Bank of America Corp has suspended its current commitments to ACORN Housing, an affiliate of Association of Community Organizations for Reform Now (ACORN), a scandal-hit U.S. liberal grassroots group, the Wall Street Journal said on Monday.

The banking company will not enter into any further agreements with ACORN or any of its affiliates, pending assessments of the organization's operations, the paper quoted a Bank of America spokesman as saying.

ACORN Housing has worked with Bank of America and other large banks on foreclosure-prevention efforts, the Journal said.

Earlier this month, both houses of the U.S. Congress passed legislation that would cut off federal money to ACORN, after a conservative activist secretly filmed Acorn employees giving tax and housing advice to a couple who said they wanted to set up a brothel.

Bank of America takes recent allegations made against ACORN and ACORN Housing Corporation employees very seriously, the paper quoted bank as saying in a statement.

Michael Shea, executive director of Acorn Housing, told the paper: We're not surprised that our lending partners like Bank of America want assurances that this won't happen again.

Bank of America and ACORN could not be immediately reached for comment by Reuters outside regular U.S. business hours.

(Reporting by Ajay Kamalakaran in Bangalore; Editing by David Holmes)

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