ACORN Accusations

What ACORN Says
In its defense, ACORN says that only a few of its 13,000 paid canvassers turned in any faked forms. "[T]here are always some people who want to get paid without really doing the job, or who aim to defraud their employer," the group said in an Oct. 10 statement on its Web site. "Any large department store will have some workers who shoplift."

ACORN also says it cannot simply discard suspicious forms on its own, but is required by law in most states to submit to local election officials all the forms its canvassers bring in. ACORN's Whelan told us that its own legal counsel strongly advises that the group do the same in states that don't explicitly require it, because "only election officials are legally able to determine the validity of a voter registration application." But ACORN says that it first flags all suspicious registrations. Staffers call the phone numbers written on completed registration forms to make sure they're valid and also take note of incomplete or duplicate forms. The group says that it alerts election officials to forms that look fishy when it sends them in.

However, it's not clear whether or not those procedures were followed in Nevada prior to a highly publicized raid by state officials on Oct. 7. According to an affidavit by Colin Hayes, a criminal investigator for the secretary of state's office, a probe began July 2 after the county registrar reported receiving a number of suspicious registration forms from ACORN. Hayes did not state whether or not those suspicious forms had been flagged by ACORN before being turned in. Later, during a July 18 meeting, ACORN's lawyer told local and state officials that the group had identified a number of suspicious registrations and "would be willing to provide such information" for further investigation. On Aug. 7, at the request of the county registrar, ACORN supplied copies of documents related to 33 ACORN workers who had been fired for "suspicious" voter registration activities.

Investigator Hayes followed up, confirmed that many registrations were faked, and found a former ACORN worker who confessed to faking most of her forms. After obtaining a warrant based on the affidavit, state officials seized records and computers. Secretary of State Ross Miller was quoted as saying the faked forms included names from the starting lineup of the Dallas Cowboys.

While ACORN says that such raids are part of "a systematic partisan agenda of voter suppression," it is worth noting that in this case, Secretary of State Miller is a Democrat.

Whelan told us that ACORN's national management staff trains local directors and travels extensively to supervise offices, but the 2007 Washington state prosecution makes it clear that quality control is lacking in at least some outposts. Prosecutor Satterberg wrote: "We believe that ACORN's internal quality control procedures were not just deficient but entirely non-existent when it came to the latter stages of their operation in Tacoma." He fined the group $25,000 for failing to exercise sufficient oversight.

How Common Is Fraud?
Election fraud does exist, but hasn't been shown to be widespread. The New York Times reported in 2007 that a five-year crackdown on such fraud by the Bush administration's Justice Department had produced 70 convictions at the federal level, including 40 campaign workers or government workers convicted of vote-buying, intimidation or ballot forgery, and 23 cases of multiple voting or voting by ineligible voters. But the Times described these as unconnected incidents and said the Justice Department had turned up no evidence of "any organized effort to skew federal elections."

Bush administration officials have pushed hard to find such evidence, too hard in one case, according to an investigation by the Department of Justice's internal watchdogs, the Office of the Inspector General (OIG) and Office of Professional Responsibility (OPR). Their report into the firing of nine United States attorneys concluded that the "real reason" for the firing of New Mexico's U.S. Attorney David Iglesias was "complaints about Iglesias's handling of voter fraud and public corruption matters." The complaints included gripes by state Republican Party officials who believed that widespread fraud by Democrats had prevented George Bush from winning the state in the 2000 presidential election. Iglesias launched a task force that worked with the FBI but found that "there was insufficient evidence in any of the cases the Task Force reviewed to support criminal prosecution by the [U.S. Attorney's Office] or state authorities," according to the report of the OIG and OPR. These included cases involving ACORN workers. Republicans charged that Iglesias was showing insufficient rigor in prosecuting the cases.

ACORN and the Housing Crisis
The McCain ad says that ACORN in Chicago engaged in "bullying banks. Intimidation tactics. Disruption of business" and "forced banks to issue risky home loans." In support of these statements, the McCain campaign cites conservative opinion pieces, including a column by Mona Charen posted by the National Review Online, titled "Guilty Party: ACORN, Obama and the Mortgage Mess."

It is true that ACORN has led demonstrations on a number of issues nationwide—predatory lending, immigration reform, neighborhood violence, utilities shut-offs, minimum wage increases. Sometimes the group's tactics are confrontational, veering into civil disobedience. For instance, in the late 1980s, ACORN activists in a number of cities, including Chicago, seized abandoned houses and encouraged "squatting" by homeless people, in an attempt to force local governments to salvage abandoned properties and convert them into low-income housing. The targets of ACORN's protests sometimes describe the activists as intractable or even aggressive. Other ACORN protests are less confrontational; Sen. McCain himself spoke at an ACORN rally on illegal immigration in 2006.

It stretches the facts, however, to say that ACORN "forced" banks to make risky loans, though it has certainly applied pressure on banks to make loans to minority and low-income borrowers. ACORN also has worked directly with banks in a joint effort to increase such lending. In Chicago these efforts date back at least to 1992, after a report by the Federal Reserve Bank of Boston showed that minorities in that city were two to three times as likely to be denied mortgage loans as white applicants, and that high-income minorities were more likely to be turned down than low-income whites. Chicago ACORN then started a mortgage assistance program, in cooperation with five local banks, to help minority and low-income borrowers get mortgage loans.

The mortgages that ACORN worked out with the banks did have lower underwriting standards than were customary. They allowed a higher percentage of a family's income to go to debt repayment, and counted rent and utility payments, not just credit card payments, as evidence of ability to pay back a loan. The loans were also more forgiving of past credit problems, as long as the recipient was making a proven effort to address them. But ACORN provided loan deals only to people who went through counseling on budget and credit issues. In 1992, First Nationwide Bank Vice President Neal Halleran told the Chicago Tribune: "Transaction by transaction, [loans from the ACORN program] would appear to be performing no worse than our portfolio overall." According to the Tribune, First Nationwide had contacted ACORN to initiate the lending program.