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Date Posted: 19:28:06 09/26/08 Fri
Author: Fred
Author Host/IP: 98.173.140.150
Subject: Wingnuts blame "community organizers" for Wall Street crisis....
In reply to: Ned 's message, "Can you say "Savings & Loan? debacle?"" on 08:14:46 09/26/08 Fri

From religious wacko Lou Sheldon's website:


Section Two: Radical ACORN Helped Create Subprime Mortgage Crisis

The Obama-connected group known as ACORN (Association of Community Organizations for Reform Now) is one of the main culprits behind the current mortgage crisis in the United States, according to Stan Liebowitz, an economics professor at the University of Texas in Dallas.

Professor Liebowitz outlined how ACORN helped create this financial mess in a New York Post article (Feburary 5, 2008). According to Liebowitz, during the 1980s, groups like ACORN began pushing charges of “redlining” against banks for “discriminating” against minorities in mortgage lending.

In 1989, sympathetic members of Congress amended the Home Mortgage Disclosure Act and forced banks to collect racial data on mortgage applicants. This was then followed by studies that seemed to validate the claim that banks were discriminating. But that wasn’t the reason banks were rejecting minority loans. “…minority mortgage applications were rejected more frequently than other applications - but the overwhelming reason wasn't racial discrimination, but simply that minorities tend to have weaker finances,” said Liebowitz.

Then, in 1992, the Boston Federal Reserve bank issued a report claiming there was systemic lending discrimination against minorities. Liebowitz and others analyzed this study and found it to be seriously flawed – but the ACORN agenda triumped.

Take Action On thisThe Boston Fed issued a manual for mortgage lenders urging them to relax qualifications for getting home loans. A 1995 revision of the Community Reinvestment Act “required banks to find ways to provide mortgages to their poorer communities. It also let community activists intervene at yearly bank reviews, shaking the banks down for large pots of money.

“Banks that got poor reviews were punished; some saw their merger plans frustrated; others faced direct legal challenges by the Justice Department.

“Flexible lending programs expanded even though they had higher default rates than loans with traditional standards. On the Web, you can still find CRA loans available via ACORN with "100 percent financing . . . no credit scores . . . undocumented income . . . even if you don't report it on your tax returns." Credit counseling is required, of course,” said Liebowitz.

The Fannie Mae Foundation began working with community activists and engaged in “flexible” underwriting criteria. Low-income loans grew from $1 billion in 1992 to $600 billion by 2003. Among those giving these risky loans was Countrywide.

Liebowitz predicted in 1998 that these flexible loans would end in financial disaster for our nation. He wrote: “After the warm and fuzzy glow of 'flexible underwriting standards' has worn off, we may discover that they are nothing more than standards that lead to bad loans . . . these policies will have done a disservice to their putative beneficiaries if . . . they are dispossessed from their homes.”

That day has arrived – and America can blame ACORN and other community organizer groups that pushed risky loans upon banks and mortgage companies.

Sen. Barack Obama has attempted to blame the Bush Administration and John McCain for these financial collapses, but Obama trained ACORN activists in Chicago and provided the group with legal representation.

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