ACORN: How One "Community Group" Helped The Housing Crisis Harm Taxpayers
This is a lengthy read, but well worth it for those that wonder about ACORN's hand in our current housing crisis.
You will need Adobe Reader as the file is in pdf format.
View the entire pdf here.
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What's in the article:
In addition to the millions of taxpayer dollars AHC has taken in, one of
the organization’s tax returns shows private donations of more than $4 million from major banks.6 Whistleblower documents covering AHC’s revenue sources from July 1, 2004 through June 31, 2005 included:
• ACORN (Citibank Partnership)...............................$127,500
• ACORN (Citibank Partnership)...............................$240,000
• ACORN (Freddie Mac)..............................................$35,000
• Ameriquest Mortgage................................................$130,000
• Fannie Mae (for Broadband).......................................$20,000
• Fannie Mae FYE 2005–2006....................................$100,000
• JP Morgan Chase 2005–2006................................$1,000,000
• Bank of America 2005–2006.................................$1,390,000
• Washington Mutual..................................................$175,000
• M & T Bank.............................................................$150,000
• United Way (American Dream)...................................$15,000
There's more:
ACORN LOANS/PROGRAMS
• Interest-Only Loans: An ACORN Housing program in operation since February 2006 has offered a Bank of America “10/30” loan. Its terms allow AHC’s low- and moderate-income customers to pay only interest for the first ten years of a forty-year mortgage. It seems fine to ACORN that these customers are building no equity for those ten years
• Non-Amortized Mortgages: AHC has counseled some of its clients into “40 year non-amortized” loans, which means that their low- and moderate income customers would reach the end of a forty year mortgage and still owe money
• Reverse Mortgages: AHC counselors have been trained to recommend that low- and moderate income senior citizens opt for reverse mortgages, an exotic loan that may be a good choice for some borrowers and a disaster-in-waiting for others
You will need Adobe Reader as the file is in pdf format.
View the entire pdf here.
***
What's in the article:
In addition to the millions of taxpayer dollars AHC has taken in, one of
the organization’s tax returns shows private donations of more than $4 million from major banks.6 Whistleblower documents covering AHC’s revenue sources from July 1, 2004 through June 31, 2005 included:
• ACORN (Citibank Partnership)...............................$127,500
• ACORN (Citibank Partnership)...............................$240,000
• ACORN (Freddie Mac)..............................................$35,000
• Ameriquest Mortgage................................................$130,000
• Fannie Mae (for Broadband).......................................$20,000
• Fannie Mae FYE 2005–2006....................................$100,000
• JP Morgan Chase 2005–2006................................$1,000,000
• Bank of America 2005–2006.................................$1,390,000
• Washington Mutual..................................................$175,000
• M & T Bank.............................................................$150,000
• United Way (American Dream)...................................$15,000
There's more:
“ It matters little if an applicant has a small income, an irregular job pattern or collects welfare or food stamps.“
ACORN LOANS/PROGRAMS
• Interest-Only Loans: An ACORN Housing program in operation since February 2006 has offered a Bank of America “10/30” loan. Its terms allow AHC’s low- and moderate-income customers to pay only interest for the first ten years of a forty-year mortgage. It seems fine to ACORN that these customers are building no equity for those ten years
• Non-Amortized Mortgages: AHC has counseled some of its clients into “40 year non-amortized” loans, which means that their low- and moderate income customers would reach the end of a forty year mortgage and still owe money
• Reverse Mortgages: AHC counselors have been trained to recommend that low- and moderate income senior citizens opt for reverse mortgages, an exotic loan that may be a good choice for some borrowers and a disaster-in-waiting for others
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