Mortgage Mess

" These undercover video showing acorn shameless corruption have gotten a lot of attention. The so called community group is that had been involved in a lot of shady shady dealings and now there's more. Involving illegal aliens and home loans John fund from The Wall Street Journal joins us live. To talk about this. Right so John we've heard about the fact that one of the things -- for -- to do is supposed to help people in poor communities. Voter registration. Opened put through. A mortgage applications and stuff like that. Course we assumed they were American citizens. Not so fast. No I think for the last few years at least seven cities including New York acorn has been helping illegal aliens get housing. And real houses now of course illegal aliens don't have Social Security numbers right normally so acorn helpfully provides them with the taxpayer identification number. That they can use and these loans no interest loans are down payment loans. All kinds of subsidies. Because these are also poor people in many cases. The problem is. This kind of lending. Was exactly that helped fuel the sub prime mortgage crisis that led to the collapse of housing bubble. That is led to a lot of our financial difficulties it's a small part but it's an outrageous part because these are illegal aliens they should not be getting the benefits of these government program -- you think. -- I know it's hard to quantify and I I don't know that the number exist but you've got to figure if these people came in. And asked for the applications and -- acorn helped them get these home mortgages and they have since defaulted. That adds billions and well millions perhaps and millions of dollars. -- the big bucket RNA it's symbolic of of course the whole sub prime mess because acorn remember was actively lobbying banks. Note to lend more money to people. Lower your interest rates and if you don't we're going to pick if you. We're going to demonstrate in front of their officers -- going to demand the federal government not purchase the expander operations -- merge with other banks clearly the federal government. Had an idea this was going on and yet they've done nothing. Under both administrations the bush administration and the Obama administration there's been this incredible desire to pump out loans to -- homeownership. And we have not learned the mistakes that cost Fannie Mae and Freddie Mac to collapse we are perpetuating those same problems because we are still. Propping up homo all home mortgages from people who have defaulted. This is such -- crazy story because you would think that acorn -- first help them become citizens. You know let's fill out the application here in this country illegally and -- like it and nobody. The survey to. -- the founder of acorn has a theory. It's in his new book by the way citizen wealth and -- maximum eligible participation in all government programs. What wrestle for radicals want is they want to change our system but first overloading it with too many clients too many people getting government benefits when the system collapses under the dead weight of all of those subsidies and all of those recipients. Then they think they can have dramatic social change for you -- more egalitarian society it's just crazy now. At noon on The Wall Street Journal com you've got something new that is coming out and I know you don't wanna spill all the means but he. This case. Well I think and I'm wsj.com. And I think also a big government dot com there's gonna be very interesting story about. People with ties to acorn inside the Obama White House. Then people Friday I don't think so no but people who have jobs there right now ties to acorn and acorn affiliated campaigns in the past. Right we'll be watching thank you and we'll be reading John fund Wall Street Journal are."