Posted on 03/26/2019 7:17:40 AM PDT by SeekAndFind
When Barack Obama implemented his unilateral amnesty for illegal aliens who claimed to have entered this country before the age of sixteen, the illegally amnestied illegals qualified for many benefits.
One of these were FHA loans.
FHA loans are government-backed mortgages meant for poorer Americans unable to qualify for normal mortgages. Democrat abuse of the FHA helped lead to the Great Recession and in the years afterward, FHA insured loans hit losses of $70 billion. By 2012, the FHA was $16 billion in the hole and had to be bailed out. The delinquency rate for FHA loans is still more than three times higher than normal loans, and depending on the period, have hovered between 8% and 14%. Time to bring in the illegal aliens.
When Obama illegally implemented DACA, a program exempting certain illegal aliens from government action, they were also allowed to apply for FHA loans. How many illegal aliens obtained FHA loans?
In December, a letter from three Senate Democrats claimed that HUD barred “approximately 800,000 individuals approved for DACA from FHA-insured mortgage loans”. This refers to the total number of DACA illegal aliens and it’s unknown how many of them have obtained FHA loans in past years.
Ellie Mae’s millennial tracker estimated that the average size of an FHA loan to millennials is $186,454. Potential exposure to illegal alien mortgages could then climb as improbably high as $150 billion.
It’s unknown how many illegal aliens have taken out FHA loans, but some media stories have cited loan officers for whom illegal alien FHA loans represent a significant percentage of their business.
The Trump administration has applied the brakes to this avalanche of taxpayer-insured mortgages to illegal aliens. The Department of Housing and Urban Development (HUD) had begun notifying lenders that the FHA was no longer in the illegal alien mortgage business. The reasons were common sense. DACA illegal aliens, or in media spin, DREAMERs, were not legal residents and weren’t being legalized.
Under Obama, FHA rules had been bent so far backward that people who were not only non-citizens, not only non-permanent residents, but weren’t even legally here, were having taxpayers guarantee their mortgages. Not only hadn’t the Democrats learned anything from the Great Recession, they were determined to make the irresponsible behavior of the FHA a decade ago seem sober and sensible.
And they aren’t giving up.
The December letter by Senator Menendez, who had recently been on trial for corruption charges, Senator Booker, on whose watch the $100 million poured into Newark public schools dissipated, and Senator Cortez-Mastro, who had been accused of taking dirty money, claimed to be, “appalled that the Trump Administration would exploit a federal government program to deny Dreamers an opportunity of owning their own home.” But it was the Democrats who had exploited a federal government program meant for poor Americans to benefit not only foreigners, but illegal aliens with no right to be here.
The letter by the three Senator Democrats falsely claimed that President Trump was targeting a “portion of the American public”, when in fact illegal aliens are not part of the American public. They demanded, “sound and unambiguous legal reasoning” for the move. The sound and unambiguous reasoning would be that illegal aliens are not legally resident in the United States and therefore do not qualify for loans.
Much of the furor over FHA loans for illegal aliens was stirred up by Dani Hernandez, an underwriter for NewCastle Home Loans. NewCastle in Chicago markets aggressively to DACA illegal aliens, declaring, “Don’t let the political climate worry you. DACA recipients are eligible to buy a home.” It also assures the illegal aliens that they can qualify for FHA loans and it “specializes in working with DACA recipients.”
Prospective FHA borrowers are also informed that they can get a loan with a credit score as low as 500 and a 50% debt-to-income ratio.
The illegal alien mortgage business, built on the backs of American taxpayers, is obviously profitable. But it’s also a silent nuclear weapon threatening mass destruction of the economy in case of deportations.
The more illegal aliens end up with FHA loans, and as those FHA loans are turned into Ginnie Mae Mortgage Backed Securities, deporting DACA illegal aliens would risk mass defaults on FHA loans which are backed by American taxpayers. Quite a few Ginnie Mae bonds are being held by Japan and China.
That’s why HUD’s move of stopping the flow of FHA loans to illegal aliens is so vital and important.
Not only do FHA loans endanger our economic security, they also endanger our national security. Their very existence serves as political leverage to prevent the government from enforcing the law. Every illegal alien mortgage not only robs American taxpayers, but puts them at risk of even worse losses.
And considering the role of mortgage backed securities in the Great Recession, the threat is real.
However, HUD has carefully avoided taking a clear position to prevent the inevitable lawsuits and overrides by Obama and Clinton judges embedded in the federal judiciary. Instead HUD officials have successfully warned off many lenders by creating ambiguity about the status of DACA FHA loans.
The riskier illegal alien FHA loans appear, the more irresponsible taking them on will seem. And lenders will be aware of the shadow of the “False Claims Act” hanging overhead if they bite on illegal loans.
This is far from an ideal solution. But it’s an understandable response by a crippled executive branch that has had its legal powers stripped from it by Democrat activists operating under the guise of judges.
But taxpayer-backed mortgages for illegal aliens are only the tip of the tottering FHA iceberg that President Trump needs to begin shutting down to avoid another recession caused by bad loans.
