Jumping on the political bandwagon, Bank of America (BAC) has cut off ties with ACORN, the disgraced left-wing community organising group.
As you can see on this page, BofA seemed to be working with ACORN in just about every state to provide special mortgages to the poor. According to this ACORN-hosted page, the relationship dates back to 1990.
While ACORN certainly had its political aims — more affordable housing, etc. — you can see right away why a bank like BofA would want to wok with ACORN. With housing thought to be relatively risk-less, even to the dodgiest of borrowers, by partnering with the group the gain the imprimatur of a trusted, local group in the community.
That being said, with low-income, poor-credit homebuying having collapsed, our guess is that ACORN-related activities had already dorpped dramatically.
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