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Why Did Bank of America Pay ACORN?
...Instead we can just go to the Bank of America community website, which notes that the firm works with ACORN in more than 20 cities to provide “special mortgage products.” Or we can go to the ACORN Housing website, which describes a program that produced $246 million in mortgages from Bank of America with “flexible underwriting and discounted pricing.” Or this page, which describes a program with low down payments, no private mortgage insurance, no cash reserve necessary, and flexibility on income requirements, such as being able to include public assistance.

Yes, ACORN and Bank of America joined forces to become the ultimate subprime lender. So much for the organization’s lofty social justice rhetoric.

Yet there’s more. In February, right after the inauguration, Bank of America reported that it had made $2 million in national grants to ACORN Housing Corporation between October 2007 and June 2009 (planned). ....

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The Financial Crisis and the CRA
...As economist Russell Roberts of George Mason University points out, Bank of America reported that nonperforming CRA-eligible loans were a significant drag on its third-quarter 2008 income. Its earnings report states: “We continue to see deterioration in our community reinvestment act portfolio which totals some 7 percent of the residential book. . . . The annualized loss rate from the CRA book was 1.26 percent and represented 29 percent of the residential mortgage net losses.”...