|
|
| Bill would require SSN number for a home loan New legislation on Capitol Hill seeks to curb an increasingly popular mortgage concept: providing home loans to applicants using their Individual Taxpayer Identification Number (ITIN), in lieu of a Social Security number.
ITINs are issued by the Internal Revenue Service to assist immigrant workers who do not qualify for a Social Security number — but do have taxable income — to report their income and pay federal taxes.
Dozens of banks around the country have begun offering home mortgages to undocumented immigrants using ITINs, but their programs generally have been low-key and small in volume. Bank of America stirred controversy earlier this month when it announced a pilot program in Los Angeles to provide credit cards to resident-alien customers who lack Social Security numbers but have ITINs.
Some critics charged that the bank was seeking to profit by helping illegal immigrants who should be deported or prosecuted, not extended consumer credit. Bank of America said its program is legal and may be rolled out nationwide if the pilot is successful. 
Now a bill has been introduced in Congress that would prohibit financial institutions from providing home mortgages to anyone who lacks a Social Security number. The bill (H.R. 480), introduced by Rep. John Doolittle, R-Calif., would amend the Truth in Lending Act to make ITIN mortgage lending illegal.
Doolittle's office released a statement that said in part: "The government should not be in the business of creating incentives to encourage illegal behavior. Nor should companies be permitted to reward those individuals in clear violation of our laws."
Proponents of ITIN-based lending to home buyers say Doolittle has it all wrong. Tim Sandos, president and CEO of the National Association of Hispanic Real Estate Professionals, said Doolittle's bill would be "extremely disruptive" and affect far more people than the illegal immigrants the measure purports to target.
Sandos estimates that there are 7 million to 8 million resident aliens in the United States who do not have Social Security cards but are in some phase of the immigration process leading to citizenship. That process can take years — often more than eight years — and "meanwhile these individuals are working here, earning incomes, paying taxes, contributing to the economy."
They "are not illegal," said Sandos, "they are undocumented. The government knows exactly who they are and where they are." Doolittle's bill, he added, "is the equivalent of trying to drive a tack with a sledgehammer." Sandos' group, which comprises Latino and non-Latino representatives of banks, real estate firms, developers, home builders and real-estate-service providers, conducted a study that concluded that if mortgage companies made greater use of ITINs to extend home loans to qualified buyers, $44 billion in new mortgages — primarily to first-time buyers — could be originated.
Geoffrey F. Cooper, director of emerging markets for MGIC Investment Corp., a major private mortgage insurance firm, said lenders in roughly 40 states are already making mortgages to customers using ITINs. MGIC's role is to provide insurance against losses to lenders in the event borrowers default or go to foreclosure.
Cooper said his company's program was initiated at the request of community banks and other local lending institutions that found that many of their customers who lacked Social Security numbers — but had ITINs for tax purposes — earned solid incomes, had stable employment histories and had excellent payment histories on debt obligations.
Under MGIC's program, underwriting standards are strict, with mandatory documentation of income, assets, residency and other criteria — stricter standards, in fact, than many lenders impose on applicants who have Social Security cards.
Home buyers with ITIN mortgages "perform like 'A' credit borrowers," said Cooper, and they qualify for MGIC's favorable 'A-premium' insurance rates because they are so dependable.
Janis Bowdler, senior housing policy analyst for the National Council of La Raza, a Hispanic advocacy group, said the home buyers who use ITIN mortgages should be seen simply as "hardworking, taxpaying families who want to participate in the American dream," even if they do not yet have Social Security numbers because of their immigration status.
Sandos noted that making Social Security numbers mandatory to obtain a mortgage also could affect the ability of Asian, European, South American and other foreign investors who simply want to buy a house or a condo in the United States for periodic visits but not full-time residency. That, in turn, could prompt foreign governments to impose restrictions on the ability of American citizens to buy real estate abroad.
Mortgages for Illegal Aliens Encouraged by FDIC
Diane M. Grassi
The mainstream press has only recently begun to cover the failure of the federal government’s obligation to seriously address the security of the borders of the United States with respect to illegal immigration. Largely due to the launch of the Minute Man Project which took place in April 2005 in a southern border ‘neighborhood watch’ in Arizona, the media was forced to cover the event as it was a symbol of the majority of Americans who believe that the borders should be secured and that U.S. laws should be observed.
