Okay - I am warning you...sit down before you read the rest of this...
The Phoenix Business Journal reports the following:
An increasing number of lenders are looking to cash in on the surging illegal immigrant population in Arizona and other states by offering mortgages and other financial services that skirt traditional identification requirements.
Some banks and lenders are offering illegal immigrants home loans and financing programs that do not require Social Security cards or proof of U.S. citizenship. Instead, undocumented migrants must prove they are gainfully employed and that they are paying U.S. taxes via Individual Tax Identification Numbers from the IRS.
There are no federal or state restrictions on lending to illegal immigrants, but some conservatives want that to change, contending such practices are enabling illegal immigration into the U.S.
"This is not only encouraging and assisting, but indirectly providing shelter to the illegal alien. And, just as importantly, it also is in direct violation of IRS guidelines, which clearly dictate that ITIN is not to be used as valid ID, and is for tax-filing purposes only," said Rusty Childress, a Valley car dealer and leading advocate of tougher immigration controls.
Childress said the IRS tax numbers are not secure documents, and he worries about them being used by terrorist networks.
"The problem is that there is nothing to stop a terrorist from gaining the same illegal foothold in our society or the same illegal help in getting a loan or a credit card," he said.
A number of lenders and mortgage brokers are tailoring lending programs toward documented and undocumented Hispanics -- and more banks are looking to get in on the action.
That includes New South Federal Savings Bank, which plans to expand an undocumented-oriented program dubbed Casa Mia into the Phoenix, Houston and Atlanta markets. The Alabama-based bank just rolled out the Casa Mia program in its home state.
"These are taxpayers who are giving back to our communities and deserve a fair chance to experience the American dream of home ownership," New South Chief Executive Robert Couch recently told The Birmingham Business Journal, a sister publication.
Spokesman Andy Doggrello said New South's entry into the Phoenix market is pending, but he would not disclose a timetable.
Milwaukee-based mortgage insurer MGIC Investment Corp. also has launched a program that offers mortgage insurance to lenders that offer loans to undocumented immigrants.
MGIC Vice President Mike Zimmerman said his company is working with lenders nationally and sees no additional risk in dealing with undocumented households as long as tax ID numbers are available.
"They're working families," said Zimmerman. "We can judge what their income and credit is." He said MGIC and lenders have devised ways to determine applicants' credit histories even if they do not have traditional backgrounds.
Major banks and financial institutions -- including Bank of America and US Bank -- offer checking and saving accounts to illegal immigrants from Mexico who have consular identification cards.
Other financial institutions, including Western Union, gear wire services toward Hispanics sending U.S. income back to their home countries.
There are an estimated 11 million illegal immigrants in the U.S., according to the Pew Hispanic Center. The majority of illegals living and working in the U.S. are from Mexico, and the number has risen substantially in recent years.
Arizona has the fourth-highest population of illegals in the U.S. at 500,000 and has become the primary entry point into the U.S. from Mexico.
That creates huge worries about border security, drug smuggling, human trafficking and strains on hospitals, jails and government services.
But some real estate professionals and mortgage lenders see potential customers in the illegal population.
A study by the National Association of Hispanic Real Estate Professionals concludes that undocumented Latinos could add $44 billion in new mortgages to the U.S. housing market. The study said undocumented immigrants are discouraged from home ownership because traditional loan programs require identification and legal status.
Larger banks are not yet jumping on the undocumented mortgage bandwagon, but some industry officials say that could change.
Officials at JPMorgan Chase & Co., Bank of America, Wells Fargo and US Bank said they do not currently offer ITIN mortgages.
However, a Wells Fargo spokeswoman said her bank is examining how it serves the Hispanic market, and a US Bank official said her bank accepts ITINs for credit card applications.
Some other mortgage lenders and brokers contacted for this story declined comment or did not return telephone calls.
I don't know about you...but I...AM...PISSED!!!
I worry about how my children...my grandchildren...are going to be able to afford a home...and here we have lenders...real estate agents...BANKS...pandering to ILLEGALS...
THERE IS SOMETHING WRONG WITH THIS PICTURE!!!!
DR
