Republicans cite ACORN’s woes in fight against redlining law
WASHINGTON - Conservative Republicans are capitalizing on the troubles of community activist group ACORN - ranging from charges of voter-registration fraud to embarrassing videos of its employees - to revive their longstanding fight against a federal law that grades banks on their investments in poor and minority neighborhoods.
The 1977 Community Reinvestment Act was intended to end redlining, or banks in effect walling off inner-city neighborhoods from mortgages. But some GOP lawmakers say it has outlived its purpose and is used inappropriately by ACORN to shake down banks for money. They want to repeal the law, scale it back, or block its expansion.
Critics link the law to ACORN, the Association of Community Organizations for Reform Now.
“Should we repeal CRA? Absolutely,’’ said Representative Jeb Hensarling, a Texas Republican who is a member of the House Financial Services Committee. “Do we have the votes for it today? I seriously doubt that.’’
Representative Ed Royce, a California Republican also on the committee, has described ACORN’s actions under the law as “legalized extortion,’’ contending the law gave ACORN the power to stall or prevent bank mergers or expansions by filing CRA complaints with regulators.
“In order to avoid these filings, financial institutions would either lower their lending requirements to meet the needs of ACORN associates or they would simply pay out funds to one of the many ACORN-affiliated organizations,’’ Royce wrote on his House website.
ACORN said that nearly all of the money it receives from banks is used to provide advice to first-time home buyers or homeowners who are at risk of losing their homes to foreclosures, and that the money is not used for political advocacy.
“The Republicans are attempting to intimidate banks to halt monies that are used to help working families become home buyers or save their homes from foreclosure,’’ spokesman Brian Kettenring said.
Archived ACORN testimony on the Federal Reserve Board website shows ACORN has spoken against many bank mergers, contending banks were not living up to the law.
ACORN’s recent troubles gave Republicans ammunition. Some employees are accused of voter fraud. And two filmmakers disguised as a prostitute and a pimp caught ACORN staffers on camera giving them tax and immigration advice and advising them to disguise the source of their income to get housing aid.
