[FlyVet]

Moneylenders have no access to a verification system to check Social Security numbers before approving loans. A Department of Homeland Security investigator informs me that an ongoing federal probe of FHA/HUD-backed loans found that "a staggering number were approved to persons with false Social Security numbers." The Denver metro area alone accounted for 20,000 to 40,000 of the FHA-approved loans for suspected illegal aliens. "Even if a small percentage of the loans were foreclosed, HUD could be bankrupted," the homeland security official said.

Really? When I bought my first home last year, my SSN was required and they showed me a printout of my credit rating. Credit check and itemized assets were required. What do they do, pretend to check? That would have saved me a lot of trouble if I'd known that. Is the lovely Ms. Malkin telling me such checks aren't required for illegals?

Something really stinks here, and I'm not sure if it's this article, or the system.

[PatrioticAmerican]

"Is the lovely Ms. Malkin telling me such checks aren't required for illegals?"

This story is true. I know for a fact that an illegal used a TIN to secure her house. She did have credit on that TIN that she had built up over several years.

[4Freedom]

ShuShu, I hope you don't mind the 'Ping'. This is your area of expertise. FlyVet wants to know if it's Michelle's article that "stinks", or the system that "stinks".

Maybe you could tell FlyVet and others about some of your observations and experiences over the years.

He doesn't believe this could be happening. I'll bet he's not alone in his disbelief. ;^)

[ShuShu]

The Moneylenders she's referring to are either ignorant or lying, there are many systems out there to check these things. My company uses a system that's basically a shotgun method. It checks the SSN's, looks up phone numbers to trace back person/company assigned the number, checks employers, etc. the results are scored and flagged for us to follow up with more thorough review or documentation to resolve the discrepancy. The one we use costs appox. $7.00 per submission so it's not at all costly.

[Chancellor Palpatine]

It would be the fact that this is a Michelle Malkin article that raises my eyebrows. She is less than thorough.

[ShuShu]

There is also another website that is free if you check no more than 10 numbers a day. You input the SSN with your email address, you receive a response of whether or not the number is active along with I believe the State and approx. year is was issued. Some Lender don't WANT to KNOW and then use lame excuses like this.

[Tauzero]

"What do they do, pretend to check?"

If it's a government guaranteed loan, or they're just going to sell it someone else, why should they diligently check?

It's about transaction fees and transaction volume.

On the other hand, if you've got really good credit and assets, maybe they'll decide to keep the loan for themselves.

See how it works? The government (taxpayers) and MBS buyers will be left holding most of the crap.