Skip to comments.A mortgage plan tailored for illegal aliensBanks eager tlo dip into the $44 billion housing market
Posted on 04/08/2005 11:19:07 AM PDT by television is just wrong
Mortgage lenders are eager to tap into what they see as a $44 billion marketplace housing loans for illegal aliens.
Banks across the United States are writing loans based on individual taxpayer identification number, or ITIN. They are easy to get, even if you are ineligible for a Social Security card.
The Internal Revenue Service issues them and expects recipients to file tax returns. The IRS doesn't report illegal aliens to immigration officials.
Mortgage lenders don't care if applicants are legal or illegal. They simply make a business decision in approving or disapproving a loan.
Not everyone approves of the program, however.
"It is a threat to national security and public safety and is morally bankrupt," Dan Stein, president of the Federation for American Immigration Reform, a Washington-based group that favors tighter immigration controls, told Newhouse News. "It breeds ultimate contempt for laws."
Banks "ought to be part of the solution in ensuring that people who apply for mortgages and conduct other business are here legally," Stein said. "They went down the road of making a fast buck in a way that is frankly, in our view, inconsistent with the spirit of patriotism and federal law."
In addition to accepting ITINs, banks are being flexible when they look at credit reports, since many immigrants don't have a traditional credit history. For instance, say lending sources, the bank may consider rent and utility bill payments, or a history of sending money to family overseas as evidence that a customer is a good risk.
One company, Milwaukee-based Mortgage Guaranty Insurance, now offers private insurance on the loans, which reduces risks for banks and makes the mortgages easier to resell. The Federal Deposit Insurance Corp. is helping a group of Midwest banks to develop ITIN programs.
Freddie Mac, the Federal Home Loan Mortgage, is studying whether to buy the mortgages from banks.
Without the participation of a major institution like Freddie Mac or Fannie Mae, the Federal National Mortgage Association which together holds 37 percent of U.S. residential mortgage debt the spread of ITIN mortgages will be limited. Now, most banks making the loans must hold onto them, rather than selling them for cash that could be used for additional mortgages.
I find this story hard to beleive. Who would lend money to an illegal alien? The default rate would be massive.
With several million of them here, there is an untapped market.
it's very easy to get a fed tax id,I have one for a business I once had, just apply to the irs and they send it out plus all the related business tax forms.
I am not going to say it. (What I really feel that is) I am not going to get banned for it. But, Just Damn this is wrong.
What a scam for islamees.
and they don't work with the INS to confirm if they are legal or not
"In addition to accepting ITINs, banks are being flexible when they look at credit reports, since many immigrants don't have a traditional credit history. For instance, say lending sources, the bank may consider rent and utility bill payments, or a history of sending money to family overseas as evidence that a customer is a good risk."
How is this fair?! My husband and I have a few blips (hehe) on our credit and are now trying to repair it so that we can get a house...even the VA Loans go by your credit report. Grrrr!
The key thing here is that with Mexico, everything is a one way street. They come here, we provide all the goodies, we go there, we get thrown out or jailed if they don't like what we are doing.
There is no RECIPROCATION.
It is not fair. It is discrimination. When any group or people is given an advantage over another.
nope, and I got mine via fax, I faxed the form to the irs and they faxed my number back..
There are now enough illegal aliens in this country from Mexico to establish an economic and political power base. Without summarily deporting them, or keeping them from working, voting, entering into contracts or purchasing property, it will be impossible to stop the flow. They will ultimately become a special interest group which places foreign interests above American interests, if this hasn't happened already. We are being invaded and plundered by a foreign country without firing a shot. By the time the liberals figure out that they've let a Trojan horse inside the city gates, it will be too late. Even a delcining Rome knew better than to welcome the Goths into its cities.
Wisconsin set up a special program for mortgages for illegals backed up by the state.
Their goal for the last 50 years is to take over neighborhood by neighborhood, street by street, city by city and now state by state.
No guns fired, I don't know about that because the gang activity in L.A. is pretty bad, and the crime is there too. Our nation needs to look out for their own. We keep trying to look out for the underdog, and that is not necessarilly their own.
Can you please not click on all 50 states with the topic? Thanks in advance.
This does pertain to every state in the nation. Why is there a problem with that?
So do a lot of national issues, but when I click on something in the Michigan section, I expect to see a Michigan specific issue.
"Now, most banks making the loans must hold onto them, rather than selling them for cash that could be used for additional mortgages."
Get more minutemen on the border, beef up border security, send a buncha these lawbreakers home. The greedy banks holding the papers would be in so much trouble.
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