusation that ACORN is responsible for widespread voter registration fraud and accuses ACORN of "bullying banks, intimidation tactics, and disruption of business." The ad claims that ACORN "forced banks to issue risky home loans -- the same types of loans that caused the financial crisis we're in today."

For months, the right-wing echo chamber -- bloggers, columnists, editorial writers and TV and radio talk-show hosts -- has pitched in with a well-orchestrated campaign to blame the mortgage crisis on ACORN and the Community Reinvestment Act (CRA), the 1977 anti-redlining law. In a September 27 editorial, the Wall Street Journal wrote that "ACORN has promoted laws like the Community Reinvestment Act, which laid the foundation for the house of cards built out of subprime loans" and then falsely claimed the bailout bill would create a trust fund "pipeline" to fill ACORN's coffers. On October 14 the Journal's lead editorial, Obama and ACORN, described ACORN as a "shady outfit" and accused the group of being "a major contributor to the subprime meltdown by pushing lenders to make home loans on easy terms, conducting 'strikes' against banks so they'd lower credit standards."

Discussing the mortgage crisis on his Fox News show, Your World, Neil Cavuto commented, "Loaning to minorities and risky folks is a disaster."
Over at the Washington Post, columnist Charles Krauthammer complained that the CRA had led banks and other lenders "to extend mortgages to people who were borrowing over their heads." Holding forth on The O'Reilly Factor, Laura Ingraham laid the foreclosure problem on Bill Clinton, who "pushed all these institutions to lend to minority communities." Many of the loans, she said, were "very risky." Former Arkansas Governor Mike Huckabee, a putative populist, echoed on the Hannity & Colmes Show: "The truth is that Democrats controlled the ability to fix this [the mortgage crisis]. It was their harsh regulation under the Community Reinvestment Act that started this ball rolling down the hill. "

On September 10 on Fox & Friends, National Review columnist Stanley Kurtz described ACORN as "a group of community organizers [who] specialize in putting pressure, really kind of intimidation tactics, on banks, to get these banks to make high-risk loans to low-credit customers. They even show up at the homes of bank officials to scare them and their families. They send demonstrators into the lobbies of banks, all to get the banks to make these high-risk loans to people with low credit." McCain's anti-ACORN attack video is almost a word-for-word duplication of Kurtz's comments.


The right-wing case against the CRA is entirely bogus -- a diversionary tactic to take the heat off the financial services industry and its allies, like McCain. The CRA applies only to depository institutions, like commercial and savings banks, but thanks to Congress's deregulation mania, there are now many other lenders, including private mortgage companies like CitiMortgage, Household Finance and Countrywide Financial (which was recently bought out by Bank of America). These outfits, which exist in a shadow world without government oversight, account for most of the predatory loans in trouble today.

When Congress enacted the CRA in 1977, the vast majority of all mortgage loans were made by lenders regulated by the law. In 2006 only about 43 percent of home loans were made by companies subject to the CRA. Indeed, the main culprits in the subprime scandal -- the nonbank mortgage companies, which successfully grabbed the bulk of the mortgage market away from the CRA-regulated banking industry -- were not covered by the CRA.

Wall Street investment firms -- including Lehman Brothers, Goldman Sachs, Bear Stearns and Citigroup -- set up special units, provided mortgage companies with lines of credit, then purchased the subprime mortgages from the lenders, bundled them into "mortgage-backed securities" and sold them for a fat fee to wealthy investors worldwide, typically without scrutiny. By 2007 the subprime business had become a $1.5 trillion global market for investors seeking high returns. Because lenders didn't have to keep the loans on their books, they didn't worry about the risk of losses.

Congress passed the CRA after many studies, using the banks' lending data, had documented widespread racial discrimination in mortgage lending. The CRA encourages federally chartered banks to examine the credit needs of the communities they serve and to lend based on these needs -- for small businesses, homes and other types of loans. It does not require banks to make loans to businesses or people who can't repay them. It does not ask banks to engage in charity. It simply tells banks: don't discriminate against qualified borrowers.

At first, many banks were reluctant to make loans to minority borrowers seeking to fix up their homes, buy new ones or start new businesses in urban neighborhoods. In the late 1970s and early '80s, community organizing groups like ACORN, National People's Action and others pushed banks and federal regulators to remove their racial blinders. Once they did so, banks discovered that many working- and middle-class black and Latino borrowers were excellent customers with good credit histories. These new markets generated good profits on stable loans with little risk.
The explosion of subprime mortgages was touched off in the early twenty-first century, as the number of lenders regulated by the government and covered by the CRA dramatically dwindled. In 2002 subprime loans made up 8 percent of all mortgages; by 2006 they had soared to 20 percent. Since 2004 more than 90 percent of subprime mortgages have come with exploding adjustable rates.

