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Association of Community Organizations for Reform Now (view source)
Revision as of 01:07, August 14, 2009
, 01:07, August 14, 2009→Community Redevelopment Act
==Community Redevelopment Act==
==Community Redevelopment Act==
In 1991 ACORN took over the House Banking Committee room for two days to protest efforts to scale back the Community Redevelopment Act (CRA). ACORN was the driving force behind a 1995 regulatory revision pushed through by the [[Clinton Administration]] that greatly expanded the CRA and laid the groundwork for the [[Fannie Mae]], [[Freddie Mac]] borne [[financial crisis of 2008]]. [[Barack Obama]] was the attorney representing ACORN in this effort. With this new authority, ACORN used its subsidiary, ACORN Housing, to promote subprime loans more aggressively. As a ''New York Post'' article describes it:
In 1991 ACORN took over the House Banking Committee room for two days to protest efforts to scale back the Community Redevelopment Act (CRA). ACORN was the driving force behind a 1995 regulatory revision pushed through by the [[Clinton Administration]] that greatly expanded the CRA and laid the groundwork for the [[Fannie Mae]], [[Freddie Mac]] borne [[financial crisis of 2008]]. [[Barack Obama]] was the attorney representing ACORN in this effort. With this new authority, ACORN used its subsidiary, ACORN Housing, to promote subprime loans more aggressively. As a ''[[New York Post]]'' article describes it:
:"A 1995 strengthening 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.
:"A 1995 strengthening 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.
The lender they were speaking of was [[Countrywide]], which specialized in subprime lending and had a working relationship with ACORN. [http://www.inman.com/news/2008/02/1/countrywide-acorn-partner-foreclosure-prevention]
The lender they were speaking of was [[Countrywide]], which specialized in subprime lending and had a working relationship with ACORN. [http://www.inman.com/news/2008/02/1/countrywide-acorn-partner-foreclosure-prevention]
Investor's Business Daily added:
''Investor's Business Daily'' added:
:"The revisions also allowed for the first time the securitization of CRA-regulated loans containing subprime mortgages. The changes came as radical "housing rights" groups led by ACORN lobbied for such loans. ACORN at the time was represented by a young public-interest lawyer in Chicago by the name of Barack Obama." [http://boards.msn.com/MSNBCboards/thread.aspx?threadid=787698]
:"The revisions also allowed for the first time the securitization of CRA-regulated loans containing subprime mortgages. The changes came as radical "housing rights" groups led by ACORN lobbied for such loans. ACORN at the time was represented by a young public-interest lawyer in Chicago by the name of Barack Obama." [http://boards.msn.com/MSNBCboards/thread.aspx?threadid=787698]