Chicago: Banks Allow Mortgages to Illegal Immigrants

Chicago Tribune ^ | December 10 | Avila, Oscar

[Dubya]

A coalition including Citibank, Bank One, and 33 other banks—banded together as the New Alliance Task Force—are rolling out a model loan program meant to bring undocumented Chicago immigrants into the mortgage mainstream.

A few lending pioneers already provide home financing to immigrants with no Social Security numbers, and the task force's hotly debated plan provides guidance to other banks that are interested in following this lead.

Without Social Security identification, banks can quantify applicants' credit risk by contacting employers, landlords, and utilities; but the greater risk of extending credit to these borrowers is reflected by a higher interest rate. However, critics say, the bigger problem is that banks that provide mortgages to undocumented residents are facilitating illegal immigration for the sake of greed rather than acting to improve financial services to legal immigrants.

[gubamyster]

ping

[coloradan]

I tried to get a credit card from one of these banks, and they would not talk to me without my giving them my identity theft number. But, now they will give mortgages to illegals without one. That makes me feel all warm and fuzzy.

[At _War_With_Liberals]

It has been happening for years anyway.

To make it legal will take away all the fraud problems on applications.

[Viking2002]

I bust my @ss to try to keep my credit rating out of the toilet, and these maggots just walk into a bank and get a house financed? THIS COUNTRY IS DOOMED.

[Fester Chugabrew]

A good many of these illegals are probably busting ass and producing. Wait till they find out their property taxes are supporting welfare recipients.

[Tacis]

This is stupid! The bank is not sure to whom it is really lending the money and, therefore, who really owns the property. When the criminal alien is arrested and deported does some other Mexican looking guy simply take over the payments? Should the tenant default and the bank sieze the property, on whom does the bank serve notice? And 25 years from now, when the heirs of the Mexican criminal sue the bank because the bank failed to notify him about the default, who suffers?

It is a good thing that these rules only apply to criminal Mexican illegal aliens or otherwise, poor black folks might be able to own homes.

[facedown]

Heck, we let dead people vote! This is no big deal!

[ikka]

These mortgages are then rolled into Fannie Mae/Freddie Mac mortgage pools - backed and supported by the power of the US govt.

[Dubya]

Just for fun

Freddie Agrees to Settle Inquiry for $125M

(December 10) -- As part of a consent decree with the Office of Federal Housing Enterprise Oversight related to $5 billion in understated earnings over the last three years, Freddie Mac will pay a civil fine of $125 million—more than the $50 million it had suggested but less than a penalty of as much as $200 million initially sought by regulators.

In addition, the company will tighten its accounting controls; enhance its public disclosures; seek third-party monitoring; and provide OFHEO with an update of its efforts. OFHEO was scheduled to release the results of its investigation into Freddie Mac's accounting practices today, most likely focusing on the misdeeds of departing Chief Executive Gregory Parseghian and the board of directors. Investigations by the Securities and Exchange Commission and the U.S. Justice Department are still open and should be completed early next year.

Source: The Washington Post (12/10/03); Day, Kathleen

[Dubya]

American Dream Downpayment Act Passes Congress

(December 9) -- The U.S. Senate and the U.S. House of Representatives have passed S. 811, the American Dream Downpayment Act. The bill will now go to President Bush, who is expected to sign it.

This bill will provide grants to low income homebuyers for use towards downpayment and closing costs. The U.S. Department of Housing and Urban Development will have $162 million to make these grants in the first year.

This bill also includes two other important real estate provisions backed by NATIONAL ASSOCIATION OF REALTORS®. First, the bill would increase Federal Housing Authority's multifamily loan limits in high-cost areas. This will encourage private construction of affordable rental housing in our nation's neediest cities. Second, the bill provides a technical correction to the FHA ARM program, making that product more available to homebuyers. Finally, S. 811 includes language reauthorizing the HOPE VI federally-assisted housing program.

—NAR

[Dubya]

Intl. Taxpayers Need Tax ID for Transactions

(December 9) -- A new Internal Revenue Service rule went into effect in November that would require non-U.S. taxpayers (individual or organization) to obtain a taxpayer identification number (TIN) when selling a property.

This requirement will better enable the IRS to match their withholding forms and other tax-related material to their tax return. The non-U.S. seller will either have had to obtain, or apply for, a TIN by settlement. This provision may impact the timing of some settlements involving Non-U.S. taxpayers but does not change or add to the overall responsibilities of real estate professionals.

On Aug. 5, the IRS published regulations requiring Taxpayer Identifying Numbers in real property dispositions where the seller is a non-U.S. individual or organization. Under the Foreign Investment in Real Property Tax Act (FIRPTA), the purchaser is required to withhold taxes from the non-U.S. taxpayer equal to 10 percent of the amount realized if no TIN is provided. The final regulations now require the non-U.S. taxpayer to provide their TIN on withholding certificates, and other notices and elections under the portion of the tax code that governs foreign investments. Furthermore, the IRS now requires that the withholding application contain all TINs of the parties involved in a sales transfer of real property. While these regulations were published in August, the section pertaining to TINs did not become effective until Nov. 3, to permit non-U.S. sellers who currently own property to obtain a TIN, if necessary.

To learn more about the new IRS rules, go to the Taxpayer Identification Numbers article on the IRS' International Taxpayer section.

—NAR

[gubamyster]

A good many of these illegals are probably busting ass and producing.

From the study:

Tired & Poor: Bankrupt Arguments for Mass, Unskilled Immigration

We at the Center for Immigration Studies estimate that the average Mexican immigrant will use $55,200 more in public services during his lifetime than he pays in taxes. In effect, Mexican immigration acts as a subsidy to businesses that employ unskilled workers, holding down labor costs while taxpayers pick up the tab for providing services to a much larger poor population. It's like any other subsidy: Businesses that receive it want it to continue, but for the nation as a whole, it's a bad deal.

More like, one or two living in the house will be paid under the table and be able to pay the mortgage for the other 10 - 15 living in the same house. All the while, the taxpaying citizens will pay for their social services.

[Atlas Sneezed]

It just shows that the banks are lending on the property, not the borrower's credit. High LTVs and low rates are unlikely.

[caisson71]

When this practice crashes and "legal" taxpayers are left holding-the-bag, we will see the S&L crisis as a cakewalk. Take the interest rates now because it won't be pretty when this goes bad.

[B Knotts]

Couldn't someone file a RICO suit against these banks?

[Rebelbase]

"But, now they will give mortgages to illegals without one. That makes me feel all warm and fuzzy."

Just tell them you're an illegal with address. They'll take care of you.

[Fester Chugabrew]

I hear ya. Don't know whether to trust those figures, but I hear ya.

[B4Ranch]

Poor black folks are divine compared to our needed illegal aliens. The Blacks are no longer at the front of the sympathy line since these criminals walked in with our Presidents nod and wink (permission granted).

You wouldn't want these banks to be accused of profiling and denying loans just because someone isn't supposed to be here, now would you?

What should they do? Call the Border Patrol? What good would that do? We must re-elect President Bush in 2004 so this madness continues.

[Dante3]

Another class of people getting special perks, including reduced college tuition: the illegal aliens who are doing their best to harm this country.