Immigration and the Mortgage Meltdown

Reader Comments
Back to blog

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.
But there is another reason, Sandos said.
"They come for the promise of a better future," he said. "They come for the promise of homeownership. Once they have it, they are going to move heaven and Earth to keep it."

of 12:16AM October 09, 2008

All I'm saying is that we have to stop projecting our shortcomings unto foreigners. Take the energy crisis for instance; many politicians blamed developing countries in Africa, Asia and South America for their increased demand which in turn led to the shortage in our supply.
I make the argument that the Bush administration should have enforced the borders in the first place. If we had the balls to stand up against business interests who needed cheap Mexican labor, we'd be better off today. Similarly, we should have aggressively developed alternative sources of energy two decades ago.
I'm a proud American....no challenge is beyond our will and ability. But lately, we have elected idiots who wait till the sky starts falling so they can blame Mexicans for the mortgage crisis or blame India for high gas prices...It makes no sense.
There's alot of blame to go around, but one solution is to stop electing PERSONALITIES and start electing LEADERS.

JoeSixPack of AK 11:50PM October 08, 2008

you taking the position that giving sub prime mortgages (or any mortages) to illegal immigrants was a good thing to do? Is that your position, because it's just makes such brilliant sense.
Obviously, to point it out it remarkably racist like Barney Frank suggested. Mr. Frank had nothing to do with this either.

Dan Hart of CA 11:33PM October 08, 2008

It drives me crazy to talk about Palin, but well here we go. No one, not even John McCain has made a substantive argument why this woman should be elected Vice President on a ticket led by a 72 year old man, who clearly has no intention of seeking a second term.
Palin's personal life and political triump in Alaska is very compelling and inspiring. She's a strong woman and it shows. However, over the past few weeks she has shown in several interviews and during the VP debate that she lacks an informed worldview. Her response to economic issues such as bankruptcy and taxes is one word; 'Maverick'. Her response to America's foreign policy puzzle is 'Barack Obama wants to wave the white flag of surrender'. Her response to any questions about her qulaifications is, 'JoeSixpack'. And, unbelievably, when asked which specific newspapers she reads, she responds 'Any and all of them'.
But, given the current political and socio-economic challenges facing the nation, we cannot afford to elect a novice to the Vice Presidency simply because she's 'folksy' or 'cute'. I can't argue with you if you agree with Palin's policies(which are nonexistent), but i take issue with anyone who supports her candidacy because she's a 'Joesixpack' lady.
I know a few Joesixpacks, hell i may be one of them. These are decent people who see the world in white and black, NO GRAYS. They view the world as a choice between two options, regardless of the obvious complexities of day to day life.
For eight years, America has had a 'JoeSixpack' in the White House. How're You Doing???

JoeSixPack of AK 10:52PM October 08, 2008

If only it were true, but they are still streaming in at 10,000 day. The Coyote-in-Chief and ICE have a little dog and pony show going where they make a few big raids, being careful not to bother any businessmen, of course. The object is to convince the people they are achieving border security so that they can proceed with something like the Martinez-Hagel bill and bring in 200-300 chamberpot immigrants legally.

Luther of IL 10:40PM October 08, 2008

Of all my years in politics, the most racist people I met were on the left.

brastrum of CO 8:23PM October 08, 2008

Of all my years in politics, the most racist people I met were on the left.

brastrum of CO 8:21PM October 08, 2008

"just blame the Mexicans". Well of course, pointing out an obvious demographic is racist. Anything that isn't leftist is racist. Isn't that the rule now?

Buford Gooch of CA 6:44PM October 08, 2008

That's right Barone, why don't we just blame the Mexicans and then vote for the senile 72 year old guy. