Home loans for illegal aliens?! - Michelle Malkin

TownHall.com ^ | 8/29/03 | Michelle Malkin

[kattracks]

The American dream of home ownership, complete with the white picket fence, is alive and well for those who break our laws and break down our fences to get in.

Last week, The Washington Post published a rosy front-page tale headlined, "Illegal Immigrants Buy Into Homeowning Dream." The article detailed how illegal aliens in the Washington, D.C., area are successfully hooking up with cunning mortgage brokers and complicit lenders to secure home loans. Despite federal laws making it illegal to violate the borders, overstay visas, and recruit, harbor and encourage illegal aliens, the Post notes that the illegal alien home loan schemes are "legal."

Here we are, nearly two years after the September 11 terrorist attacks underscored the need for consistent immigration law enforcement, and the lesson continues to be ignored in the nation's capital.

The Post's heart-warming story began:

"Gerardo Cabrera fell in love with the house immediately. There was the bay window in the living room, the fireplace in the den, and -- most enchanting to a man raised amid the concrete of Mexico City -- the woods in the back yard. And so the auto mechanic and his wife, a secretary, decided to pay $200,000 for their own piece of suburban Gaithersburg, a classic tale of immigrants achieving the American dream. Except for one detail: At the time, they were in the United States illegally."

While law-abiding homebuyers must supply airtight proof of identity, legal residence and a Social Security number to lenders, illegal alien purchasers such as Cabrera (a visa overstayer who recently received a green card) need only supply a "taxpayer identification number" (TIN) issued by the Internal Revenue Service. No criminal background check is required before applying for a TIN, which many banks now accept from illegal alien customers as a primary form of identification.

Cabrera's broker, Alma Preciado of Metropolitan Financial Services in Silver Spring, told the Post that about 10 percent of her mainly Latino clientele qualify for home loans using a TIN instead of a Social Security number.

That's just the tip of the illegal alien homeowners' iceberg. The Post failed to note that Federal Housing Administration-approved loans through the U.S. Department of Housing and Urban Development do not require lenders to obtain proof of citizenship or legal permanent residence. These FHA/HUD programs, primarily targeting minorities and first-time homebuyers, are federally insured and require minimal down payments.

A 25-year veteran of the mortgage industry in California confided to me recently: "It boggles the mind to think how many illegal aliens are homeowners in this country thanks to these programs, all fully insured by our government. Because of fear of lawsuits for discrimination I can also tell you that a lender may have a borrower who speaks little or no English who claims to be either a citizen or resident alien and it will not be questioned nor any proof required. Since FHA does not require any such documentation, a lender cannot cite their regulations as a basis for the request as they can on conventional loans."

Another easy avenue to home ownership is through the use of bogus Social Security cards. Moneylenders have no access to a verification system to check Social Security numbers before approving loans. A Department of Homeland Security investigator informs me that an ongoing federal probe of FHA/HUD-backed loans found that "a staggering number were approved to persons with false Social Security numbers." The Denver metro area alone accounted for 20,000 to 40,000 of the FHA-approved loans for suspected illegal aliens. "Even if a small percentage of the loans were foreclosed, HUD could be bankrupted," the homeland security official said.

A spokeswoman for the U.S. General Accounting Office told me this week that the agency's office of special investigations plans to report on the results of the probe later this fall. But "considering the size of Los Angeles, New York, Chicago, Houston, and other large cities throughout the United States known to be inundated with illegal aliens," says my source, "I don't think the federal government is willing to expose this problem for financial reasons as well as for fear of political repercussions."

America: Still the world's home sweet illegal alien home.

©2003 Creators Syndicate, Inc.

Contact Michelle Malkin | Read Malkin's biography

[EdReform]

BTTT

read tomorrow...

[nutmeg]

read later bump

[gubamyster]

ping

[hedgetrimmer]

Bump

[pubmom]

Disgraceful and outrageous.

[usadave]

No criminal background check is required before applying for a TIN, which many banks now accept from illegal alien customers as a primary form of identification.

If banks are going to accept TIN's from illegal aliens as a primary form of identification, then I would think that banks would be required to accept TIN's from American citizens too, or risk being sued for discrimination.

