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  • Nasty NACA: The Housing Shakedowns Continue

    Like the more infamous ACORN, the Neighborhood Assistance Corp. of America is another leftist group waging war on free enterprise while filling its own coffers by using shakedown tactics. NACA variously accuses banks of engaging in predatory subprime lending or ignoring the needs of low-income communities. And the group likes to get nasty. A profile of the group in today’s Wall Street Journal notes that the group

    … salts its Web site with photos of executives it accuses of standing in the way of helping homeowners – emblazoning “Predator” across their photos, picturing their homes and sometimes including home phone numbers. In February, NACA, as it’s called, protested at the home of a mortgage investor by scattering furniture on his lawn, to give him a taste of what it feels like to be evicted.

    In the 1990s, [the group’s founder and CEO] Mr. [Bruce] Marks leaked details of a banker’s divorce to the press and organized a protest at the school of another banker’s child. He says he would use such tactics again. “We have to terrorize these bankers,” Mr. Marks says.

    Taxpayers should note that they are helping fund this group. The Journal reports:

    The organization has been allocated $34.5 million from a new federal program to counsel distressed mortgage borrowers, to be paid to groups such as NACA little by little as they provide counseling. NACA’s slice is nearly 10% of the program’s funds …

    The idea of taxpayers funding Leftist street theater and harassment is nothing if not infuriating. But perhaps an even bigger reason for concern is this group’s contribution to the lowering of lending standards that led to the implosion of the mortgage industry. David Hogberg describes the group’s methods as a “peculiar and successful formula: Help responsible borrowers get bank loans and then attack the banks until they also agree to make loans to irresponsible borrowers.”

    NACA extracts concessions from banks and uses the proceeds to fund its own mortgage program. But, according to Hogberg, author of recent report on NACA for Organization Trends, the group rigorously screens applicants to its own mortgage program. Hogberg writes:

    In a 2001 San Antonio Express-News article, NACA regional director Pam Brooks acknowledged that only about one in four persons completed NACA’s mortgage program after signing up for it. A National Mortgage News article from 1998 noted that while NACA had bank commitments of $1.3 billion over a four-year period the banks had made only $250 million for mortgages to NACA qualified borrowers.

    Apparently, NACA does train previously high-risk borrowers who are ready to become financially responsible. After all, what type of person would be willing to wait up to a year for a loan approval, accumulate several months of savings, repay delinquent loans, and participate in NACA’s program of political activism? By weeding out irresponsible borrowers, NACA can claim that its “track record of helping people who have credit problems become homeowners or refinance out of a predatory loan debunks the myth that high rates and fees are necessary to compensate for their ‘credit risk.’”

    The irony is that NACA should be commended for its systematic and exacting efforts to help low-income people become homeowners. But Bruce Marks’s responsibility toward the poor is more than matched by his irresponsible attacks on banks. He stalks and demonizes and harasses bank officials into making mortgage loans to the sorts of negligent low-income people he would throw out of his own program.

    It’s time for banks and other corporations to stop selling the rope that gets them hung by agitation groups like NACA. The free enterprise system is at stake.

    Cross-posted at InsiderOnline.

    Posted in Economics [slideshow_deploy]

    16 Responses to Nasty NACA: The Housing Shakedowns Continue

    1. Spiritof76, New Hamp says:

      I think the banks should hire Black Water Co. security to fight the lawless goons of NACA. The private security firm has experience fighting the Al Queda helpers. At some point in time, people need to protect themselves as their government will not enforce the laws, worse yet, sanction the lawless behavior such as NACA and illegal immigration.

    2. Pingback: » Financial News Update - 05/20/09 NoisyRoom.net: “Extremism in the defense of liberty is no vice. Moderation in the face of tyranny is no virtue.” Barry Goldwater

    3. Barb -mn says:

      “We have to terrorize these bankers,” Mr. Marks says.

      what a threat. Does anybody hear the threats? Even more so today?

      We have to terrorize this democrat failure to lead (dfl, not mine but it's perfect,) and all those the democrat failed leadership cradles and coddles. Otherwise known as irresponsible people. Close to 46%.

      Nobody has a "right" to own a home. Everyone has a right to PURCHASE A HOME WITHIN THEIR OWN FINANCIAL MEANS. There's plenty of public housing available to those who won't afford their own.

      Nobody signs anything unless it is understood. Especially one of the biggest purchases of a person's life. If it's an excuse today that it wasn't understood at the time, then let the consequences teach them, like it's taught many before. PERSONAL IGNORANCE ISN'T the expense of taxpayers.

