Saturday, October 11, 2008

Illegal residents but responsible homeowners - Los Angeles Times

Illegal residents but responsible homeowners - Los Angeles Times: "More than 12,000 home loans were issued in recent years through a special program that relies on government-issued taxpayer identification numbers instead of Social Security numbers, according to the association.

The identification numbers, known as ITINs, were designed for foreign-born residents living legally in the U.S. but are widely acknowledged to be used primarily by illegal immigrants.

The real estate association does not keep statistics on foreclosure rates. But it has reported that the delinquency rates for taxpayer identification loans were 1.15% or lower in 2006, compared with about 3.5% for other home loans.

Although illegal immigrants are also feeling the effects of the downturn in the U.S. economy, Sandos and others cite one major factor for the success of taxpayer identification loans: stricter requirements, including larger down payments, pre-purchase counseling and fixed mortgage rates."

So all the requirements that were waived for low income Americans were kept in place for illegal immigrants, and the result is the former are more likely to default than the latter. Dog bites man. Maybe the National Homeownership Initiative wasn't such a good idea?


Chris Cashman said...

Um, yes - I would agree with THAT! Bad idea. A major contributing factor in our economic meltdown, to be sure.

Miss your class, Dr. McKenzie! Greetings.

Chris $-Man said...

Um, yes! A bad idea, for sure. A major contributing factor to our economic meltdown.

Miss your class, Dr. McKenzie! Took Poli Sci 101 last summer for 4-week session. Greetings.