[WRhine]

A 25-year veteran of the mortgage industry in California confided to me recently: "It boggles the mind to think how many illegal aliens are homeowners in this country thanks to these programs, all fully insured by our government. Because of fear of lawsuits for discrimination I can also tell you that a lender may have a borrower who speaks little or no English who claims to be either a citizen or resident alien and it will not be questioned nor any proof required. Since FHA does not require any such documentation, a lender cannot cite their regulations as a basis for the request as they can on conventional loans."

Ever get the feeling that Our Government NO LONGER Represents the American Citizen?

[Mark17]

Ever get the feeling that Our Government NO LONGER Represents the American Citizen?

In a word, yes. Don't look for the situation to improve in our lifetime, unfortunately. This garbage just ain't going away.

[spodefly]

Law abiding citizens are suckers. Citizenship is meaningless. That is the message in all of this.

[FlyVet]

Moneylenders have no access to a verification system to check Social Security numbers before approving loans. A Department of Homeland Security investigator informs me that an ongoing federal probe of FHA/HUD-backed loans found that "a staggering number were approved to persons with false Social Security numbers." The Denver metro area alone accounted for 20,000 to 40,000 of the FHA-approved loans for suspected illegal aliens. "Even if a small percentage of the loans were foreclosed, HUD could be bankrupted," the homeland security official said.

Really? When I bought my first home last year, my SSN was required and they showed me a printout of my credit rating. Credit check and itemized assets were required. What do they do, pretend to check? That would have saved me a lot of trouble if I'd known that. Is the lovely Ms. Malkin telling me such checks aren't required for illegals?

Something really stinks here, and I'm not sure if it's this article, or the system.

[WRhine]

The Denver metro area alone accounted for 20,000 to 40,000 of the FHA-approved loans for suspected illegal aliens. "Even if a small percentage of the loans were foreclosed, HUD could be bankrupted," the homeland security official said.

This is absolutely incredible. Is this a mea culpa? HUD and the FEDS obviously knew that staggering numbers of Illegal Aliens were getting GOVERNMENT BACKED loans to buy homes because they REMOVED any Lawful Standard that would prohibit such aliens to apply for the loans. NOW they seem worried about what could happen if HEAVEN FORBID the Laws of this Land were actually Enforced on Illegal Aliens. The message seems to be “we can't do anything about it because HUD would go broke”.

This has all the components of High Treason. What is the end game--Amnesty for Illegal Aliens? Any high up Bush Cabinet official going to lose their job over this? Unfreaking believable.

"I don't think the federal government is willing to expose this problem for financial reasons as well as for fear of political repercussions."

Too Late, It's already out in the open. Let the heads roll.

[doug from upland]

It is a federal crime to put false info on a loan application in which the federal government is involved. If you know an illegal alien who did this and a mortgage broker who helped, it is time to do something about it.

[jokar]

BTTT

[Tailgunner Joe]

Globalism.

[4Freedom]

"Let the heads roll."

You're kidding, right?

Bush and his whole administration are complicit!

Do you believe Bush considers malfeasance like this, in respect to illegal aliens, anything but a job well done?

Bush nominated a Cuban banker to replace an open borders advocating, pro-illegal immigration, Libertarian, puke like Ziglar, because he wanted to stop illegal immigration?

It'll be promotions, raises, bonuses and extra perks all around!

They won't be yelling "Let the heads roll." in the White House.

Karl Rove tells Bush these illegals are future RINOs, so it must be worth risking the financial futures of tax paying American citizens to buy them homes.

Bush and friends will be yelling:

"Let the good times roll!"

[PatrioticAmerican]

"Law abiding citizens are suckers. Citizenship is meaningless."

Yep. Get a matric card and TIN and use a second identity to avoid tax hassles.

[PatrioticAmerican]

"Is the lovely Ms. Malkin telling me such checks aren't required for illegals?"

This story is true. I know for a fact that an illegal used a TIN to secure her house. She did have credit on that TIN that she had built up over several years.

[4Freedom]

ShuShu, I hope you don't mind the 'Ping'. This is your area of expertise. FlyVet wants to know if it's Michelle's article that "stinks", or the system that "stinks".

Maybe you could tell FlyVet and others about some of your observations and experiences over the years.

He doesn't believe this could be happening. I'll bet he's not alone in his disbelief. ;^)

[MissAmericanPie]

HUD has slipped three illegal families onto my block. One of them is a foreman for a landscaping company. They in turn are using their home to slip more illegals into the country.

[tracer]

Why bother with loans?? We don' need no steenkeeng loans.....