Not surprisingly, the foreclosure rates on subprime, adjustable-rate and other exotic mortgage loans have run four to five times higher than the foreclosure rates on conventional CRA mortgages. Testifying before the House Financial Services Committee in February, University of Michigan law professor Michael Barr reported that only about 20 percent of subprime mortgages were issued by banks regulated by the CRA. The other 80 percent of predatory and high-interest subprime loans were offered by financial institutions not covered by the CRA and not subject to routine examination or supervision. "The worst and most widespread abuses occurred in the institutions with the least federal oversight," Barr told Congress.


In contrast, the CRA actually penalizes banks for reckless, irresponsible or otherwise predatory lending. According to Ellen Seidman, director of the Treasury Department's Office of Thrift Supervision from 1997 to 2001, federal regulators warned CRA-covered institutions that "badly underwritten subprime products that ignored consumer protections were not acceptable." Lenders not subject to CRA did not receive similar warnings.

And unlike the institutions that offer unregulated predatory subprime loans, banks that make CRA loans are required by federal regulation to verify borrowers' incomes to make sure they can afford the mortgages. In 2006 the Federal Reserve reported that just 11.5 percent of mortgages made by CRA-regulated institutions were high-cost loans, compared with 33.5 percent for lenders not covered by the CRA. Janet Yellen, president and CEO of the Federal Reserve Bank of San Francisco, has criticized those who blame CRA lending for the subprime crisis: "Most of the loans made by depository institutions examined under the CRA have not been higher-priced loans, and studies have shown that the CRA has increased the volume of responsible lending to low- and moderate-income households."

While the CRA helped boost the nation's homeownership rate, particularly among black and Latino borrowers, subprime and other exotic mortgages had very little impact on homeownership. Most subprime loans were refinances of existing mortgages. From 1998 through 2005, more than half of all subprime mortgages were for refinancing, while less than 10 percent of subprime loans went to first-time home buyers. Moreover, a significant number of borrowers who took out subprime loans could have qualified for conventional, prime-rate mortgages with much better terms. Even the Wall Street Journal acknowledges that "plenty of people with seemingly good credit are also caught in the subprime trap." Brokers and lenders misled many of these homeowners, replacing safe thirty-year fixed-rate mortgages with deceptive, risky loans.


The CRA gave federal regulators the power to deny approval for lucrative bank mergers or acquisitions if the companies engaged in persistently irresponsible or discriminatory lending. Under Reagan and George W. Bush, regulators failed to enforce the law, so activist groups like ACORN used the CRA to hold banks accountable. They conducted their own studies, uncovered banks with a pattern of irresponsible lending, exposed these practices to the media and demanded that regulators do their job. To avoid costly and harmful confrontations, many lenders forged "community reinvestment agreements" with ACORN and other community groups, pledging to make loans to borrowers who could afford them and whose neighborhood banks had ignored them. According to a study by the Harvard Joint Center for Housing Studies, the CRA helped catalyze more than $1 trillion in bank lending.

ACORN and its allies, including the Center for Responsible Lending, the Greenlining Institute, the Center for Community Change and the National Community Reinvestment Coalition, carried on the battle against abusive lenders on many fronts to ensure that loans in minority areas did not put borrowers in risky situations. ACORN's homeownership counseling program for prospective borrowers was successful in helping families avoid taking out loans they could not afford. In 2006 the foreclosure rate of loans to borrowers who went through ACORN's homeowner counseling program stood at .032 percent.

ACORN and other consumer groups fought for rules requiring lenders to document that borrowers had the ability to repay. They warned that adjustable-rate mortgages -- those that started with a low "teaser" rate, which would adjust to a much higher rate later -- were a ticking time bomb and that such loans should be made only to people who were able to afford the regular rates after the teasers had run out. But the lenders and the securitizers (Wall Street firms that packaged loans into mortgage-backed securities and sold them) -- and too often the regulators and the lawmakers -- didn't heed the warnings. The industry convinced its political cronies that government regulation was too costly and cumbersome.
ACORN and its allies opposed banks whose fees and other charges inflated the cost of loans while padding their profits from transactions and diminishing the long-term safety of these loans. These groups denounced compensation systems that rewarded lenders and brokers for putting borrowers in higher-cost loans regardless of their credit-worthiness. They exposed the outrageous practice called "yield spread premium." This is a kickback from lenders to brokers for selling loans that are more expensive than what borrowers qualify for. It is essentially a bonus for cheating the borrower and upping the risk of default. Earlier this year, after a long battle by the Center for Responsible Lending, the first state -- North Carolina -- made this practice illegal.

