The Neighborhood Assistance Corporation of America (NACA) has been in existence since 1988 as a non-profit community advocacy organization. Like ACORN, it got its start by utilizing the Community Reinvestment Act (CRA) to bully compliance and money from mortgage lenders. In fact, its website brags about its tactics:
“NACA has always taken the junk-yard dog approach – once we grab on we never let go no matter how long it takes. Once the fight was joined, NACA became these institutions’ worst nightmare, doing whatever it took for as long as it took.”
NACA’s founder, Bruce Marks, was a community organizer working on behalf of unions before moving exclusively into the lending industry as a self-described consumer advocate.
The attacks against Fleet Bank in the mid 1980s helped establish the organization. The website states, “After a four and a half year war with Fleet, Marks was instrumental in negotiating an unprecedented settlement. Fleet committed to an $8 billion reinvestment program for low and moderate income people, settled lawsuits in Georgia for hundreds of millions of dollars, and provided $140 million in an unprecedented mortgage program to be administered by NACA.” As part of that settlement, Fleet gave NACA $200,000 to set up the organization. NACA is now a multi-billion dollar organization with 31 offices throughout the country.
Their “American Dream” event at the Baltimore Convention Center runs from November 29 to December 3. NACA holds similar, HUD certified events all over the country.
A NACA spokesman said in a WBAL TV11 interview, “We have every major lender here in the country. If we can document and verify that their mortgage is unaffordable, the lenders can go as low as a 2% interest rate and in some cases reduce the outstanding principle balance to keep people in their home. Any homeowner who has lost their home in foreclosure, and they think the lender may have done them wrong somehow, they can come here and apply for revenue.”
Never mind that it was governmental regulation under the CRA that required lenders to loosen their lending guidelines to allow low income applicants to qualify for sub-prime loans. Then these “advocates” turned around and extorted money from mortgage banks by threatening to file complaints for non-compliance. Now they blame the banks for making the sub-prime loans and pretend they are the advocates for the low income people. They are now in the business of another extortion of the mortgage industry by bullying banks to rewrite the conditions of the loans when the lenders default.
What is NACA trying to achieve by identifying “unaffordable” mortgages? Are they now trying to prevent those sub-prime loans from taking place? Unfortunately, no. They want those loans to continue, but want the banks to bear the costs which they say should be based upon “affordability” rather than the value of the purchase.
Sound familiar? “From each according to his ability, to each according to his need” – Karl Marx. What is most striking is that the applicants only see the handout, not where it comes from or how. No one stops to think about who ends up footing the bill.
I happened to see a timely bumper sticker today that read, “The American Dream is more than a handout.”
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