Wednesday, February 06, 2008

The mortgage crisis...


The recent housing crisis has got me wondering about events in 2005 when banks decided that it was good practice to start giving mortgages to illegal aliens. E.g. Bank of America, etc.

The bank industry stated that it was a "win-win situation" and saw it as an "untapped" source for a growing revenue stream.
Not everybody agrees...
"It's institutionalizing illegality," said Marti Dinerstein, president of Immigration Matters, a New York-based think tank told CNN. "Now there's no distinction being made between the people that follow all the rules and those who break our laws by entering the country or overstaying their visas."

Dinerstein was also worry that this could lead to a form of "predatory lending."

Advocates on the other hand said the benefits outweigh the potential downside.
"This is a huge untapped market with people that live and work in this country and are capable of buying homes to realize the American dream," said Chan Peterson, executive vice president and head of community banking at Banco Popular, one of the earliest banks to enter this field.

Peterson added that there is a common misconception that illegal immigrants will be more likely to default on their loans than a documented resident.
except for the little issue of risking deportation.

"Illegal immigrants are here to stay and banks are recognizing that." Said Alenka Grealish, manager of the banking group at Celent, an independent research and consulting firm.

Grealish added that banks are careful to follow guidelines that the government has already have in place.
The risk for the bank is lowered because secondary markets such as Fannie Mae and Freddie Mac have agreed to buy mortgages from banks that lend to illegal immigrants.

"Banks are counting on the fact that we do a lousy job with interior enforcement," said Celent's Grealish. "Once you're in the country and you haven't done anything wrong, the chances of being deported are very slim. Banks are banking on that."

first of all, I think that it would be a higher risk for a bank if the person that they loan money to risk deportation at any time.

For example, once you've been deported, it is a felony to return to this country.

So looking at the housing issue at the moment and with all the loans that are being defaulted, I just am curious if this has anything to do with it.


Blogger Bobkatt said...

Yep, it's nice to know that all these experts don't seem to have the morals or the will power to resist coming up with these schemes that to us novices know reek of scam.
Also, how can you base your economy so heavily on the new housing market without a constant new supply of buyers. No wonder we can't seem to stem the tide of illegal immigration.
Looks like this is just another bail out we get to fund for the moneychangers.

2:20 AM  
Anonymous Anonymous said...

People seem to forget that everything OUR government pays for, in this country and world wide, is coming out of OUR pockets. If you look at some of the pet projects that WE are currently funding, it is obvious that OUR Government is not looking out for OUR needs. Why do we spend millions of dollars studying insects in France? - Because they may fly over here and hurt our crops. What a CROCK!

11:55 AM  
Blogger ninest123 Ninest said...

ninest123 09.29
louis vuitton outlet, cheap jordans, tory burch outlet, chanel handbags, prada outlet, michael kors outlet, michael kors outlet online, cheap oakley sunglasses, tiffany jewelry, nike outlet, ralph lauren outlet, uggs on sale, nike air max, christian louboutin, louboutin uk, nike free, uggs outlet, kate spade, oakley sunglasses, ray ban sunglasses, ralph lauren polo, oakley sunglasses, michael kors, replica watches, longchamp outlet, gucci handbags, prada handbags, replica watches, burberry factory outlet, uggs on sale, longchamp bags, uggs on sale, christian louboutin, ray ban sunglasses, louis vuitton, oakley sunglasses, louboutin shoes, ray ban sunglasses, louis vuitton outlet online, michael kors outlet store, nike air max, uggs outlet, michael kors outlet online, louis vuitton outlet, longchamp outlet, tiffany jewelry, burberry outlet, oakley sunglasses

12:31 AM  
Blogger ninest123 Ninest said...

