Home loans to illegals have a default rate of 0.5%, so how did the immigration crackdown add to our crisis?

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Financial institutions report that home loans to illegal immigrants have a default rate of 0.5%, up until 2007 when the immigration crackdown went into full force. So how did this crackdown on people that actually pay their loans add to our mortgage crisis? We are in very bad shape, so why would people want to deport them over the ones that are committing crime?

http://rismedia.com/2007-10-12/home-loans-to-illegal-immigrants-sturdy-but-show-some-cracks/
Home Loans to Illegal Immigrants Sturdy

RISMEDIA, Oct. 15, 2007-Despite the downturn of the mortgage market, a type of home loan has remained surprisingly sturdy: one extended to illegal immigrants.

For loans more than 90 days in arrears, ITIN mortgages have a delinquency rate of about 0.5%, according to independent estimates. That compares with 1% for prime mortgages and 9.3% for subprime mortgages extended to those with spotty credit histories.

http://www.oliverwillis.com/2007/10/11/illegal-immigrants-turn-out-to-be-good-mortgage-risks/
Illegal Immigrants Turn Out To Be Good Mortgage Risks

Amid the housing loan debacle, one segment of the mortgage market is solid: illegal immigrants.

One reason for the high reliability of “individual taxpayer identification number” mortgages is that banks actually screen applicants thoroughly. Illegal immigrants, who don’t have valid Social Security numbers, typically must submit more documents than U.S. citizens, including payroll and tax records. Had banks checked subprime applicants this closely, a lot of today’s pain could have been avoided.

Another reason, according to the Journal, is the work ethic of immigrant families, most of them Latino. Immigrant households make it a priority to pay the mortgage before anything else. Illegals who worry about deportation don’t want the added risk of angering their bank.
@Maryland, I know they are 3 years old. Did you even read my entire question? Please re-read it.

8 Comments
  1. Reply
    PIXIE
    February 9, 2011 at 1:34 am

    i would like to see the 2011 numbers. everything was way better under bush.

  2. Reply
    Stanley343
    February 9, 2011 at 2:09 am

    It added over 500,000 foreclosed homes to our mortgage crisis, that has been recorded. The people working and paying their loans are the ones that should be granted citizenship.

  3. Reply
    WTF Chuck
    February 9, 2011 at 2:32 am

    Great question! they’ll blame Obama for all these forclosed homes LOL!

  4. Reply
    Conservatives Hate Change
    February 9, 2011 at 3:17 am

    This is what happens when you have Republicans dealing with immigration issues. They go after the ones that are working hard and paying their bills, while they ignore the real bad guys.

  5. Reply
    Mr. 2Cents
    February 9, 2011 at 3:43 am

    This affected the housing market in a very negative way.

  6. Reply
    Marylander
    February 9, 2011 at 4:26 am

    Those stories are three years old, by the way.

    In my previous neighborhood, I saw plenty of homeowners without legal residency status lose their homes. Many were swindled into ridiculous finance terms by shady realtors and mortgage brokers within their ethnic communities, sadly.

    Among the illegal immigrants who hung on to their homes, we noticed that many took on multiple tenants in order to pay the mortgage. This contributed to terrible overcrowding as well as increased crime rates as tenants/renters/boarders lost their jobs and work dwindled and they were increasingly idle and depressed. We saw more loitering, drinking, public urination, harassment of women/girls, fights, vandalism, noise complaints. We had more murders / body drops. I could go on and on; it was a dramatic transformation.

    This is an American suburb that was making a comeback before the combination of the housing free-for-all and illegal immigration took a heavy toll on things. Even illegal immigrants are fleeing it now.

    You cannot convince me that encouraging the growth of a desperate underclass in this country is a good thing for our housing market, our society, or anything else. It only benefits those far enough above the underclasses to be safe and comfortable. Nice try, though.

  7. Reply
    mnwomen
    February 9, 2011 at 4:35 am

    Illegal is illegal and trying to rationalize it and justify it does not change it. Illegals need to go home.

  8. Reply
    prairiegrassland
    February 9, 2011 at 4:47 am

    “One reason for the high reliability of “individual taxpayer identification number” mortgages is that banks actually screen applicants thoroughly. Illegal immigrants, who don’t have valid Social Security numbers, typically must submit more documents than U.S. citizens, including payroll and tax records. Had banks checked subprime applicants this closely, a lot of today’s pain could have been avoided.”

    There’s the money shot. Thanks for sharing this, Tony.

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