This has nothing to do with illegals. It is Greenspans M.O. to bail out investors with liquidity - Asians, Stock Investors, Real Estate. The loose lending practices let anyone with a pulse get a loan. It also enabled people to buy in way over their heads in the overheated markets. It also was the ATM for some. Those weren't illegals. Now those issues are coming home to roost. The question now is how far will the problems go? Apparently they are beginning to creep up into low a categories.
Who do you think got those mortgages? There is already numerous studies that show a high percentage of subprimes, going back to 2003 and escalating in the housing bubble of 2005-06, went to hispanics and african-american borrowers.
The boys in the banking business and the WSJ and the White House don't want this out until the amnesty votes. Bottom line, most of those subprimes did not go to boomers cashing out to get their Volvos.
All those subprime mortgages have an address. The records (few that they are) show a footprint that coincides with the heaviest concentrations of hispanics and african-americans. Many have a taxpayer number rather than an SS number (=illegals). These studies were not concerned with subprimes so much as they were focused on predatory lending taking advantage of minorities. Discrimination against blacks has been around a long time, but tapping into the hispanic market to win their business is new and has been an all out effort, now expanding to credit cards.
This has a lot to do with illegals..I'm in the real estate/ mortgage business in southern california and it all started with the investigation of fraudulant loans. There are brokers who are having to by back loans from lenders because guess what, they used false information such as SS#'s and fake CPA letters to verify employment. I know of one franchise office in Santa Ana where the top producer makes $500k a year and her business is all illegals and fraudulant deals, overstating income and bad SS#'s. Ha..One broker got shut down because the same SS# was used 6 times on different deals...when those people are the main buyers in the market do the math. Tell me how my neighbors gardner bought a $450k home with no green card and SS? Oh and by the way, that top producer said if the sh*t hit the fan, she'd just go back to Mexico..where she's been sending her money for the last several years.