I read an article that said 60% of HUD loans in foreclosure belong to illegal immigrants.The government encouraged banks to give mortgages to illegals and now the American citizen will pay for it. This could be the beginning of the worst financial crisis in a long time and the government played a major part in creating it.
I have no idea if that figure is accurate, but even if it is, it has little to do with the current problem, which involves privately originated subprime and “Alt-A” loans, not HUD loans. One of the problems is that people who were eligible for low-interest HUD loans and weren’t aware of that, got talked into high fee, high interest, and adjustable rate loans by private mortgage originators. A significant number of people who are being forced to default on subprime loans would be doing just fine if they’d gotten their mortgage via the HUD program instead.