Forecasting more weakness in the housing market, many US lenders are looking at illegal aliens as homebuyers.
"For now there is no legal barrier to buyers like Martinez purchasing a U.S. home. The National Association of Hispanic Real Estate Professionals, in a report three years ago, estimated that undocumented Latino immigrants could represent potential for $44 billion in new mortgage loans. Association head Frances Martinez Myers said that can only have grown since "
Big banks are hesitant to target the estimated 12 million illegal immigrants while Congress is considering new laws to tighten border security and more aggressive deportation. "The worst-case scenario would be if they enforce the employment rules because the borrowers might very well lose their jobs," said Mark Doyle, president of second Federal savings bank Chicago, where one third of their mortgages are to illegal aliens.
"Loans to undocumented residents do not carry an undue risk of default, said Myers, director of the Hispanic real estate group. ""certainly, if there was significant deportation, that would be a concern," said Chan Peterson, head of community banking at the lender. "We have to keep working."
The ideal situation for a borrower according to Jason Madiedo, vice president of Star Funding is a full-time employee who has filed federal tax returns for three years and has either a Social Security number or a taxpayer identification number (ITIN).
" "The immigration rules are complex and evolving," Fannieunder this type of strategy (greed) from the banks, I foresee a higher rate of foreclosures in the future. I must agree with Lars on this one about not feeling sorry for the banks for taking this risk, however, as we all know large corporations do not lose money, they just pass on their losses to their customers.
Mae spokeswoman Cristina Miranda said in explaining why the mortgage finance company does not now handle mortgages to the undocumented residents. "
2 comments:
Habitat for Humanity has been building homes for illegals for years. Of course, that means legal citizens who need the help can't get it. I thought the Governement was supposed to penalize companies that help illegals and yet every big business is finding a way to get around it. Maybe we can get a cheap house when they enter foreclosure, but it still doesn't make it right.
"The worst-case scenario would be if they enforce the employment rules because the borrowers might very well lose their jobs," said Mark Doyle, president of second Federal savings bank Chicago, where one third of their mortgages are to illegal aliens.
Yeah it would be a shame if this piece of crap bank went into receivership because the government enforce the rules already on the books. If one third of their mortgages are to illegals at least we know where they live.
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