Posted on 12/29/2002 7:15:02 AM PST by ShuShu
This is my first posting as a Newbie so I'm not sure I'm doing it correctly or in the proper area. Let me know if I should have done something differently.
In the news we've been hearing that there may be new legistlation coming in DC which would change the 10 year work requirement for Social Security Benefits for Mexicans and quite possibly even Illegal Aliens from Mexico. I personally think this is outrageous and believe most Americans would agree with me. Here's something else for all Freepers to consider:
As a person who has worked in the Mortgage Industry now for 25 years, I frequently shake my head when I hear about these illegal Mexicans paying into Social Security and never getting anything back. Here is why:
In California for example there are programs for 1st time homebuyer's to help get more people into homeownership, such as CHFA (California Housing Finance Agency) and SCHFA (Southern California Housing Finance Agency). Both of these programs require you to be a first time homebuyer OR to not have owned a primary residence in the last 3 years. The way we document that to satisfy the the requirement is we obtain 3 years of Federal Tax Returns or an IRS print-out of same to prove they have not paid Mortgage Interest or Real Estate Taxes in the last 3 years. There are many similar programs in other states as well.
Most of my career was spent in Southern California and because of these programs I have reviewed countless tax returns of hispanics (many of whom I suspected to be illegal) and I can tell you that they claim so many dependents (both here and in Mexico such as brothers, sisters, parents, grandparents, etc.) that they not only get every dime they paid in Income Taxes back but also receive an Earned Income Credit to the point of essentially offsetting whatever they paid in Social Security.
For obvious reasons most of the loans are FHA loans through HUD and are insured by HUD & require minimal down payments. I make this point because on Conventional Loans (FNMA & FHLMC) Lenders are required to obtain a copy of the Resident Alien Cards for Resident Aliens to prove they are here legally on a permanent basis (non-Resident Aliens have financing available to them as well but the terms are not as favorable because of risk factors), however, FHA/HUD does NOT require a copy of this Resident Alien Card. The borrower simply signs the application under perjury penalties, which does not deter anyone.
Because of fear of lawsuits for discrimination I can also tell you that a Lender may have a borrower who speaks little or no english (and may even have to communicate through an interpreter) that claims to be either a Citizen or Resident Alien and it will not be questioned nor any proof required. Since FHA does not require any such documentation a Lender cannot cite their regulations as a basis for the request as they can on Conventional Loans.
It boggles the mind to think how many illegal aliens are homeowers in this Country thanks to these programs, all fully insured by our Government.
I was fortunate enough to escape California in 1998 but doubt if these programs have changed. I can state FHA's policies have not changed.
I am trying to get the word out to as many as possible in hopes of getting our Newspeople to cover it and bring it out for public discussion. One might even hope for legistlation to address this.
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