Skip to comments.Border Security and Housing Policy: Some Questions (How Ya Gonna Keep ‘Em Down on the Farm?)
Posted on 06/23/2013 6:40:08 PM PDT by whitedog57
Each of the Washington DC area think tanks have an opinion piece on the border security legislation (aka, immigration reform). Mostly, they are positive on immigration reform.
American Action Forum Center for American Progress
Except for The Heritage Foundation. Read each one for a broad discussion of benefits and costs.
But my question for Congress and the Administration is a simple one. How is immigration reform going to effect the future of the mortgage market and housing policy?
Immigration reform intends to create VOTERS over the course of several years. It is really a VOTER REGISTRATION Bill, not a border security bill. Besides, language is included to allow the Homeland Security Secretary (such as my former governor Napolitano) to nix any border security if he or she doesnt believe it is wise. So, there IS NO REALBORDER SECURITY IN THE BORDER SECURITY BILL.
So, what about those new voters? 11 million to 40 million of them (nobody really knows). Plus, relatives, etc. Since about 80-90% of the new voters will vote Democrat, it is important to view the future of the mortgage finance system and housing policy in the context of a permanent Democrat majority.
Democrats have traditionally supported heavy intrusion in the housing market and housing finance system, going back to Franklin D Roosevelt and Depression era policies. HUD, the FHA, Fannie Mae, later Freddie Mac are examples of government or government-sponsored enterprises (not to mention the Federal Home Loan Banks). Then we have The Community Reinvestment Act which was passed by the 95th United States Congress and signed into law by President Jimmy Carter on October 12, 1977. Finally, we have Clintons National Homeownership Strategy: Partners in the American Dream. Throw in the numerous housing refinancing initiatives of the Obama Administration (HAMP, HARP, etc.). Each of these organizations and government actions were intended to expand housing and lower credit standards and down payment requirements.
So if Democrats have a permanent majority after immigration reform kicks in, I would expect more liberalization of lending standards (again) and expansion of government programs. NY Senator Chuck Schumer really wants the DEMOCRAT VOTER REGISTRATION LEGISLATION to pass. Otherwise, he predicts riots in the streets.
I havent seen any consideration of the impact of housing reform from the think tanks.
Oh and one more thing. We have almost 12 million unemployed in the USA. Is bringing over millions of poorly educated, low wage workers a good idea?
And a final observation. When people like Martin Scorsese says the US is a nation of immigrants (see Gangs of New York), they fail to recognize that low wage, poorly educated immigrants are likely attracted to food stamps, free housing, healthcare, etc. So, how ya gonna keep em down below the border when the US pays them to vote?
How Ya Gonna Keep Em Down on the Farm?
If they are all going to come up here, I may just move to somewhere like Cancun.