Coming to a neighborhood near you, Lawbreakers (not so) Anonymous.
Posted on 04/07/2005 6:34:18 PM PDT by Coleus
Dalila and William Timal look like any other couple signing a home mortgage. They've picked out paint colors for their new four-bedroom house and can't wait for their 18-month-old son to play in the yard.
But they differ from others you'd sometimes see at a loan officer's desk: Neither is a U.S. citizen nor a legal resident. The Timals came to this country from Guatemala in the late '90s and illegally overstayed their visas.
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They are the beneficiaries of a new program by Fifth Third Bank that bases mortgages on an individual taxpayer identification number, or ITIN. Nationwide, increasing numbers of financial institutions offer such loans, including in New Jersey, where half of the state's estimated 1.6 million foreign-born residents are not American citizens.
Lendersview customers like the Timals as part of their communities, not to mention a critical business opportunity. Just among the nation's roughly 6 million undocumented Latinos is a potential $44 billion market for homes, according to the National Association of Hispanic Real Estate Professionals.
"People need a place to live," said Phyllis Salowe-Kaye, executive director of New Jersey Citizen Action, which offers financial advice to new immigrants. "Over the years, banks have set alternative standards that have allowed them to loan money. In this situation, banks have adjusted their lending criteria."
A person requests an ITIN from the Internal Revenue Service if he or she isn't eligible for a Social Security number, but must file a tax return. And while groups opposed to illegal immigration have pressured the IRS to work with immigration officials, experts say U.S. Immigration and Customs Enforcement concentrates on deporting violent criminals and people suspected of terrorist connections.
Jamie Gilmartin, a spokeswoman for the N.J. Department of Banking and Insurance, said the state's Banking Advisory Board,
(Excerpt) Read more at nj.com ...
Coming to a neighborhood near you, Lawbreakers (not so) Anonymous.
Now we deport the illegals, and they default on their loan, and the bank has to auction the house.
Oops... Not so good of an investment after all.
And when times get tough they split go back to their country and pick up new IDs, and start over while saps in this country pick up the mess.
Same thing for permitting bank accounts and wire transfers. Federal lien against the bank for the amount.
"Lendersview customers like the Timals as part of their communities, not to mention a critical business opportunity. Just among the nation's roughly 6 million undocumented Latinos is a potential $44 billion market for homes, according to the National Association of Hispanic Real Estate Professionals.
"People need a place to live," said Phyllis Salowe-Kaye, executive director of New Jersey Citizen Action, which offers financial advice to new immigrants. "Over the years, banks have set alternative standards that have allowed them to loan money. In this situation, banks have adjusted their lending criteria."
I suggest these institutions who offer "alternative standards" be fined, bigtime. Then this will stop. I can see it now. The family is busted for being illegal, but they have had children here and are established in a new home. So they don't get deported.
This whole idea is just more the TOTAL ILLEGAL IMMIGRANT INSANITY THAT IS TRASHING THIS NATION from the presidency all the way to the "LOWLY" taxpayer that is footing the bill --- and what are we going to do with all those signs that say "UNITED STATES BORDER"...
and the rich pickup cheap real estate...
bump for later.
F&^%ing thanks Mr.President. Just a little more of your chickens coming home to roost. More of the capital available for home loans will be soaked up by illegals paying through the nose for a loan that they will most likely default on.
Furthermore, I imagine being a home owner will certainly present them with a bit of leverage in a court fighting a deportation order.
Once again Mr.President, thanks, or should I say Mr.Presidente?
HMMMMM, the key word here is reciprocation. Americans purchased land in Baja ca. They were put out of their homes at gun point by Mexican court. Yet we turn around and allow them to buy homes here. Now that is sweet. (sarcasm)
It really means nothing to be a citizen anymore. These bank loans/accounts should not come under any taxpayer subsidized insurance programs. When the loans are defaulted on, let the bank eat it. The federal government should inform the bank that they are engaging in activity that will not be covered under any insurance program and they are putting legitimate CITIZENS money at risk and will be held accountable for it.
This will be like another savings and loan disaster waiting to happen. It's like a damned Kafka story. All the other saps that wait to emigrate legally to this country get screwed.
But hey, anything goes. Laws are just "concepts" now.
Regards
My question: will such loans be considerd conforming and therefore able to be guaranteed and sold on the open market?
http://www.unclefed.com/GAOReports/d04529t_sum.html
Internal Revenue Service: Individual Taxpayer Identification Numbers Can Be Improperly Obtained and Used The Internal Revenue Service (IRS) issues Individual Taxpayer Identification Numbers (ITINs) to those who are not eligible for a social security number (SSN) from the Social Security Administration (SSA).