[skeeter]

Let the heads roll.

In our dreams.

I flip flop back and forth on this issue between hopeful optimism and total despair.

After reading this I'm thinking we'll never be rid of the illegal parasites - they're too deeply embedded in the system. Too many with too much at stake in the system the way it is.

[Publius6961]

Michelle is dead on.

I stopped at a mexican restaurant last night and read a Spanish language newspaper, and there was the long article saying just that.
What caught my eye is there was no attempt to even acknowledge that we are talking mostly illegals here...

[Paulie]

The corrosive effects of political correctness to this nation continues unabated. I'm beginning to believe we're past the point of no return. It's fight or flight time.

[WRhine]

"Let the heads roll."

You're kidding, right?

Sorry, I had a brief bout with naivete there. Slap, Slap. There I'm better!

Bush and his whole administration are complicit!

You Bet they are.

Do you believe Bush considers malfeasance like this, in respect to illegal aliens, anything but a job well done?

From what I have seen with this administration--YES.

Karl Rove tells Bush these illegals are future RINOs, so it must be worth risking the financial futures of tax paying American citizens to buy them homes.

Incredible Isn't It?

Bush & Co. will apparently stop at nothing in aiding and abetting Illegal Aliens to do end runs around OUR LAWS even if it involves putting a Massive Financial Liability on the Dime of American Taxpayers.

How far do you think an American Citizen would get into a HUD loan application without disclosing a SS#, PROOF of residency, net worth, job history etc. that they regularly waive for Illegal Aliens?

This is YET another Monumental Episode of Government High Treason in a long line of others against the American People. How can it be anything else?

To get representation from this Government today you have to be a 3rd World Immigrant--an "Illegal" Status earns even more representation.

[WRhine]

I flip flop back and forth on this issue between hopeful optimism and total despair.

I know what you mean. What our government is doing is creating the conditions for a blanket Amnesty of all Illegal Aliens.

The American People have been totally sold down the river by this Administration and Government.

[janetgreen]

Again and again the illegal invaders easily get breaks that our own kids have to jump through hoops of fire for. My son had to provide a complete credit history and his life history just to rent a house recently.

If the illegal borrower fails on his loan (deportation?), will that go on his credit history? Fat chance - they rarely get deported anyway.

I've seen homes where several families live together, read about one home where there were twenty two people living in a 3 bedroom house that they had purchased. They had a total of 8 cars, most parked on the place that used to be the lawn. The neighbors no one wants. How do they get these loans?

[FlyVet]

He doesn't believe this could be happening. I'll bet he's not alone in his disbelief. ;^)

Actually, I have no problem believing it. Sometimes I get so mad when I read stuff like that, my little pea-brain goes into denial mode for awhile. But I'm over that now. I'm a fan of MM's work. Since she's not a white male, she must really get under the skin of the commie lefty scum. Heh heh.

[ShuShu]

TIN's are for people who do not qualify for a Social Security number so they can still pay thier taxes owed in the US. If a person does at some point meet the requirements for obtaining a Social Security number they must apply for one immediately.

I would tend to believe this would be mainly designed for a consultant, etc. from a foreign country who comes here to perform services on a contracted basis. They owe taxes here on the income so they need some type of number in order to settle up with the IRS before returning to their country.

[ShuShu]

The Moneylenders she's referring to are either ignorant or lying, there are many systems out there to check these things. My company uses a system that's basically a shotgun method. It checks the SSN's, looks up phone numbers to trace back person/company assigned the number, checks employers, etc. the results are scored and flagged for us to follow up with more thorough review or documentation to resolve the discrepancy. The one we use costs appox. $7.00 per submission so it's not at all costly.

[moehoward]

bump, Michelle!

[Chancellor Palpatine]

It would be the fact that this is a Michelle Malkin article that raises my eyebrows. She is less than thorough.

[ShuShu]

There is also another website that is free if you check no more than 10 numbers a day. You input the SSN with your email address, you receive a response of whether or not the number is active along with I believe the State and approx. year is was issued. Some Lender don't WANT to KNOW and then use lame excuses like this.

[Libertina]

I don't know what to say about this anymore...

It's obviously a serious problem and it is just as obviously ignored... by the right, and simply written about by the left.

