Did ACORN help cause the subprime mortgage crisis which lead to the recession?
by Mortgage Rates on Monday, November 15th, 2010 | 24 Comments
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You got it.
Well, of course they did! Right after they dropped anthrax spores out of airplanes over all the major American cities, while simultaneously dumping the AIDS virus into every water source in the country.
(pointing 2 thumbs up in the air)
Yes, they can take credit for it.
yes because they are the most powerful organization ever.
Wait, now I am confused; but I thought that was Barney Frank? The One who single-handedly brought down the entire US economy, and by extension world economy.
Barney Frank is ‘The ONE’.
No, the GOP did it all by their little selves.
Yep. You are absolutely right.
OK as a lib ill give acorn 8% blame. It was Bushs idea to push housing and the speculators who pushed the prices through the roof.
yeah, and they nailed Jesus to the cross, too…
Hugh Betcha !!!>>>ACORN IS Obama and is Crooked !…I love it…
The truth will DESTROY OBAMA
ACORN and its attorneys such as Barrack Obama forced banks to give out loans to poor credit risks further adding fuel to the fire. ACORN was also behind the push to issue credit cards to illegal immigrants. So the answer to your question is a yes.
Yes. A country in crisis turns to its government for the answers. All of this did not happen by accident. This is liberalism at its finest.
they had a hand in it, but it wasn’t all their fault… I blame liberal ideology.
“In a 1995 case known as Buycks-Roberson v. Citibank, Obama and his fellow attorneys charged that Citibank was making too few loans to black applicants and won the case. As one commentator noted in May 2008, legal “successes” such as this were probably responsible for the sub-prime mortgage crisis of 2007 AND 2008. That is, banks were not loaning to blacks whose credit was poor. When the law forced them to lend money anyway, the inevitable collapse occurred.”
Obama had a part in the lawsuit that started the government on a course of forcing lenders to give more loans to those who had poor credit. Lending companies were forced to come up with imaginative ways of fulfilling the quota that was required. Sub-prime lending was born as a result. The mortgage crises was forecast by many who were able to look beyond the quota.
Yes
ACORN had threatened to bury the banks in Civil Rights Lawsuits if the banks did not make more loans to borrowers from minority races.
Rather than be buried in lawsuits the banks began making loans to many unqualified people just to get ACORN off their backs.
Those loans that the banks made to unqualified borrowers as a result of pressure from ACORN made a substantial contribution to the mortgage crisis that we are facing today.
To answer your question, No. The mortgage crisis was caused in large part by the proliferation of risky subprime loans originated by deregulated lenders, sold off by securities firms into subprime mortgage pools, and abetted by rating agencies that failed to do their job. Many of the lenders responsible did not fall under the Community Reinvestment Act. Many of the lenders also had the ratings agencies in thier pocket. That means the agencies had a financial interest in rating these securities as high as possible and were not impartial in their ratings.
Every bank that extended a mortgage to someone could not afford it, every person who took out a mortgage they could not afford, Congress’s pressuring of Fannie Mae and Freddie Mac to extend mortgages to people who could not afford them and every special interest group who pressured Congress…..
……are all too blame.
Possibly. They were the GOP’s darlings until the Republicans lost the election, with McCain being a keynote speaker with praises for them just a few years ago.
“From 2001, when George Bush became president until 2008, the Bush administration provided over $13 million to ACORN. It was the Bush administration that maintained — ACORN has two operations. They have a certified housing counseling group — I didn’t even know this — and the Bush administration funded it.
So the question I would have to my Republican colleagues is did you try to get George Bush to cut off the funding? They got funding for counseling, for predatory lending…”
http://www.realclearpolitics.com/articles/2009/05/18/barney_frank_michele_bachmann_lou_dobbs_debate_96561.html
http://www.examiner.com/x-7109-Chicago-Liberal-Examiner~y2009m5d25-ACORN-funding–a-Republican-philosophy?cid=email-this-article
You got to be kidding me! The Banks caused the sub prime morgage crisis because of their own greed.
While they were big supporters of Obama, people are ignoring the others in DC who are in bed with ACORN. These people are still in office. I hope they are all kicked out in 2010 and 2012.
According to ACORN, yes, they did.
They’re proud of it.
Did they contribute? Probably.
Are they alone? Not in the least.
In the late 90s the Gramm Leach Bliley act was enacted, http://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Act allowing insurance companies to merge with investment banks and other mergers that were not allowed before. Why is this relavent? Because when one industry gets in trouble it shouldn’t dominoe into what we have now.
Then the Republicans pushed for deregulation of the mortgage industry. You can’t say it was Dems since the Reps held more seats. Unless you’re admitting that your Reps are just not effective at their jobs.
Now, with no regulations and with wall street cronies dictating what rates should be (the Federal Reserve is of course not Federal in any way) they encouraged this run away house prices.
Also with no regulations real estate agents could easily overstate property values. They would hire an estimator (a conflict of interests to have the RE agent do that if you ask me) to come and verify the cost of the house. The RE agent gets a commision on the sale so they want it to be worth the most they can.
Then since your mortgage brokers get commisions, they have no reason to investigate.
The mortgage underwriters jobs were farmed out to contractors, no more hourly wage jobs there. They get paid by the contract that they approve. Do you think they’re going to stop the fraud at that point?
The morgage company gets into bad assets so they lump it all together with other bad assets and sell them to China.
China gets enough of that and says NO MORE!
So to blame it all on ACORN is simply ignoring the vast majority of the problem with the entire system top to bottom.
Ancillary cause at best…definitely not a primary one. At the end of the day, it was companies like HCL Finance which introduced the NINA and NINJA (No Income, (No Job), No Asset) loans, as well as unregulated derivatives markets.
The lawsuits by ACORN were also an ancillary cause at best. What happened to interest rates commensurate with credit scores?
Lenders failed to conduct checks, and then it was a game of hot potato.
Sure they did. Their organization needs to be under investigation from the bottom up and then put out of business. Most of them should be in prison.