sac guess pas cher, michael kors outlet online, coach purses, coach outlet, true religion outlet, north face pas cher, north face uk, hermes pas cher, michael kors, louboutin pas cher, jordan pas cher, nike free, vans pas cher, kate spade outlet, longchamp pas cher, nike air max uk, nike roshe uk, michael kors uk, nike air max, nike tn pas cher, nike roshe run pas cher, burberry pas cher, ralph lauren pas cher, true religion outlet, timberland pas cher, michael kors, lululemon outlet, new balance, coach outlet store online, longchamp soldes, nike free pas cher, vanessa bruno pas cher, nike air max uk, nike air force, hogan sito ufficiale, lunette oakley pas cher, polo ralph lauren uk, polo lacoste pas cher, true religion outlet, abercrombie and fitch, mulberry uk, nike blazer pas cher, abercrombie and fitch UK, nike air max pas cher, true religion jeans, hollister uk, converse, coach outlet, lunette ray ban pas cher

12:34 AM  
Blogger ninest123 Ninest said...

new balance shoes, insanity workout, softball bats, north face outlet, vans scarpe, abercrombie, nike air huarache, valentino shoes, hermes handbags, beats by dre, iphone cases, mont blanc, p90x workout, north face outlet, nike air max, hollister, mcm handbags, converse shoes outlet, polo ralph lauren, celine handbags, nike trainers uk, ghd hair, reebok outlet, gucci, salvatore ferragamo, nike roshe run, nfl jerseys, babyliss pro, ray ban, soccer shoes, jimmy choo outlet, converse, instyler ionic styler, lululemon outlet, bottega veneta, wedding dresses, mac cosmetics, vans outlet, nike air max, timberland boots, oakley, chi flat iron, asics running shoes, soccer jerseys, hollister clothing, herve leger, giuseppe zanotti, longchamp uk, abercrombie and fitch, louboutin, michael kors handbags

12:35 AM  
Blogger ninest123 Ninest said...

lancel, moncler outlet, louis vuitton, moncler, montre pas cher, moncler, louis vuitton, sac louis vuitton, toms shoes, moncler, canada goose jackets, thomas sabo uk, louis vuitton uk, michael kors handbags, ugg,ugg australia,ugg italia, bottes ugg pas cher, michael kors outlet, barbour, moncler, ugg uk, ugg pas cher, sac louis vuitton, marc jacobs, pandora jewelry, wedding dresses uk, supra shoes, canada goose uk, doke & gabbana, canada goose outlet, canada goose pas cher, swarovski uk, barbour jackets uk, swarovski jewelry, moncler pas cher, juicy couture outlet, coach outlet, moncler uk, replica watches, michael kors outlet online, ugg,uggs,uggs canada, pandora uk, links of london uk, moncler jackets, canada goose outlet, hollister, pandora charms, juicy couture outlet, canada goose, canada goose, pandora jewelry, canada goose jackets
ninest123 09.29

12:38 AM  
Blogger Minko Chen said...

abercrombie and fitch
canada goose jackets
air jordan 4
swarovski jewelry
nike free
tiffany outlet
mont blanc pens
chicago blackhawks
links of london jewellery
true religion outlet
michael kors uk
tiffany outlet
beats by dre
adidas wings shoes
nike trainers
christian louboutin outlet
michael kors outlet online
celine outlet online
ugg boots clearance,ugg australia,uggs on sale,ugg slippers,uggs boots,uggs outlet,ugg boots,ugg,uggs
tiffany and co

7:36 PM  
Blogger Minko Chen said...

babyliss flat iron
ugg boots on sale
discount oakley sunglasses
oakley,occhiali oakley,oakley italia,oakley occhiali,oakley sunglasses
supra shoes
cheap ugg boots
designer handbags,handbags outlet,cheap handbags,purses and handbags,wholesale handbags,designer bags,bags outlet,handbags wholesale,cheap purses,discount handbags,handbags sale,wholesale purses,handbags and purses,designer purses
louis vuitton bags
ralph lauren outlet
hermes outlet
valentino outlet
ray ban outlet
pandora outlet
ferragamo shoes
tiffany and co
oakley canada
woolrich outlet store
canada goose outlet
coach outlet store
cheap wedding dresses

7:36 PM  

Post a Comment

Links to this post:

Create a Link

<< Home