As bad as the incestuous relationship between Sen. Chris Dodd’s (D-Conn.) and Countrywide Financial is, it probably is not even the worst part of the housing bailout compromise in Congress. At least the Countrywide bailout would be a one-time theft of taxpayer money (although this bailout would increase risky behavior that will lead to future bailouts). But an arguably far worse portion of the compromise is the creation of a permanent low-income housing slush fund.
As we have documented before, blatantly liberal partisan groups like the Association of Community Organizations for Reform Now (ACORN), with a long and established history of using fraud, deceit and intimidation, have been fighting to establish National Housing Trust Fund for more than a decade. The mortgage crisis is just the latest vehicle they have used to try and weasel their way into more federal money.
The Consumer Rights League has just published a fabulous report featuring whistleblower evidence that documents ACORN’s misuse of taxpayer dollars for political ends. CRL summarizes:
These internal emails and policies suggest that ACORN has failed to maintain a proper distinction between its tax-exempt housing work and its aggressive political activities. ACORN and its affiliates are then able to extract resources from financial lenders seeking abatement from its public relations assaults and force financial settlement agreements that benefit ACORN but are harmful for consumers.
Read the full report here.