Michelle Malkin on Citibank-ACORN mortgage scam

"GOP California Gov. Arnold Schwarzenegger now wants an investigation. But neither the Terminator nor any other California public official raised a peep when the very same San Diego ACORN office publicly announced a partnership with Citibank to secure home loans for illegal aliens.


In 2005, Citibank and ACORN Housing Corporation — which received tens of millions of tax dollars under the Bush administration alone — began recruiting Mexican illegal aliens for a lucrative program offering loans with below-market interest rates, down-payment assistance and no mortgage insurance requirements. Instead of the Social Security numbers required of law-abiding citizens, the program allows illegal alien applicants to supply loosely monitored tax identification numbers issued by the IRS.

The San Diego Union-Tribune reported that "undocumented residents" comprise a vast market representing a potential sum of "$44 billion in mortgages." Citibank enlarged its portfolio of subprime and other risky loans. ACORN enlarged its membership rolls. The program now operates in Miami; New York City; Jersey City, N.J.; Baltimore; Washington, D.C.; Chicago; Bridgeport, Conn.; and at all of ACORN Housing's 12 California offices.

San Diego ACORN officials advised illegal alien recruits that their bank partners would take applicants who had little or no credit, or even "nontraditional records of credit, such as utility payments and documentation of private loan payments."

The risk the banks bear is the price they pay to keep ACORN protesters and Hispanic lobbyists from the National Council of La Raza screaming about "predatory lending" off their backs. These professional grievance-mongers have turned the 1977 Community Reinvestment Act — which forced lenders to sacrifice underwriting standards for "diversity" — into lucrative "business" opportunities. Or rather, politically correct blackmail."