December 01, 2008

ACORN Sets Their Sites On Wall Street

Obama's buds are at it again.


In what is apparently the first legal action of its kind, an association of community-based organizations has filed a federal civil rights complaint against two of the three largest Wall Street rating firms, charging that their inflated ratings on subprime mortgage bonds disproportionately caused financial harm to African American and Latino home buyers across the country.

The complaint, filed by the National Community Reinvestment Coalition, alleges that Moody’s Investors Service and Fitch Ratings enriched themselves by assigning high ratings to bonds backed by mortgages “that were designed to fail” because of “unfair payment terms and insufficient borrower income levels.”

The firms “knew or should have known” that subprime loans disproportionately were marketed to minority consumers — a process known as “reverse redlining” — and that those borrowers would ultimately default and go into foreclosure at high rates, according to the coalition’s complaint.

ACORN pushed for these loans and apparently want to make sure those unable to pay will continue to not pay and still stay in their homes.

Bankrupting the US economy by this Marxist group isn't complete yet I suppose.

By Stable Hand at 02:27 PM | Comments |