Bank of America has suspended its cooperation with the housing arm of the Association of Community Organizations for Reform Now, or Acorn, pending an assessment of the nonprofit group’s operations, The Wall Street Journal reports.
Acorn Housing, which was founded by the community-organizing outfit Acorn in the 1980s but has its own budget and board of directors, is among the nonprofit groups Bank of America works with on foreclosure-prevention efforts. The parent organization has come under fire over hidden-camera videos seemingly showing staff members offering advice on prostitution and tax evasion.
Michael Shea, executive director of Acorn Housing, in Chicago, said the group is “not surprised that our lending partners like Bank of America want assurances that this won’t happen again.” He said the organization is putting staff members through ethics training and hopes to resume the partnership with Bank of America once it has dealt with the issue.
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