Skip to content
BOL Conferences
Thread Options
#235877 - 08/24/04 02:12 PM Acorn
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
Have any of you ever had a grant request from a local ACORN group?

I see from reading news articles, etc. that they sometimes work with banks on financial literacy training, LMI loan programs, etc.

Anyone have any experience working with them?
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
CRA
#235878 - 08/24/04 02:33 PM Re: Acorn
Jay-Risk Offline
Gold Star
Joined: May 2004
Posts: 274
New England
The ACORN (Association of Communities Organized for Reform Now) self-described financial literacy program is, unfortunately, the non-profit socially-conscious type of program that presumes that all consumers are "A" borrowers with stellar debt-repayment skills, good credit standing, and consistency in employment. Their heart is in the right place; regrettably, they are about 25 years behind how the mortgage industry and securitization marketplace now operates.

If you're going to give them money, make sure to set milestones and goals. Don't let them have a free reign. The "financial literacy" program that you want from ACORN should be one that will work with low- and moderate-income consumers to help these consumers learn how to enhance their credit profile, how to timely pay bills as a habit, and how to devise methods to become more attractive as a prospective borrower -- which tranlates into getting the best rates and terms.

The reason predatory lending can occur is because the people who are not attractive to "prime" (good quality borrowers) lenders are forced to accept the terms of finance companies, storefronts, and disreputable lenders. If you provide ACORN with funds and require ACORN to approach the training from this angle, then the participants will benefit. Otherwise, if left alone, ACORN will focus the training on "watch out for the big bad bank" and will give the impression to the consumer that they deserve an "A" rate -- regardless of how poor the consumer's credit and borrowing profile is.

Return to Top
#235879 - 08/24/04 02:49 PM Re: Acorn
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
Quote:

he reason predatory lending can occur is because the people who are not attractive to "prime" (good quality borrowers) lenders are forced to accept the terms of finance companies, storefronts, and disreputable lenders. If you provide ACORN with funds and require ACORN to approach the training from this angle, then the participants will benefit. Otherwise, if left alone, ACORN will focus the training on "watch out for the big bad bank" and will give the impression to the consumer that they deserve an "A" rate -- regardless of how poor the consumer's credit and borrowing profile is.




That's why I am asking if anyone had any experience working with them. I want to make sure, if we go down this road, we do this in a way that we have as much control of the situation as possible. I would want to tie the grant to financial literacy training with the bank involved in providing the training.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#235880 - 08/24/04 03:25 PM Re: Acorn
Sinatra Fan Offline
Power Poster
Sinatra Fan
Joined: Jul 2002
Posts: 5,568
New Jersey
A few years ago, we participated in an ACORN-sponsored community housing fair. We gave a sizeable contribution (sizeable for us), and we had a table at the fair, with senior officers present, bilingual employees, a ton of information, and a giveaway promotion for a TV. And as I was standing there assisting inquirers, I could hear the ACORN representative at the next table signing up people to pay dues and become a member of ACORN, and telling people how greedy and evil the banks are and how they need ACORN to protect them. Here we are, giving information and handouts and our time for free, ACORN is hitting up these poor people for dues, and we're the bad guys???

It left a bad taste in my mouth. Since then, we have declined invitations to participate in their housing fairs. But we usually give them a contribution, which I keep a record of for our next CRA exam.
_________________________
Management is doing things right; leadership is doing the right things. Peter Drucker

Return to Top
#235881 - 08/24/04 03:33 PM Re: Acorn
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
Thank you for the real life feedback, Steve. It is very helpful.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#235882 - 08/24/04 03:38 PM Re: Acorn
Sinatra Fan Offline
Power Poster
Sinatra Fan
Joined: Jul 2002
Posts: 5,568
New Jersey
You're welcome! In my experience, ACORN is as aggressive and confrontational as any community group out there. You don't want them angry at you.
_________________________
Management is doing things right; leadership is doing the right things. Peter Drucker

Return to Top
#235883 - 08/24/04 04:43 PM Re: Acorn
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
I am treading carefully here!
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#235884 - 08/24/04 05:21 PM Re: Acorn
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,229
Galveston, TX
ACORN reminds me of two of my dad's favorite sayings.

1. Never hit a nornets nest with a stick.
2. Let a sleeping dog lie.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#235885 - 08/24/04 06:06 PM Re: Acorn
CRAatBOK Offline

Power Poster
Joined: Mar 2004
Posts: 6,172
Further South than I wanna be.
ACORN has a relationship with BOA and US Bank, at least in our area. As far as our relationship with them, we have done a few things with them, but we have our funds invested in organizations that give us information on the actual results our investment. ACORN has also just signed an agreement with H&R Block for low-income tax prep. I don't know the details but after picketing H&Rs headquarters, an agreement appeared. Imagine that.
_________________________
Life is not the way it's supposed to be. It's the way it is. The way you cope with it is what makes the difference.

Return to Top
#235886 - 08/24/04 06:19 PM Re: Acorn
HRH Dawnie Offline
Power Poster
HRH Dawnie
Joined: Aug 2002
Posts: 7,353
Anchorage Alaska
Update your Sunshine file if you're going to step into this hornets nest You probably will need it.
_________________________
Dawn Coursey VP/CRA Queen

CRA Rating is in...Oh who cares...I'm home with the baby.

Return to Top
#235887 - 08/25/04 02:35 AM Re: Acorn
Anonymous
Unregistered

Run as fast as you can. This organization is just an organization designed to black mail banks. If these losers spent as much time an energy towards productive projects for society they could do great things. We had such a horrible experience. Acorn protested in our bank lobby, in our extremely small town because we would not donate $10,000 to their cause. We have an Outstanding rating as well

Return to Top
#235888 - 08/25/04 03:03 PM Re: Acorn
Anonymous
Unregistered

ACORN has been after Well Fargo bank for a while, accusing them of predatory lending. Check ACORN's website: www.acorn.org. They literally walk into banks, with picket signs, and make a public display for customers and bankers. Not a pretty sight.

My advice is that you keep the relationship as neutral as you can. That's what my bank has strived to do. We have donated by means of participating in their "housing fairs" but have not donated funds to their predatory lending publications.

One more thing. On an annual basis, ACORN issues what they call "The Great Divide" report - Home Purchase Mortgage Lending Nationally and in 115 MSAs. This report focuses on lending disparities. The last report they issued is dated Oct. 2003. Interesting.

Return to Top
#235889 - 08/25/04 07:48 PM Re: Acorn
Princess Leia Offline
Diamond Poster
Joined: Jun 2004
Posts: 1,975
Alderaan
Quote:

They literally walk into banks, with picket signs, and make a public display for customers and bankers. Not a pretty sight.




In my prior life as an examiner, they came to our office and picketed because we weren't doing enough to stop banks from redlining, etc.
_________________________
Duct tape is like the force: It has a light side and a dark side and it holds the universe together.

Return to Top