Nobody ever said all the criminal street thugs at ACORN were bright.

The left-wing astroturfers of ACORN’s new front group in California, Alliance of Californians for Community Empowerment (ACCE), were behind a garbage-dumping stunt at a branch of Wells Fargo bank in San Jose, Calif.

News reports consistently depict the players as angry homeowners who spontaneously erupted in a spasm of righteous indignation.

As if.

These “homeowners” were reportedly unhappy about the upkeep at a foreclosed property they thought Wells Fargo was responsible for so they decided to dump uncollected garbage at the bank. The problem is that while Wells Fargo is listed as a trustee for the property, it is actually owned by Bank of America, a longtime ACORN ally. (In recent years Bank of America Charitable Foundation Inc. has given $5 million to the mortgage bubble generators at ACORN Housing Corp.)

In a still from a TV news report on ACORN’s act of political theater (shown above) an angry protester can be seen holding a sign that reads: “MAKE THE BANKS PAY! ACCE.” (Full video is here.)

Whoops.

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Gary Rivlin’s new book Broke U.S.A. does a rather thorough job of chronicling the rise of the subprime lending industry in this country.  The positive attributes of his tome include excellent detail and insight into how subprime lending operates in this country, very concise and descriptive prose, and some intriguing profiles of the lenders and activists involved.  To the book’s credit, Mr. Rivlin describes blatantly deceptive and corrupt lending practices in the early days of consumer finance.  He rightly singles out both employees and management of Household Finance and Fleet Financial for such behavior, as well as Associates Bank and NationsBank.

On the down side, however, Mr. Rivlin’s bias against subprime lenders is apparent.  His profiles of activists are more comprehensive than the lenders, and they are portrayed as crusaders against an industry designed to “make money off the poor”.  He fails to mention the more unflattering angles on certain activists.  Further, while his research delves deeper than just about any other media story, he either deliberately omits damaging truths about the activist community, or failed to research thoroughly enough.  Nor does he ever once mention the litany of non-industry-funded studies that support the cash advance industry.

There are several glaring omissions or distortions in Mr. Rivlin’s book that speak to his unfortunate bias.  The first, and most significant, is lionizing the founder of the Center for Responsible Lending, Martin Eakes.  Mr. Rivlin came up short in his research about Mr. Eakes.  In addition, he largely gives Mr. Eakes a pass for his role in the subprime mortgage meltdown.  Mr. Eakes pioneered the product and created a secondary market for these mortgages.  There’s no getting around that, try as Mr. Rivlin will.

Second, Mr. Rivlin gives borrowers a complete pass on their responsibility in every transaction.  While some of the people who were cheated admit to their own mistakes, nowhere in the book does Mr. Rivlin ever lay out a very simple argument: that borrowers constitute half the transaction, and are therefore half of any problems that exist within the industry.  To that end, Mr. Rivlin plays the typical card of a mainstream media journalist — harping on the sob stories of subprime borrowers, but not providing any compelling stories of how borrowers were helped by subprime lenders.  Anyone reading his book would come away believing that every lender mentioned was only out to cheat customers.

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Even if Congress does move decisively to cut off funding from the self-described network of community organizers who previously called themselves ACORN, the renamed entities are likely to remain potent and well-funded into the foreseeable future, former insiders say.

In fact, donors may find it easier to channel funds in the direction of liberal activists who describe themselves as community organizers now that the sullied name has been dropped, they suggest.

Shortly after ACORN’s leadership announced that it was dissolving on April 1, national and state affiliates repackaged themselves under generic sounding descriptions. ACORN Housing, for example, became known as the Affordable Housing Centers of America.

“Anyone who celebrates the demise of ACORN has celebrated prematurely because they are not going away,” Anita MonCrief, a former Project Vote/ACORN employee, said in an interview. “The network is repositioning itself so it can receive new donations.”

ACORN, which stands for the Association of Community Activists for Reform Now, has received over $53 million in federal funds since 1994, federal records show. Although the U.S. Supreme Court turned away a legal challenge to last year’s congressional ban on public funding, there does not appear to be any concerted effort on the part of lawmakers to have it reimposed.

Moreover, it is worth noting that only four Democrats joined with Rep. Michele Bachmann (R-Minn.) to oppose an amendment that would allow organizations with a criminal history to receive funding. The amendment was submitted as part of a mortgage bill several months before the videotape scandals broke.

