Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Realtors project housing boom if alternate credit scores adopted
San Diego Union ^ | 4 NOV 2006 | Garance Burke

Posted on 11/04/2006 4:40:33 AM PST by radar101

The slumping housing market could get a $200 billion boost from new immigrant home buyers if mainstream lenders start using alternative methods to score credit, a national group of Hispanic realtors said Friday. Creditors like Citigroup Inc.'s Citibank see recent immigrants as a growing market niche, but those who lack Social Security numbers or legal status in the U.S. are often rejected by the three major credit bureaus.

A handful of new credit reporting systems already used by 200 real estate brokers, community groups and mortgage counselors nationwide allows them to calculate risk by evaluating a prospective client's utility bills and rent checks.

Should the new reporting methods gain wider acceptance on Wall Street and among secondary mortgage lenders like Fannie Mae, housing markets in places like California's Central Valley would stand to gain the most, the National Association of Hispanic Real Estate Professionals said.

“Gateway states like California and Texas will disproportionately benefit from the housing boom because so many of their residents are immigrants,” said Gary Acosta, the association's co-founder, speaking from the group's annual convention in Las Vegas. “Boosting homeownership among these populations is a positive contribution to the overall fabric of our society and our economy.”

A study by the Joint Center for Housing Studies at Harvard University shows Latinos will account for nearly one-third of the home-buying pool by 2010. That same year, the disposable income of Hispanics will exceed $1.08 trillion, or 9.2 percent of total purchasing power nationwide, according to the Selig Center for Economic Growth at the University of Georgia.

No law requires that buyers be in the country legally in order to purchase real estate, Acosta said. Citibank, for instance, doesn't require that borrowers be citizens or legal residents of the United States, Citigroup spokeswoman Janis Tarter said.

As with many other minority and immigrant communities, bringing Hispanic families into the mortgage market is a continuing challenge, say officials at Federal Reserve Banks across the country.

Community groups from California to Atlanta have begun offering financial education classes in Spanish as the number of mortgage products available to immigrants and underserved populations has grown.

In Fresno, the housing advocate ACORN Housing Corp. helps clients secure loans by writing alternative credit profiles, which often draw on of months of data from telephone bills and employment records, said Lydia Lopez, the group's local manager. Once ACORN vets the client's financial stability, they send them to Citibank, which finances the home loans.

Automating that process by using programs like First American Corp.'s Anthem service, which generates a credit score using the nontraditional data, will help new immigrant clients win prime-grade financing and acceptance in the secondary market, said Acosta.


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Foreign Affairs; Mexico
KEYWORDS: acorn; aliens; creditscores; illegakimmigration; illegalimmigration; immigrantlist; kissyourassgoodbyeus; lending; mortgages; realestate
Navigation: use the links below to view more comments.
first previous 1-2021-4041-59 next last
To: goldstategop
Makes you wonder how they can sell a $400,000 home to people making barely peanuts in wage compensation.

With five or six families in the home and a at least that many junk cars in the driveway, it can be done.

21 posted on 11/04/2006 5:23:54 AM PST by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
[ Post Reply | Private Reply | To 5 | View Replies]

To: radar101

The story says nothing about ILLEGAL immigrants.

Immigrants who own homes are strong supporters of property rights. Most home owners support individual rights in property and don't give money to eco-fascists at the Sierra Club.

Owners of property vote conservative. Renters in big cities vote rat.


22 posted on 11/04/2006 5:44:05 AM PST by sergeantdave (Consider that nearly half the people you pass on the street meet Lenin's definition of useful idiot)
[ Post Reply | Private Reply | To 1 | View Replies]

To: radar101; Tired of Taxes
What a bunch of scumbags.

Provide easy credit to folks who eventually can't take on the payments (and the high interest rates). The realtors make a killing, while the creditors call for a bailout or "loan guarantees."

Judging from what I have seen happen to folks who get HUD loans, this would only make a bad problem worse.

23 posted on 11/04/2006 5:47:23 AM PST by Clemenza (I have such a raging clue!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: radar101

I'm not surprised. Citibank is a POS company.


24 posted on 11/04/2006 5:50:23 AM PST by Psycho_Bunny (`)
[ Post Reply | Private Reply | To 1 | View Replies]

To: radar101
housing advocate ACORN Housing Corp. helps clients secure loans by writing alternative credit profiles

That's all I need to know...ACORN.....aren't they involved with the 35,000 fraudulent ballots in Missouri...and so far that's all they're suspected of?

25 posted on 11/04/2006 6:00:28 AM PST by cbkaty (I may not always post...but I am always here......)
[ Post Reply | Private Reply | To 1 | View Replies]

To: radar101

This sounds great! I am going to take Spanish lessons, go to Mexico and come back as Montago Diaz. Gimme a house!


26 posted on 11/04/2006 6:12:34 AM PST by montag813
[ Post Reply | Private Reply | To 1 | View Replies]

To: radar101

"ACORN"

Where ever and whenever you see this acronym, fraud will soon follow.


27 posted on 11/04/2006 6:19:41 AM PST by RegulatorCountry
[ Post Reply | Private Reply | To 1 | View Replies]

To: Clemenza
Provide easy credit to folks who eventually can't take on the payments (and the high interest rates). The realtors make a killing, while the creditors call for a bailout or "loan guarantees."

So now we have big crooks who run a scam system who want to acctract little crooks who will scam the scam system because the big crooks will profit when the little crooks scam (try saying that fast). Meanwhile, if you are honest and pay your bills you will be treated like filth -- they will make it hard for you to get a loan and you will be taxed to subsidize the big crooks.