      This whole thing is a set-up from government to bankers to realtors to (some)purchasers?… insiders everywhere.

    4. Thomas, Anchorage, A says:

      High five to the suggestion for private security, even though Blackwater is no longer alive in name.

      Let's see Mr. Marks terrorize a banker with a 12-gauge in a state with a Castle Doctrine bill.

    5. Pingback: Nasty NACA: The Housing Shakedowns Continue

    6. janejim,roseville says:

      Banks have huge debts, but they're getting a helping hand from the federal government. If you have overwhelming debt–perhaps from bad investments, or maybe a job loss, a medical crisis or just plain overspending–you're probably on your own. Check the website http://obamadebthelp2009.blogspot.com
      to see if they can help. I am glad I did read it before I talk to my CC company and it helped – Jane Jim, California

    7. Robert Stark says:

      If you find fault with the NACA people, then I know it must be a good program. Nothing personal but you are primarily a poitical organization and do little or nothing to directly provide help to others.

    8. Gary, Massachusetts says:

      NACA is a great program. I would not be owning a house if it were not for NACAs assistance.

      What a bunch of sensationalism on this site. Twist the facts to make it fit your fear mongering agenda.

    9. melissa, charlotte says:

      Never heard of it till now. But if this many conservative jerks are against it, it must actually help people. I pay taxes so with 80 billion going to the banks, i should be getting a free house. Terrorize them more!

    10. Frank Washington Sta says:

      I have been working with NACA now for a bout a year and I still have no agreement with my loan servicer and I have been trying to get a hold of NACA since NOV 2009 to get some info but never get a call back never get my e-mails answered..this is bull

    11. Jamie Orange County says:

      Frank, Has NACA moved your "save my home" paperwork since November? I was hoping they would be more responsive than my lender who can't be bothered to return any of our 6 pages of calls….Thanks CitiMortgage! This is a perfect example of the reasons why homeowners, who want to work with their lenders, are reaching out to organizations like NACA. It's out of sheer desperation. Citi (and others) claim they want to work witht the homeowners, but after you jump through all their hoops, your account goes dark, into the abyss! I really can't believe I can't get a call back from my lender…scary!!

    12. Bekele Gedion, Manha says:

      NACA Nonprofit Program,

      About three month ago a friend told me to contact NACA in order to get help on our fight to modify our B of A predatory and unaffordable mortgage. My experience working with the NACA team has been disappointing and concerning.

      This morning I spent 1 hour speaking with Kelly Greene on why our file was denied by B of A for the reasons of “financial”. The conversation was focused on my house whole spending and how much I spend on my Kids, Church and Dog instead of the B of A loan mortgage and the fact the loan was predatory and unaffordable.

      In the past three month not one NACA representative including Kelly Greene reviewed and discussed with us the Loan Interest, Principle, Property Tax, and Home Insurance amount and compared it to our current income after taxes and identified if our mortgage is predatory and unaffordable.

      The sad part of it all is the help we and suffering Americans are seeking for can easily be identified if simple consideration is afforded to hard working taxpaying citizens like my wife and me. Banks predatory and unaffordable mortgages can be identified by reviewing the total monthly payment amount of (Principle, Interest, Property Tax, and Home Insurance) meets the percentage criteria set to the total income after taxes. (initial debt to Income ratio)

      Form the discussion with Kelly Greene, I feel that she and most of NACA team is focused on personal spending vs. holding the Banks accountable to do right by all suffering Americans like my family. I was more discouraged and convinced that NACA cannot correctly represent Americans like me against Banks. We are victims of the Banks predatory practices during the 2005-2006-2007- 2008 times. Now our government is spending our hard earned tax money to support a Nonprofit organization like NACA only to waste our money and destroy the hopes of hard working Americans like myself.

      Thank you NACA

    13. marty goldland says:

      Naca is a wonderful company who is helping people fight aganist people like you. they are taking over. And i hope they put all of you out of business.Hurray for Naca! the tides are changing in America, and you might as well enjoy the ride1 The proof is in the pudding.

    14. PATRICIA, CRESCENT C says:

      DOES THIS MEAN IF YOUR A WHITE AMERICAN, YOU CAN'T GET HELP?

    15. PATRICIA, CRESCENT C says:

      DOES THIS MEAN IF YOUR WHITE AMERICAN, YOU CAN'T GET HELP?

    16. Donna, Marcus Hook says:

      going to Naca workshop in Philly this weekend. Am I wasting my time…..is there anyone from Philly that has done the program????

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