FHA loans to non-citizens are also extended to non-permanent residents and even to “refugees”. The Office of Refugee Resettlement had even been promoting Freddie Mac’s Islamic Sharia-compliant mortgages for Muslim “refugees”. Foreigners here under Temporary Protected Status, a category that the Trump administration has begun winding down, are also potentially eligible for FHA loans.
The FHA is deeply dangerous and troubled. It is in desperate need of reform.
American taxpayers have long been exploited by the FHA as a piggy bank to pay off Democrat voters. But DACA FHA loans have taken this a step further by taking the economy hostage for illegal aliens.
The FHA loan was created to serve Americans. If it is to continue to exist, it should only serve Americans.
There has never been any reason given why the United States government should be extending its credit on behalf of foreigners, whether they are residents, temporary workers or, let alone, illegal aliens.
The risk of such loans has been rolled into the overall risk for Americans. And the buck was passed.
The artificial stimulation of the housing market isn’t reason enough for the government to be putting the economy at risk and taxpayers on the hook for the illegal aliens whom Democrats hope to turn into voters. DACA was an illegal policy. FHA loans for DACA recipients piles illegality on illegality.
American taxpayers should be let off the hook for illegal alien mortgages before the cost grows too high.
Beautiful!
Winning!
WHY ARE WE ALLOWING CITIZENS FROM OTHER COUNTRIES
WHO ENTER US ILLEGALLY GRANT THEM RIGHTS
THAT THEIR COUNTRY DENY US HAVING
WHEN WE ENTER THEIRS LEGALLY TO VISIT OR RETIRE ???
The issue of sovereignty should not be allowed to get twisted into being propagandized as “White Nationalism”. Use of that term is usually directed when the immigration issue is brought up to devalue of the protections an American citizen have by being one by allowing the hoards illegally entering the US through the Mexican border avoiding the reciprocal the 2nd class treatment of American citizens get in Mexico.
Today’s so called democrats insist Americans must allow illegals storm in here by the hundreds of thousands despite their cost to us of billion$ in tax dollars,which is never enough. Tax money that should be going to our citizens for their sustenance,health,education,and housing even infrastructure needs. But Americans must do the tax flagellating punishment because we’re the very rich United States and must divert those billion$ to fill the needs of those poor illegals plus give them the right to vote. Sustained by our tax money which our chuldren’s children if not aborted will be paying for.
What never gets mentioned in all of this is the lacking reciprocal treatment. If we applied that policy Because when an American citizen ever tries getting any of those handouts including voting when going to where the great undocumented come from That would never happen. Would this continue ?
Bump
More winning.
YEA!!!! President Trump.
Some judge will intervene and rule that American taxpayers must hand out mortgages to residents of Mexico City. Why should Mexicans be forced to move to racist America to get their free money?
‘Great Post’ ... Thank you!
We were doing that? What the heck? My family members have had trouble getting good loans for mortgages AND they are citizens and work their butts off.
It’s time we consider illegal entry by any person who is a non Mexican citizen illegally entering the United States through the US Mexican border a defacto Mexican citizen with limited Mexican constitutional rights subject to their laws while transiting. As well as any Mexican citizen entering illegally exempting those who do so legally and meet US citizenship requirements. All subject to reciprocal citizen treatment a citizen of the United States receives in Mexico through the Mexican constitution on citizenship .
Besides being unable to vote one must also be a citizen to own land and Mexico is very restrictive about granting citizenship. Because of that a US citizen besides not being able to vote,and cannot have title in their name to any land property in Mexico. And until that is changed the US and the affected state should consider making that reciprocal. Prohibiting any illegal entrant employment, voting, and land ownership privileges fully enforced ..
In other words Sneak into this country before expulsion no job no voting no landowning ..
Wow!
Obama truly was HELL bent on destroying this nation, and Trump saw it.
Now I hope he stops supporting illegals with ANY benefits intended for LEGAL US citizens, and lets every AMERICAN—especially those on welfare, food stamps, and SOCIAL SECURITY—know he is doing it to PROTECT THEM from having the DEMONRATS steal taxpayer money from them and using it to buy—VOTES!
Go through the occupant rolls in public housing and Section 8.
Time to apply the squeeze.
All together now.....
WINNING!
Not tired of it yet.
KYPD
Here's the most important thing we know about President Trump: he's NOT A GULLIBLE FOOL...
Why the heck did invaders have access to mortgages? One can’t help but wonder if some of those homes were used in the exploitation of other invaders.
Obama could spend 10 billion before breakfast and no one cared. President Trump moves one billion after 2 years of effort and everyone loses their mind.
Go through the occupant rolls in public housing and Section 8
Have to make law clear that children of illegal aliens are not U.S. citizens due to their age and cannot qualify an illegal alien family for Section 8.
Thank you for posting.
I would say they didn’t learn anything from the last time. But they did. Cause a financial crisis, blame the banks, and make the banks and taxpayers pay. And the money goes back to the social organizations that did it in the first place.
And the democrats can use the crisis to get more votes!
bmp
DACA has never had any legal basis.
It needs to be stopped immediately.
Those people are still illegal aliens.
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