28 posted on 11/04/2006 6:19:47 AM PST by Wilhelm Tell (True or False? This is not a tag line.)
[ Post Reply | Private Reply | To 23 | View Replies]

To: radar101
If this is mostly for illegal Hispanics, the concerned citizens should recruit banks from Mexico to finance the mortgages. That way, the money that illegals send back to Mexico can be returned to the United States instead of lining some Mexican politician's pocket.
29 posted on 11/04/2006 6:23:09 AM PST by Bernard (Democrats are willing to defend terrorists' rights over your dead body.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: larrysh

"... will the person whose NAME the loan is in be able to make up that protion of the payment?"

You're going out on a limb here, assuming that anything other than an alias was used for the mortgage application. The financial industry is losing its collective mind.


30 posted on 11/04/2006 6:24:58 AM PST by RegulatorCountry
[ Post Reply | Private Reply | To 9 | View Replies]

To: eastforker
They simply reposses it, clean it up and resell it.

I hope this backfires and the illegals and other high-risk people they want to recruit end up destroying the houses they "own." I have heard stories where people who know they will eventually default on a loan just let their property fall apart -- they treat the property like the worst slob renter from hell would. They mash up the furniture and bang holes in the walls and anything not firmly attached is stolen (people even steal the pipes to sell for drug money). I hope these greedy lenders who want to offer deals to illegals get piles of rubble when it is time to reposess a house.

31 posted on 11/04/2006 6:30:59 AM PST by Wilhelm Tell (True or False? This is not a tag line.)
[ Post Reply | Private Reply | To 20 | View Replies]

To: sergeantdave
The story says nothing about ILLEGAL immigrants.

Yes, it does. Paragraph #1:

The slumping housing market could get a $200 billion boost from new immigrant home buyers if mainstream lenders start using alternative methods to score credit, a national group of Hispanic realtors said Friday. Creditors like Citigroup Inc.'s Citibank see recent immigrants as a growing market niche, but those who lack Social Security numbers or legal status in the U.S. are often rejected by the three major credit bureaus.

The article uses euphemisms like "new immigrant home buyers" and "recent immigrants", but the article is talking about illegal aliens.

32 posted on 11/04/2006 6:34:15 AM PST by DumpsterDiver
[ Post Reply | Private Reply | To 22 | View Replies]

To: gubamyster

ping


33 posted on 11/04/2006 6:35:13 AM PST by DumpsterDiver
[ Post Reply | Private Reply | To 1 | View Replies]

To: Wilhelm Tell

But being a builder means that all they have to do is send in a crew that is already on the payroll. They could redo a trashed out house in less than a week and make it look brand new.


34 posted on 11/04/2006 6:37:38 AM PST by eastforker (.308 SOCOM 16, hottest brand going.2350 FPS muzlim velocity)
[ Post Reply | Private Reply | To 31 | View Replies]

To: goldstategop
Makes you wonder how they can sell a $400,000 home to people making barely peanuts in wage compensation.

Get a 6% mortgage on a 400K home and you get a $2K monthly payment. Divided by twenty people crashing there, that's $100/person/month

35 posted on 11/04/2006 6:41:28 AM PST by SauronOfMordor (A planned society is most appealing to those with the arrogance to think they will be the planners)
[ Post Reply | Private Reply | To 5 | View Replies]

To: radar101

If I remember correctly, falsifying information on a loan application is a criminal act... But then, what's the big deal if the person applying for a loan is already committing a crime by being here illegally?

I'm just at a complete loss for words, and I'm getting disgusted with the whole thing. Why should ANYONE be expected to follow laws, when we repeatedly see how law breakers are treated... They're given breaks on tuition, given subsidies for food, housing, and medical care, and now, given preferntial treatment in buying property?!?!?!

UN-F*****G-BELIEVABLE!!!!

Mark


36 posted on 11/04/2006 6:44:14 AM PST by MarkL (When Kaylee says "No power in the `verse can stop me," it's cute. When River says it, it's scary!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: MarkL

ACORN needs to be looking down the barrel of a RICO prosecution, and soon.


37 posted on 11/04/2006 9:27:07 AM PST by Wally_Kalbacken
[ Post Reply | Private Reply | To 36 | View Replies]

To: 1_Inch_Group; 2sheep; 2Trievers; 3AngelaD; 3pools; 3rdcanyon; 4Freedom; 4ourprogeny; 7.62 x 51mm; ..

ping


38 posted on 11/04/2006 9:38:28 AM PST by gubamyster
[ Post Reply | Private Reply | To 1 | View Replies]

To: radar101

North American Union, here we come!


39 posted on 11/04/2006 10:00:32 AM PST by hedgetrimmer
[ Post Reply | Private Reply | To 1 | View Replies]

To: eastforker

"But being a builder means that all they have to do is send in a crew that is already on the payroll. They could redo a trashed out house in less than a week and make it look brand new"

BS!

A number of years ago I bought one of those from HUD.

For $21k I got a 4 bedroom home that was nothing but a shell, roof and exterior walls. No windows doors cabinees interior walls plumbing or electrical, every bit of it had been ripped out and sold for scrap.

After rebuilding it I came out with 4 times my investment in profit but you don't do it in a week!

That's how they get them back!


40 posted on 11/04/2006 10:21:59 AM PST by dalereed
[ Post Reply | Private Reply | To 34 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-59 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson