New South Federal Savings Bank Launches Loan Product (Casa Mia)
05/10/2005
BIRMINGHAM, AL – May 9, 2005 – New South Federal Savings Bank is launching a new loan product, Casa Mia, to expand homeownership opportunities for taxpaying immigrants.
Casa Mia is designed to help taxpaying immigrants without traditional forms of documentation realize their dreams of homeownership by accepting Individual Tax Identification Numbers (ITINs) as documentation in lieu of Social Security numbers (SSNs).
Since 1996, the Internal Revenue Service (IRS) has been issuing ITINs in order to receive taxes from immigrants. More recently, mortgage providers in the Midwest began using ITIN lending to help taxpaying immigrants become homeowners. However, a recent report by the Census Bureau shows that 29.2% of all foreign-born residents live in the South. Yet there are few, if any, mortgage lenders with home loans to serve this market.
“As a leader in residential lending, we understand the importance of homeownership to both individuals and communities,” Robert M. Couch, CEO and President of New South explains, “These are taxpayers who are giving back to our communities and deserve a fair chance to experience the American dream of homeownership.”
The Consul General of Mexico in Atlanta is working closely with New South to ensure the accurate identification of Mexican immigrants using the latest in technology to combat false Identification. Consul General, Remedios Gomez Arnau, attended New South’s launch of Casa Mia. “We are excited to see a loan product specifically aimed at helping Mexican immigrants. Casa Mia is helping break down the barriers to homeownership that this community has faced in the past. By becoming homeowners, these individuals will be able to become further involved in the local community.”
Predatory lending is an example of one of the many barriers immigrants have faced. Since traditional banking institutions did not have a product to fit their needs, some immigrants who attempted to become homeowners were taken advantage of by unscrupulous lenders. Johnny Creel, President of Seguro Realty and Insurance, has helped Birmingham immigrants find homes and has seen this first hand, “These are legitimate workers paying taxes, social security and Medicare who want to become mainstream. Many of them have taken out mortgages with rates has high as 11% because, at the time, there simply was no other outlet. By offering Casa Mia, New South is providing a safe, effective way to help immigrants become homeowners.”
In order to qualify for Casa Mia, borrowers have to prove at least two years residency and two years steady employment. They can use the ITINs and government issued photo ID in place of the SSNs, but they must have excellent credit. The program also requires each applicant to undergo homeownership counseling to ensure the borrower completely understands the logistics and responsibilities of owning their own home. New South plans to offer counseling in both Spanish and English through the Birmingham Center for Homeownership.
According to Cenus Bureau data, over 33.5 million foreign-born residents live in the United States. Couch recognizes this to be an ever-growing segment of the population, “It is important that we embrace this emerging market."
New South is initially launching Casa Mia in Birmingham and plans to expand the product to the Atlanta/Duluth, Phoenix and Houston markets in the near future.
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http://www.newsouthfederal.com/customer_service/
What a crock.
Thanks for the New World Order Bank (oops, New South Federal) customer site. I think it's important that they have feedback from legal American's as to their policies and procedures. I doubt they care, all they care about is money, but still important that they get feedback.
Naturally I'd love to see a company like this tank financially but we seem to have enough illegals to keep it afloat.