For those not fully immersed in the matter however, it is through the mainstream press and broadcast media that most Americans get their information, but they have not addressed many other issues which have evolved as a result of lax immigration policies. And the American people are not aware of how quickly things are changing. Other than the mention of homeland security issues concerning our borders, neither the press nor our lawmakers, in our politically correct climate, are willing to address the matter. So the constant drain on U.S. resources such as energy, roads and infrastructure including services such as medical care and school tuition, to name just a few, are not highlighted. All have added to the tax bill of Americans as well as steep hikes in medical and car insurance rates alone.
Openly adding to the growing list of illicit acts on behalf of illegal aliens are corporate entities and mid-sized businesses knowingly hiring illegal aliens without verification of proper documentation. Long gone are the days when we were told illegal workers were merely filling jobs as domestics in the home or doing the work of landscapers, as many decent blue collar jobs go directly to the illegal population now, bypassing hardworking Americans. And since no fines have ever been issued against any businesses hiring illegal aliens there is no impetus for any to stop, as they enjoy not having to pay benefits or guaranteeing work on a permanent basis.
But while most Americans are at least peripherally aware of these unaddressed problems, many would be surprised how financial institutions are now bending over backwards to woo illegal aliens to become home owners. Until recently it was an unexposed policy, but banks across the nation have now put out the welcome mats in full force, through marketing campaigns.
The FDIC was created by Congress in 1933 to reassure the public’s trust in the national banking system. Although it operates as an independent agency it helps insure account deposits at 8,930 banks in the U.S. Its goal is to “promote the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed.”
However, the FDIC is now formally encouraging “U.S. banks to enter this largely untapped market,” referring to illegal aliens. National banks, Wells Fargo Bank, N.A. and Bank of America, N.A. are leading the charge, granting mortgage loans for a potential home buyers’ market of 215,000 illegal aliens, with many in the local bank communities following suit, some with the help of state housing commissions.
And the FDIC along with the Mortgage Guaranty Insurance Corp. have given their endorsement for banks across the U.S. to offer home loans and other financial services such as car loans to illegal aliens regardless of their immigration status. In doing so, banks are accepting the Individual Tax Identification Number (ITIN) from the Internal Revenue Service in lieu of a Social Security card for which those illegally in the U.S. do not qualify. Wells Fargo and Bank of America have also been accepting the matricula consular card or consul registration number for nearly two years, which can be sought at the Mexican Consulate in the U.S. instead of an ITIN.
Since illegal aliens do not have a credit history, they need only supply the ITIN or a matricula consular card along with proof of income for a period of two years and taxes paid on those wages. Some banks also require history of rent and utility payments. After that however, illegals get the same terms with no penalties as any U.S. citizen or legal resident does. In addition they may later seek a home equity loan like anyone else.
According to Michael Frias, a spokesman for the FDIC, “Banks aren’t legally required to verify legal status. There is no federal law which requires banks to verify the immigration status of foreign account holders.”
The only problem with that statement is that illegal aliens are not merely “foreign account holders”, but are illegal inhabitants of the U.S., courtesy of our banking industry, which is inviolate of the laws of the U.S. Constitution.
According to Kevin Mukri of the Office of the Comptroller of Currency, which is the primary U.S. bank regulator, “Banks are not the arm of the immigration department. It would be discriminatory not to service them.” But under U.S. Criminal Code 274, “It is a crime punishable by 10 years in jail for aiding and abetting someone in this country illegally for commercial gain.” And the Bank Secrecy Act of 1972 provides that “Banks must know their customers and any illegal activity must be reported to the government.”
It is a blatant betrayal of the American people and a terrible precedent set as the U.S. government pretends to uphold the law while condoning the approval of mortgage lending to the illegal community, with a wink and a nod. This is no longer a matter of an employer avoiding the law or about helping those coming to the U.S. in search of a better life. Rather it is the acceptance of lawmakers and law enforcement to ignore the laws of the land, specifically for those who reside in the U.S. illegally. Moreover, it is a flagrant disregard and appreciation of law abiding Americans. Unfortunately, the U.S. government has now mortgaged away the future of America as we once knew it. Sadly, that is something now which we may never be able to reverse.
Courtesy of: http://www.opinioneditorials.com/guestcontributors/dgrassi_20050804.html
###
Diane M. Grassi is a freelance columnist writing commentary on current events of the day providing honest and often politically incorrect assessments. From U.S. public policy to Major League Baseball, Ms. Grassi is an eclectic thinker, demanding the readers to also observe their thinking patterns from a different perspective. Whether you agree with her or not, Diane Grassi will have you coming back to note her opinions, and if at best she wakes you up, then her goal will have been accomplished.
dgrassi@cox.net
| |
|