An Acorn Lending Scandal Allegation Would be One More Allegation of Wrongdoing Against an Organization Hit With Many Allegations Lately.

An ACORN lending scandal allegation may not be too far-fetched a notion.

Sub-prime loans essentially lie at the heart of the financial crisis; these were loans that involved lending money to people that really had no business being lent money.

To get to the heart of any lending scandal allegations would take a little work and understanding. Back in the early 1970s the government passed what was called the Community Reinvestment Act.

This Act essentially required banks to make loans to people in the area in which they were located meaning that if a bank was in a poor section of town than that was who they would end up lending money to.

This was intended to aid in the equality of lending practices at the time; many minorities were discriminated against at this time.

ACORN heavily campaigned for this bill; its purpose went right along with their intent to bring economic and social justice to those in less than desirable neighborhoods.

Theoretically, it would probably be reasonable to assume than that these banks often declined loans to people; most of their clientele were not in the income bracket where home ownership was common.

Enter the popularity of the sub-prime loan; a loan geared towards those in lower income brackets that would normally not qualify due to insufficient income and/ or poor credit history.

The intent behind sub-prime loans would be right up the alley of ACORN; home ownership is part of the American dream, something which they advocated to the less fortunate.

Buying seemed like a good investment too; with the way house prices were going up a person could sell in a few years when the low rate expired and their payments increased.

So banks in communities serviced by ACORN and required to abide by the Community Reinvestment Act were bound to be swamped with sub-prime loan request.

The groundwork for a possible ACORN lending scandal allegation was definitely laid.

Guilty?

The possibility that this organization could be at the heart of an ACORN lending scandal allegation is definitely more than a theory.

The question then remains as to why they formed a housing association to assist people that needed help refinancing their loans and/ or finding alternatives to foreclosure.

It does not really fit the bill of a party guilty of creating the problem in the first place.

Then again what if their mission all along was to create a problem so that their man, Barack Obama, could come along, clean it up, and be the hero? Stranger things have happened!

In the Mean Time

The ACORN lending scandal allegation will probably go the route of every other complaint laid against the group.

When you are as big as they are and have as many friends , especially those in high places, the likelihood of getting convicted for anything short of terrorist activities is not very high.