ACORN Housing Corp counseled very low-income residents to use food-stamps to qualify for loans

ACORN, NHI ^ | 1990's | self

[Columbo]

ACORN's Housing Corporation put out a PDF which explained that very low income folks could use food stamps and other gov't assitance to qualify for home loans. ACORN would then sell the loans to Fannie Mae.

This pdf "To each Their Home: Success Stories from the ACORN Housing Corporation" is very difficult to access on ACORN's archive and was dug out in this thread: http://www.freerepublic.com/focus/f-news/2109782/posts

Freepmail me if you have a use for this PDF file and I'll do my best to send you a copy.

Also, the National Housing Institute in 1996 credited ACORN with creating this new method for low income folk to get loans. So in effect we can safely say that ACORN created the sub-prime housing crisis we face today.

Here's the quote from the NHI: "ACORN Housing Corporation developed an innovative financing mechanism previously nonexistent in the marketplace by convincing Fannie Mae to tailor its underwriting criteria to meet homesteaders' needs. Local banks could then write the mortgages and be able to sell them to Fannie Mae."

Source: http://www.nhi.org/online/issues/90/success.html

Oh, and one more thing for today. ACORN listed both Project Vote and the Illinois New Party as ACORN sister organizations with contact information using acorn.org email addresses.

Source: http://web.archive.org/web/20011129160654/www.acorn.org/contact-us/address-list.html

[Columbo]

Here’s a quote from that PDF, pg 8: “Page 8 - “The agreements expanded the traditional definition of income to include government sources such as public assistance, food stamps, foster care, and Social Security.”

[Red in Blue PA]

Unbelievable!

[wac3rd]

I see, let’s allow people to parlay welfare for downpayments on fully-leveraged (over-leveraged) houses.

This is scene out of a Karl Marxian play.

[GalaxieFiveHundred]

So, I guess I can declare a year's worth of these as income on my loan application. Cool!

[3AngelaD]

This is new, listing food stamps as an asset. What about that USDA cheese they give away? Is that an asset, too?

[Columbo]

Here is a .jpg of pg 16 of this pdf:

[Columbo]

Here is pg 8 which mentions food stamps:

[linn37]

I wonder what Williams disability is.

[So Cal Rocket]

It might be interesting research to see what William and Colleen are doing today.

[Columbo]

I checked and couldn’t find this William Wooten in the Harris county property records...perhaps he moved or was evicted.

[WOBBLY BOB]

probably campaigning for Obammy via ACORN.

[Columbo]

I wonder what sort of cut ACORN received for these loans when sold to Fannie and Freddie....

[Columbo]

Here are the first three pages which outline this "innovative" new loan structure:

[businessprofessor]

This is new, listing food stamps as an asset. What about that USDA cheese they give away? Is that an asset, too?

Of course food stamps are assets. They are highly liquid. They are also a future stream of income. Try reducing food stamp benefits and you will see that they are just like money in the bank.

A number of studies have claimed the CRA loans have low default rates. If true, it may be the welfare effect. Direct recepients of CRA loans have stable income through permanent welfare programs. I also think this group has lots of unreported income. The combination of welfare support and unreported income provides a stable base for mortgages. However, we now a much larger base that wants the same deal. This group does not receive large amounts of welfare and unreported income. The rats will provide them a housing entitlement through refundable tax credits and renegotiated mortgages.

[informavoracious]

As usual, the lefties have it backward. Pride in homeownership comes from a sense of having worked hard to accomplish your dream. Practically handing someone a house merely gives them a sense of entitlement -- and seething resentment when it turns out they have neither the means nor the money management skills to make the payments or keep up the home. So they lose it, and wind up feeling even MORE disenfranchised. Then again, maybe THAT is ACORN's REAL goal. Get people whipped up that the Man did them wrong AGAIN.

Also, ACORN would have you believe that the constituents for these types of loans are hard-working Americans with good credit and character, who are being punished by the system merely for being poor. Wrong. Most of them have more self-induced problems than you can shake a stick at

[Hanna548]

Wouldn’t you think that someone with a job as a systems analyist could afford to buy a house the normal way?

Check this out....take your blood pressure pills first.

Columbo, this is from the names you gave me.

http://www.acornhousing.org/TEXT/sst5.html

[Hanna548]

I had not read all of this when I posted it. Now I have, and now I am soooooooooooooooooooooooooo MAD.

These people are getting GRANTS to make downpayments, when they have perfectly good jobs for crying out loud! Why in the world did we work our butts off for all those years???? ARGHHHHHHHHHHHHHHHHHHHH

[An Old NCO]

It isn’t just ACORN. USDA Rural Development allows home loan applicants to use Section 8 Housing Assistance to be used as repayment income for home loans.

[Columbo]

Oh, I’m sure that others started doing the same. It’s just that ACORN developed the method, pressured banks to accept it via protest, then brought freddie/frannie into the mix.

from the NHI (national housing institute): “ACORN Housing Corporation developed an innovative financing mechanism previously nonexistent in the marketplace by convincing Fannie Mae to tailor its underwriting criteria to meet homesteaders’ needs. Local banks could then write the mortgages and be able to sell them to Fannie Mae.”