Skip to comments.Housing Push for Hispanics Spawns Wave of Foreclosures
Posted on 01/04/2009 6:56:46 PM PST by Fred
California Rep. Joe Baca has long pushed legislation he said would "open the doors to the American Dream" for first-time home buyers in his largely Hispanic district. For many of them, those doors have slammed shut, quickly and painfully.
Mortgage lenders flooded Mr. Baca's San Bernardino, Calif., district with loans that often didn't require down payments, solid credit ratings or documentation of employment. Now, many of the Hispanics who became homeowners find themselves mired in the national housing mess. Nearly 9,200 families in his district have lost their homes to foreclosure.
Congressional districts with large Hispanic populations often feature heavy nonprime lending. See how different districts break down in terms of prime and nonprime home loans.
For years, immigrants to the U.S. have viewed buying a home as the ultimate benchmark of success. Between 2000 and 2007, as the Hispanic population increased, Hispanic homeownership grew even faster, increasing by 47%, to 6.1 million from 4.1 million, according to the U.S. Census Bureau. Over that same period, homeownership nationally grew by 8%. In 2005 alone, mortgages to Hispanics jumped by 29%, with expensive nonprime mortgages soaring 169%, according to the Federal Financial Institutions Examination Council.
An examination of that borrowing spree by The Wall Street Journal reveals that it wasn't simply the mortgage market at work. It was fueled by a campaign by low-income housing groups, Hispanic lawmakers, a congressional Hispanic housing initiative, mortgage lenders and brokers, who all were pushing to increase homeownership among Latinos.
The network included Mr. Baca, chairman of the Congressional Hispanic Caucus, whose district is 58% Hispanic and ranks No. 5 among all congressional districts in percentage of home loans not tailored for prime borrowers. The caucus launched a housing initiative called Hogar -- Spanish for home
(Excerpt) Read more at online.wsj.com ...
Red-lining? Liberals always look for an excuse for the lack of personal responsibility. To them, it is always someone else fault.
And for reasons unknown to Rats..
They don't need no STEENKIN' documentation...they're God's children!
Incredible that no one is in prison, let alone being investigated for this fraud.
Here's the deal. You had a community which was readily identifiable by race or ethnicity. There was a track record of low incomes and difficulty paying off loans in that community.
What the banks would do is get a map and draw a red line around the district with all the problem people.
The theory was that by doing it this way the banks wouldn't have to worry about getting more borrowers of "their kind" anymore, plus, the "red lined" area would fall into decay that much faster (due to the inability of even better off folks living there to get credit) and it could simply be forgotten until urban redevelopment (or comparable process) came along.
Insurance companies still do things that way ~ unless prohibited by law, and then they do something similar to get the same effect.
Obviously "red lining" was fairly well directed at black people, even those with good jobs who paid their bills.
Ever wonder why so many blacks back in the 1960s wanted to get out of inner city areas so badly? It was very often the case that they couldn't buy houses in their own neighborhoods because they couldn't get a mortgage.
It really wasn't because they wanted to move in next door to white people!
Simply abolishing red lining didn't solve the problem of the individual borrower who couldn't or wouldn't repay debt!
The medias use of the sad tale that these people have lost their houses is so blatantly misleading that it makes me sick. Most of these people have less than 5% equity in these houses. They never owned them; they were renting the houses and the mortgage companys money. They are out very little or nothing. They probably can stay in the house for six months after failing to make payments, which is like being paid free rent
And they said over, and over, “Compelling millions of undocumented citizens to return home is unrealistic...” Now that the banks and lawyers can earn a commission doing the work of Simon Legreed, this crisis will soon work itself out.
Library / Computer Lab Tech
Jefferson School District
59 HIGHLAND AVE
San Francisco CA
This story deals with one of the key issues about immigration that virtually no one is willing to talk about - especially politicians and others who subscribe to the open borders philosophy and to the idea of providing the millions of illegal aliens who are in our country with a Guest Worker Amnesty Program and a "Pathway to United States Citizenship."
It deals with illegal aliens using stolen Social Security numbers and false immigration documents to apply for a home loan.
The challenges confronting our nation in dealing with the millions of illegal aliens who are in our country are numerous and significant. In my opinion, the most daunting challenge, and one that is fraught with national security implications, deals with accurately identifying millions of illegal aliens who have no reliable way of proving their identities.
Our officials cannot be certain as to the true names of these millions of people. There is no way of determining their true nationality. There is no way of knowing when, where or how they entered the United States. Therefore, there is no way of truly knowing if they are wanted for crimes in other countries. (Excerpt) Read more at familysecuritymatters.org ...
VIRGINIA POVERTY LAW CENTER
Legal Services of Northern Virginia
Sandra Cardoza 246-4090
DV Paralegal/Office Manager
Illegals steal SS nos and ID's when they sneak over our border.
Thanks to Obaba, Acorn and our dumb pols, bank do not dare ASK illegals for proof of citizenship, pay stubs, etc....only a signature of one of their fake identities is needed to get a mortgage.
They then furiously flip houses back and forth among family members at higher and higher prices, using subprime mortgages.
Once they got a pot of free money, they default, abscond to Mexico w/ thousands of dollars.....while Americans get stuck with their toxic bank loans.
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