I was on another forum earlier and I started digging into the Federal Housing Enterprise Regulatory Act of 2005. It was cosponsored by McCain and it is often quoted by his surrogates as an example Johnny Mac's attempt to reform Freddie and Fannie (it was never signed into law). As I learned more about the Act, I realized that ACORN-the very group the RNC despises would have benefitted greatly if this Act had been passed and signed into law (do not see the Republicans bragging about that)
Here are all of the details:
The Act would have established the Federal Housing Enterprise Regulatory Agency, which would have overseen Freddie and Fannie (along with some other organizations/agencies)
But it also allowed the Federal Home Loan Banks to be exempt from certain reporting requirements (deregulation). The reporting requirements date back to the Securities Exchange Act of 1934. The purpose of SEA of 1934-The act outlaws misrepresentation, Manipulation, and other abusive practices in the issuance of securities. It created the Securities and Exchange Commission (SEC) to enforce both the Securities Act of 1933 and the Securities Exchange Act of 1934.
source:
http://www.answers.com/topic/securities-exchange-act-of-1934Some of those exemptions were to be regarding: certain reports, proxies and registration and regulation of brokers and dealers
sources:
http://www.govtrack.us/congress/billtext.xpd?bill=s109-190http://www.law.uc.edu/CCL/34Act/index.htmlhttp://www.fhlbanks.com/Here is some information on the Federal Home Loan Banks and its programs:
Affordable Housing Program and Community Investment Program
The affordable housing and economic development programs of the twelve FHLBanks consist of grants and low-interest loans to member financial institutions to use to provide financing for economic development and housing activities.
FHLBank grants and low-interest loans are catalysts for the construction and revitalization of housing targeted to people with low- and moderate-incomes. AHP- funded projects serve a wide range of neighborhood needs; many are designed for seniors, the disabled, homeless families, first-time homeowners and others with limited resources.
AHP Eligibility
• AHP grants can be used to fund housing for families or individuals with incomes at or below 80% of the area median.
• For AHP funded rental housing, 20% of the units must serve households with incomes at or below 50% of the area median.
• • Funding is awarded only to financial institution members of the FHLBank System working in partnership with a community sponsor organization
for more info on the programs of FHLBanks:
http://www.fhlbanks.com/html/programs.htmlThis Act would have benefited ACORN because of the following:
One of the programs under FHLB has the following eligibility:
• Funding is awarded only to financial institution members of the FHLBank System working in partnership with a community sponsor organization
ACORN is one of those community sponsor organizations. Two examples of ACORN benefiting from the program are below:
Arizona ACORN (located in Phoenix) was the sponsor organization that got a subsidy of $300,000 for 30 ownership units (pg.14 of source)
ACORN Housing Corp. of Illinois (Chicago) was the sponsor organization that received 2 subsidies of $150,000 for 15 ownership units each (pg 18 of source)
source:
http://www.fhfb.gov/GetFile.aspx?FileID=6773I do find it ironic that the two ACORN groups who I could find that benefitted from this program are in AZ and IL.