Martha Coakley Got A+ From ACORN
Submitted by Peter Flaherty <http://www.nlpc.org/bios/peter-flaherty> on
Fri, 01/15/2010 - 14:18
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[image: Coakley photo]A June 12, 2008 press
release<http://www.mass.gov/?pageID=cagopressrelease&L=1&L0=Home&sid=Cago&b=pressrelease&f=2008_06_12_acorn_report&csid=Cago>
from
Massachusetts Attorney General Martha Coakley ballyhoos the fact that she
earned an “A+” from ACORN. Ironically, this perfect grade was awarded for
“responding to the foreclosure crisis.” No single non-governmental entity is
more responsible for the real estate meltdown than ACORN.

Coakley’s press release goes on to detail various prosecutions of shady
subprime operators but, of course, there is not a word about any
investigation or prosecution of ACORN.

ACORN’s role in the residential mortgage crisis, much of it driven by
subprime lending, is no mystery.  Starting in the Seventies, ACORN saw the
big banks as shakedown targets.  ACORN screamed “racism.” It accused
mortgage lenders of “redlining,” or denying credit to borrowers in certain
areas. It picketed the homes of bank directors in leafy suburbs.

A way out was offered to the banks. They could make contributions to ACORN
and/or they could “invest” in ACORN Housing, which made loans to
“underserved” borrowers.

They also could back off from opposition to a law called the Community
Reinvestment Act of 1977 that required banks and thrifts to lend more money
from areas where they took deposits. It meant more loans to “underserved”
communities, and a loosening of lending standards.

Of course, many of ACORN’s “deserving” borrowers were not deserving at all.
Increasingly, the banks dumped the loans on Fannie Mae and Freddie Mac,
which were under pressure by Congressmen like Barney Frank (D-MA) to make
more loans to the “underserved.”

The result was the mortgage meltdown that nearly took down our entire
financial system, providing the justification for the massive bailouts of
the banks.

Related:

Congress Seeks to Expand Community Reinvestment Act, Encourage
Shakedowns<http://www.nlpc.org/stories/2009/12/16/congress-seek-expand-community-reinvestment-act-punish-mortgage-lenders>

Boehm Blasts Mass. AG Coakley in Honorary Degree
Flap<http://www.nlpc.org/stories/2009/08/04/boehm-blasts-mass-ag-coakley-honorary-degree-flap>

   - ACORN <http://www.nlpc.org/category/keywords/acorn>
   - Community Reinvestment
Act<http://www.nlpc.org/category/keywords/community-reinvestment-act>

   - Government Integrity
Project<http://www.nlpc.org/category/project-name/government-integrity-project>

   - Martha Coakley <http://www.nlpc.org/category/people/martha-coakley>


   - Peter Flaherty's blog <http://www.nlpc.org/blogs/peter-flaherty>
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