Illegal Aliens Took Out 5 Million Fraudulent Mortgages?
Now as my regular readers know, I am not a fan of illegal immigration. But a report coming out of HUD is saying that 5 million fraudulent mortgages were taken out by illegal aliens.
I do believe that 5 million mortgages could have been taken out by illegal aliens. That would not surprise me in the least. But for 5 million mortgages to be taken out illegally? I seriously doubt that. The only way that this could be the case is if not producing a social security number makes them fraudulent.
And if they were taken out illegally how much culpability do the bankers and the mortgage brokers have in the crime. Will mortgage brokers outnumber drug dealers in the federal prisons?
If the HUD report is to be believed and acted upon this could be the case.
Some five million fraudulent home mortgages are in the hands of illegal aliens, according to the U.S. Department of Housing and Urban Development.
It’s not known how many of those have contributed to the subprime housing mortgage meltdown, but it has affected every state, including Arizona.
The problem began years ago when banks were forced to give mortgages without confirming social security numbers or borrower identification. As a result, illegal immigrants were able to obtain home mortgages which they could not afford. via KFYI
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Comment by Edward F. Haertel on 9 October 2008:
A Google search led me to your comments on the illegal alien mortgages. Having been involved in identity theft investigations, I can think of one way in which the 5 million mortgages might have been fraudulent. I know that since 2001 a Social Security Account Number (SSAN) has been required when closing on a home. I don’t believe that requirement existed prior to 2001, but lenders have asked for an SSAN at least since the mid to late 1970s, though there was no legal requirement to give the SSAN to the lender.
Most illegals have at least one SSAN which they use. Many have several SSANs. Virtually all of these SSANs actually belong to someone other than the illegal, or are “impossible numbers”. Though hardly ever prosecuted (which helps explain the prevalence of identity theft), it is a Federal felony violation for a person to use a SSAN which was not assigned to them by the government. Any mortgage obtained which involved the use of an SSAN by an illegal is, by definition, a fraudulently obtained mortgage which involved a felonious act.
Comment by Tom Royce on 9 October 2008:
Edward
Thanks for the clarification. Great stuff!
Tom
Comment by Serf on 10 October 2008:
I bet you that the default rate among this group is very low.
Comment by J. Mario on 14 October 2008:
Hey wait a minute — did you say illegal and aliens and loans in the same sentence? First of all, illegal is illegal and if you do a thorough research of the sorts of loans that were being funded by ALL mortgage lenders a whole slew of them were illegal not just those originated on unsuspecting aliens — particularly the non-english speaking ones. These autrocities go unmentioned in your conclusions, but the vast majority of these loans were deceptive against these folks, not the other way around. Aliens, for anyone interested, are aliens because that is how they are categorized here, but in the end, everyone who isn’t indiginous to this country (as in native indians) is such. And lastly the mortgage industry is guilty (as in illegal) of making the whole mess up and now wanting to point fingers at someone. C’mon guy, get the facts right. You allude to a lot of stuff in your posting, but do you truly have the divvy on this sort of stuff? Unless you have walked in another’s moccasins, you can’t, can you.
Comment by Fred on 18 October 2008:
Lets just cut all the bull crap here! I as a U.S. citizens was even offerd a loan without any S.S.I. number in a E mail ad,before this bail out! It also offerd a no money down loan also, with no proof of employment! Now you tell me how stupid that is! That simply means these lenders had no idea who those barrowers where in the first place!
Comment by Al on 18 October 2008:
If you used any form of federal fraud to get any home loan-Native American or not, that is indeed a federal FRAUD anyway! NO ifs ands or butts about that fact!