Diary

ACORN Foreclosure Counseling Funding Sources

ACORN has become directly involved in stopping foreclosures by doing foreclosure counseling with “housing experts.” Recently I spoke with the ACORN Delaware office purposely representing myself as a person who is in foreclosure in the State of Delaware to elicit details of the counseling. The polite and knowledgeable representative in the ACORN Delaware office answered my questions in full.

I told her that I needed to forestall a foreclosure. She informed me there were documents that I need to provide to the ACORN office to go “through the foreclosure counseling process.”

Here is a list of those items I needed to provide at “my appointment”:

1. Current mortgage statement
2. 2008 Federal Tax Return
3. Sheriff’s Sale Date
4. Current W-2
5. If you are disabled they require the follwing documents:
a. Current VA Award Letter
b. Current SSI award Statement

ACORN was involved in the subprime mortgage scandal, which set off a disastrous chain of events that affected the financial system globally. Suddenly ACORN is now trying to clean up their part of the mess by counseling people in foreclosure as well as breaking into foreclosed home.

The question of the day is: Where is ACORN getting the funding for this “foreclosure counseling?” The answer is simple. It is coming from partnerships with different companies, organizations, and a lawsuit against Household which HSBC agreed to settle for a sum of approximately $72 million dollars.

HSBC, which was aware of the dispute with Acorn when it bought Household, is thought to have agreed to pay $72m as part of the agreement.

The bank refused to say what the total sum would be, but denied there would be a “material financial impact” on the parent company. Household contributed $649m to HSBC’s profits in the six months to 30 June – 9 per cent of the total – despite having come into the bank’s stable only three months earlier.

Some of their partners involved in this foreclosure counseling are Fannie Mae, Metlife Foundation, H&R Block and Jackson Hewitt.

Fannie Mae awarded ACORN Housing Corporation a &.8 million dollar grant to partner in foreclosure counseling.

Alton Bennett, President and Michael Shea, Executive Director announced today that Acorn Housing has been awarded a $7.8 million national grant. This will allow us to dramatically expand our foreclosure prevention counseling work across the country. Thanks to this funding, between April and December of this year, we will be able to help nearly 25,000 families in danger of foreclosure stay in their homes!

The grant to support ACORN Housing’s foreclosure counseling intervention efforts was provided by funds from the National Foreclosure Mitigation Counseling Program. Approved by Congress in the FY08 Consolidated Appropriations Bill, the National Foreclosure Mitigation Counseling Program is administered through a competitive application process by NeighborWorks® America, within guidelines defined by Congressional legislation.

Currently ACORN and Sherwin Williams are in negotiations to settle a lead paint base action. ACORN will more than likely receive a settlement from the company with figures reaching into the millions. This money will flow freely into ACORN’s coffers. Which of the ACORN-affiliated 200 plus organizations will benefit from the settlement? With all this private funding, how many more federal dollars will they receive from the corrupt Fannie Mae?