One of the nation's biggest banks has cut its ties with ACORN, the community organizing group after an undercover video caused a fire storm of bad publicity, for ACORN.
An undercover crew visited the local office in National City and asked an ACORN organizer for help in bringing underage prostitutes across the border. The staffer, identified as Juan Carlos Vera, gave advice to the filmmakers. Although Carlos Vera claims he reported the discussion with police, and police verified that account, ACORN fired Carlos Vera days after the video came to light.
Now, the fallout continues.
Bank of America is suspending its work with ACORN's housing affiliate. ACORN helped low income buyers get loans from Bank of America and assisted the bank's clients whose homes were threatened with foreclosure.
One expert said he understands why Bank of America is pulling the plug, but said some struggling homeowners will suffer.
"The community organizations are the only people serioiusly dealing with the foreclosure process on the community level, and when you take somebody like ACORN out of it, it's going to have an impact," said community investment expert, Jim Bleisner.
Congressman Darrell Issa said Bank of America did the right thing, by cutting ties with ACORN. Issa said ACORN's leadership is a corrupt and dishonest, and cannot be trusted to help homeowners