ITIN-related concerns include whether any weaknesses in IRS's controls would allow ITINs to be issued and used for illegal purposes and possible security breaches, whether employers are confused about their responsibilities to IRS, SSA, and the Department of Homeland Security (DHS) for identifying their employees, and how IRS, SSA, and DHS share data when illegal resident aliens receive ITINs.
Because of these concerns, GAO was asked to: (1) describe why IRS created the ITIN, (2) describe IRS's processes and controls for issuing ITINs, (3) do a limited test of IRS's processes and controls, and (4) describe certain concerns and problems for employers and government agencies when ITINs are issued to illegal resident aliens.
IRS created the ITIN in 1996 to improve tax administration. IRS needed a better way to identify the tax reporting of those who could not obtain an SSN to use on tax returns and other tax documents.
The cumulative number of ITINs issued exceeded 7 million by the end of 2003.
IRS receives ITIN applications from the mail, applicants walking into IRS offices, and authorized non-IRS entities. In December 2003, IRS made changes to improve its ITIN controls.
However, IRS remains limited in its ability to verify applicants' identities. For instance, IRS staff does not see most applicants and IRS does not verify the validity of documents.
Before December 2003, GAO staff obtained an ITIN by submitting bogus documents through the mail and used the ITIN to open a bank account and obtain an ATM card. Staff also fabricated an ITIN and used it to obtain a voter registration card.
While limited, this test indicates that IRS's controls could be bypassed and that an ITIN could be used for nontax purposes.
Despite the December changes, the weaknesses GAO exploited remain. Resolving these limitations could be challenging.
IRS has concluded that most resident aliens who have ITINs and earn wage income are not legally employed in the United States.
Given this context, the use of ITINs raises various issues. Employers have raised concerns that when they identify employees and their work eligibility, they could have conflicting obligations to IRS, SSA, and DHS.
These concerns appear to be largely unfounded if employers do what is specifically required. Data sharing--especially of IRS data--may help DHS to target immigration enforcement, but, among other things, officials cited legal restrictions and the potential for employment to be hidden from tax administrators as affecting their decisions about sharing data.
http://www.unclefed.com/GAOReports/d04529t_sum.html
Internal Revenue Service: Individual Taxpayer Identification Numbers Can Be Improperly Obtained and Used The Internal Revenue Service (IRS) issues Individual Taxpayer Identification Numbers (ITINs) to those who are not eligible for a social security number (SSN) from the Social Security Administration (SSA).
ITIN-related concerns include whether any weaknesses in IRS's controls would allow ITINs to be issued and used for illegal purposes and possible security breaches, whether employers are confused about their responsibilities to IRS, SSA, and the Department of Homeland Security (DHS) for identifying their employees, and how IRS, SSA, and DHS share data when illegal resident aliens receive ITINs.
Because of these concerns, GAO was asked to: (1) describe why IRS created the ITIN, (2) describe IRS's processes and controls for issuing ITINs, (3) do a limited test of IRS's processes and controls, and (4) describe certain concerns and problems for employers and government agencies when ITINs are issued to illegal resident aliens.
IRS created the ITIN in 1996 to improve tax administration. IRS needed a better way to identify the tax reporting of those who could not obtain an SSN to use on tax returns and other tax documents.
The cumulative number of ITINs issued exceeded 7 million by the end of 2003.
IRS receives ITIN applications from the mail, applicants walking into IRS offices, and authorized non-IRS entities. In December 2003, IRS made changes to improve its ITIN controls.
However, IRS remains limited in its ability to verify applicants' identities. For instance, IRS staff does not see most applicants and IRS does not verify the validity of documents.
Before December 2003, GAO staff obtained an ITIN by submitting bogus documents through the mail and used the ITIN to open a bank account and obtain an ATM card. Staff also fabricated an ITIN and used it to obtain a voter registration card.
While limited, this test indicates that IRS's controls could be bypassed and that an ITIN could be used for nontax purposes.
Despite the December changes, the weaknesses GAO exploited remain. Resolving these limitations could be challenging.
IRS has concluded that most resident aliens who have ITINs and earn wage income are not legally employed in the United States.
Given this context, the use of ITINs raises various issues. Employers have raised concerns that when they identify employees and their work eligibility, they could have conflicting obligations to IRS, SSA, and DHS.
These concerns appear to be largely unfounded if employers do what is specifically required. Data sharing--especially of IRS data--may help DHS to target immigration enforcement, but, among other things, officials cited legal restrictions and the potential for employment to be hidden from tax administrators as affecting their decisions about sharing data.
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