ACORN joined other consumer advocates and lawyers to promote the notion of "assignee liability" -- arguing that companies that buy, and profit from, loans bear responsibility for illegal acts committed when those loans were originally made. Without it, the mortgage originators, who typically hold loans briefly before they sell them, can make fraudulent or risky loans without suffering any consequences. Again and again, Wall Street argued that it was too burdensome to scrutinize the loans they were buying or to be held responsible for the original transactions.

Several of ACORN's battles were notably successful. It got some major lenders to reduce the outrageously high interest rates and fees they charged borrowers. For example, in 2001 ACORN persuaded Household Finance Corporation to abolish its practice of selling bogus credit insurance that had been costing a billion dollars a year straight out of homeowners' pockets. ACORN's activism spurred state attorneys general to sue Household Finance in 2002, forcing the firm to distribute a record $484 million to abused borrowers. In a separate suit against Household Finance, ACORN won a $150 million settlement that it put partly into a foreclosure prevention fund.

But ACORN and its counterparts have only been able to stick their fingers in the crumbling dike of American finance. Their warnings were prescient, but their victories were too small, their opponents too strong. So it is richly ironic that John McCain -- a longtime ally of the banking industry whose mentor Phil Gramm orchestrated the 1999 Financial Modernization Act, opening the floodgates to irresponsible lending practices -- is trying to scapegoat ACORN for the subprime crisis. Powerful business groups and their right-wing allies will continue to attack ACORN because it exposed and battled the real culprits of the financial crisis.

The Nation.com
 

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Up until around April, I was for McCain.

*Yawn*

Don't be a sore loser on the morning of November 5th.
 
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I guess when you consider voter caging happened in 2004, it is indeed. And who was the ones doing the voter suppression? Republicans. Something like 3 million people.

Its fun playing partisan party politics, its like playing make believe!

:lol:

Fletch, I have no problem pointing out corruption on both sides of
the aisle. Why not just admit the ACORN is fucking corrupt instead
of trying to deflect?
 

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Fletch, I have no problem pointing out corruption on both sides of
the aisle. Why not just admit the ACORN is fucking corrupt instead
of trying to deflect?

:lolBIG:

cause i couldn't give a fuck. As far as ACORN goes or for anyone of that matter that does these types of shaninigans. I couldn't give a rats ass, nor do i trust them or Rove or anyone else for that matter trying to win an election. I wouldn't put a dollar betting they were not. I mean from everything i have heard, they most likely were so thats A-OK with me, if you want to put them in that list. But most everything i heard about them was through the MSM, so go figure. Just more distractions from the true enemy of democracy IMO Zit. And that has nothing to to do with Republican and Democrats.
 

Officially Punching out Nov 25th
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[figures, these corrupt lying vile sleazy democrats crusade for wealth
redistribution, but won't pay taxes. typical
]

It's amazing you could replace democrats with Churches and the phrase still works.
 

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It's amazing you could replace democrats with Churches and the phrase still works.


:lolBIG: Indeed this be funny. Big fan of irony here.
 

Honey Badger Don't Give A Shit
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Can't tell you fellas how funny it is to open a thread and see over a half dozen ZIT posts on IGNORE and the few that get Quoted all give the same whiny "Everyone but me and my preacher are steaming vile piles of smoking steaming shit"
 

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It would have been funny, if the replacement worked or if it were true.

But neither worked. nice try though.

What dont you agree with?

1.Does your church pass a plate?
2.Does it do charitable work?
3.Does it pay taxes?


Here is the answer list for every christian church i know of.

1.Yes.
2.Yes.
3.No.

However, i dont pretend to know all churches either, especially them there snake handlen' ones down there in Texas. :lolBIG:

I mean you take from your church parish to give to the less fortunate or poor (mission work) and they pay no taxes. Again, what part dont your church take part in?
 
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What dont you agree with?

1.Does your church pass a plate?
2.Does it do charitable work?
3.Does it pay taxes?


Here is the answer list for every christian church i know of.

1.Yes.
2.Yes.
3.No.

However, i dont pretend to know all churches either, especially them there snake handlen' ones down there in Texas. :lolBIG:

I mean you take from your church parish to give to the less fortunate or poor (mission work) and they pay no taxes. Again, what part dont your church take part in?

One very key difference Fletch, people give to the church willingly
out of the goodness of their heart, and because they WANT TO.

The corrupt government takes money from us, and wastes most of it.
 
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Can't tell you fellas how funny it is to open a thread and see over a half dozen ZIT posts on IGNORE and the few that get Quoted all give the same whiny "Everyone but me and my preacher are steaming vile piles of smoking steaming shit"

Barman is obsessed with me. I used to have some respect for him,
until I found out that he's a cult hopper - currently a member
of one of the kookiest cults out there.

Those kooky cults specialize in brain-washing the ignorant and
weak - looks like Barman fit right in.

He needs professional help in a big way.
 

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