“There’s a real boldness on the part of Democrats who want to keep funding ACORN,” Rep. Bachmann said. “They are incredulous about the possibility of losing their majority and they know which side their bread gets buttered on and ACORN is their friend.”

Even so, only a small-percentage of ACORN’s overall financial support comes from the government, MonCrief, explains. “The rest of the money comes from left-leaning foundations and there is no indication these funding sources will dry up,” she said. “There are also individual donors and you also have to include organized labor.”

MonCrief indentified Wellspring Advisors, Vanguard Charitable Endowment, the Rockefeller Fund and the Tides Foundation as the major conduits for facilitating anonymous donations.

“If someone wanted to contribute directly to ACORN without having their name attached to it they could give a  check to Wellspring Advisors, they can give to Vanguard Charitable Endowment, they can give to Tides Foundation,” she said. “There are so many ways ACORN can obtain money through these anonymous donors  and some are connected to the Rockefeller  Fund.  So long as there is an agenda they are going to make sure that money is funneled to them anyway they can.”

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The left-wing architects of the subprime mortgage collapse have yet to be called to account.

Much has already been written about the possibly criminal conduct of Sen. Chris Dodd (D-Conn.) and Rep. Barney Frank (D-Mass.), who relentlessly gamed the political system to clear the way for their friends at government-sponsored Fannie Mae and Freddie Mac to make billions at the expense of taxpayers, but very little has been written about the role that their liberal friends and allies in the private and nonprofit sectors played in bringing the U.S. economy to its knees.

Funded by huckster John Paulson and predatory lending kingpins Herb & Marion Sandler (who also gave generously to ACORN through the years), the inappropriately named Center for Responsible Lending (CRL) laid the foundation for the current financial crisis.

The media seems barely to have noticed that CRL’s puppet, Eric Stein, is now leading the Obama administration’s push to Sovietize the American banking system. Stein, who is now the U.S. Treasury’s deputy secretary for consumer protection, was previously a vice president at CRL.

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On Wednesday, we brought you the story of a little report from the Boston Fed and its role in creating the housing bubble. In that piece, we mentioned an organization you probably hadn’t heard of before, the Center for Responsible Lending. It is one of the more influential–in a bad way–organizations you don’t know. Over the coming weeks, we’ll lift the veil on this organization. Consider today’s installment a primer.

The Center for Responsible Lending is the most influential liberal advocacy group dealing with the financial services industry in the nation’s capital. It is the policy arm of credit unions based in North Carolina and California. Yes, its parent organization has a vested interest in the outcome of CRL’s advocacy.

The Center performs both public policy research and lobbying. (Lots of lobbying, but that is for another day.) Despite its well known left wing prejudices, the media uncritically accepts the Center’s published papers, giving the group extra heft on Capitol Hill.

The Center aggressively criticizes lending discrimination and pushes lenders to increase their underwriting to poor neighborhood where borrowers are less likely to be able to pay back mortgages. The Center is keenly interested in the redistribution of wealth and cares little about the financial safety and soundness of the banks it targets.

Lenders who fail to cooperate with the Center are accused of “redlining,” i.e. illegally discriminating against borrowers in low-income neighborhoods.

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Citigroup executive Eric Eve (pictured below) has resigned from ACORN’s phony, allegedly independent panel of inquiry, a move that removes one of the few people on the panel who could even remotely claim to actually be independent.

If you read between the lines, it also seems to mean Citigroup agrees the panel is a sham.

Eve, senior vice president of Global Consumer Group, Community Relations, at Citigroup, quit after the National Legal and Policy Center pressed Citigroup CEO Vikram Pandit to cut ties with ACORN.

In a letter to NLPC president Peter Flaherty, Citigroup announced Eve’s resignation from the panel.

“We too are deeply concerned about the recent media reports regarding ACORN and, because of those reports, have suspended our charitable financial support and program relationships with ACORN, and we are awaiting the results of the independent audit of ACORN activities now underway,” wrote Natalie Abatemarco, Citigroup’s vice president, Global Community Relations.

“On a related topic, please be advised that Eric Eve has resigned his position on the ACORN Advisory Council,” she added.

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