[Libertina]

Ever get the feeling that it is YOU who are valueless to your government and not the aliens? :(

[PurVirgo]

"Since she's not a white male, she must really get under the skin of the commie lefty scum"

ah, but there is a bit of flawed logic in your statement.

Asians are a threat to the "other" minorities, b/c they don't have the handout mentality (mostly, anyways)

You think being white makes it hard on you to get into law/med school? Try being asian and live in Cali or NY

[FlyVet]

Oh, you two. I throw a Mea Culpa out there, then you show up to bust my bubble. Now I don't know what to believe. Suffice to say, it really pisses me off if any illegal is getting a home loan in this country. If it's true, I can't believe how low-life and cowardly our politicos are. Well, yeah, I can believe that. One of these days, the solution is going to be ugly.

[Cultural Jihad]

One of these days, the solution is going to be ugly.

Ho-hum.

[ShuShu]

I'm in the mortgage industry and back in the mid-80's FHA came out and required copies of the social security cards and driver's license on most applicants on the loan request. When I attended a regional underwriter's meeting where they presented this to us they explained that when they audited recent forclosures and found that they had made a number of loans to dead people and children. We were then REQUIRED to have a face-to-face interview with the applicants and obtain a copy of the drivers license or some other form of ID with a photo on it.

That requirement was modified in the early '90's - we no longer needed the face-to-face interview nor photo ID, and we were only required to obtain "evidence" of a social security number.

While I strongly disagree with Bush on the border and illegal alien issue, this is yet another problem he inherited.

[FlyVet]

Nah, I think you read too much into my comment. Let's focus. She is "Other than white male". White males are the Scum of the Earth, or, the Scum of the Left. MM is Not a White Male, Who Talks Like a White Male. Therefore, a thorn in the side of the Left. I wasn't talking about Other Minorities.

[FlyVet]

Ho-hum.

And, your ho-hum means?

[PurVirgo]

*sheepish grin*

sorry bout that... guess I was projecting a little bit. hehehe...I'm half white scum and half threat (asian).

But you're absolutely right - I love Malkin's articles!!

[Cultural Jihad]

Ho-hum, more drivel.

[FlyVet]

Ho-hum, more drivel.

Oh, go to sleep if you're tired. You usually offer up more logic than that. See you tomorrow. Geez.

[Cultural Jihad]

If someone wants to loan money to another, it's none of my business.

[ShuShu]

"If it's true, I can't believe how low-life and cowardly our politicos are. Well, yeah, I can believe that. One of these days, the solution is going to be ugly."

It is true FlyVet, I'm in the mortgage industry and I know it is. And if you really want to steam, many of these illegals are using the "first time homebuyer" programs that are out there with below market rates and others where their down payment is provided for them. Since some of these programs require they haven't owned a primary residence we see their tax returns covering the previous 3 yrs. and a great many of these claim so many dependents they not only get a complete refund of the taxes they paid they also qualify for the Earned Income Tax Credit (EITC).

And, FlyVet - that is the absolute truth!

[FlyVet]

If someone wants to loan money to another, it's none of my business.

You consider it ok if loaned to someone who has no business getting a loan? Harrrumph. I don't be believin' you.

[FlyVet]

And, FlyVet - that is the absolute truth!

Well then, all I can say is, ^%$#@*+_)! Damn it. Thanks a lot, Mr. (or Ms., as the case may be) ShuShu, for giving me an over-pressure this evening! I get more and more pessimistic as I grow older. I might be better off if I join the ranks of the empty-heads. Then I won't have to worry about anything. Nah, scratch that. I enjoy being pissed off. <);=)

[4Freedom]

"If someone wants to loan money to another; it's none of my business."

CJ, these criminal mortgage lenders are lending money to unqualified, criminal, illegal aliens and illegally backing these loans with U.S. Taxpayer's dollars under the FHA/VA and HUD programs.

Their criminal activity has put us in jeopardy of yet another costly U.S. Taxpayer bail-out of another thoroughly defrauded federal program.

IMO, this is why this illegal money lending activity is all of our business, CJ. It negatively affects all of us, now and future generations to come.

[AndyJackson]

The risk to the taxpayer is much more complex than that. Like almost any home-loan, the principal, and in many places the only protection against default is repossession and resale, which in a well-structured loan will result in no loss to the taxpayer. If FHA loan guarantees are being provided on loans structered so that there is inadquate protection for the lender or the taxpayer then that is a more serious matter that needs investigating.