I wrote a special column for the NYPost today about how ACORN snagged a piece of the bailout pie. Although House Republicans stripped an overt subsidy to Barack Obama’s left-wing housing entitlement and fraud-enabling friends at ACORN, they rolled over to the group’s demands for radical “loan modification” and foreclosure mitigation measures that spell more trouble. Many experts say this loan modification business is plagued by junk science — with its backers refusing to release data on re-default rates. It is also apparently an invitation to appraisal fraud. In other words: Same old, same old. As I’ve said before, “Getting credit is not a constitutional right. Preserving home ownership should not be a government imperative to be pursued at all costs.” Neither should foreclosure prevention at all costs. (See also: “Not everyone should own a home.”)
If you thought the trillion- dollar-plus “financial-rescue plan” signed into law Friday had been stripped of the radical group ACORN, think again: The Chicago-based Association of Community Organizations for Reform Now’s fingerprints are still all over the law.
ACORN’s participation in “fixing” a crisis it helped create is flabbergasting.
For decades, the left-wing activist group pressured lenders to give loans to lower-income borrowers who couldn’t otherwise afford homes. The grateful homeowners then become political recruits, serving as foot soldiers for ACORN’s radical agenda.
Problem is, such mortgages are now going bad all across America. ACORN’s answer: Pressuring the banks not to foreclose on bad risks. And now, with the “rescue” bill, they’re getting ready to simply rewrite mortgages to make them affordable.
House Republicans removed one pro-ACORN measure from the rescue bill – torpedoeing a provision devoting 20 percent of all profits from the bailout to a housing slush fund – which would’ve funneled money to ACORN and similar groups.
In its place, however, ACORN’s favorite lawmakers – led by Maxine Waters (D-Calif.) and Barney Frank (D-Mass.) – got ACORN-championed “foreclosure-mitigation” provisions into the rescue.
This will radically expand the federal role in meddling with mortgage loans. The key sections mandate that the Treasury “consent” to rewriting loans to prevent foreclosures – not only by reducing interest, but also by cutting loan principal.
Stuck with a $300,000 mortgage you can’t pay? Get the government to wave its magic wand and cut your debt to $150,000.
The deal is only for those who have fallen behind on their mortgages, of course – not for all you chumps who’ve been paying on time.
And it’s a good bet that ACORN mortgage counselors will “help” decide which distressed borrowers benefit, and how.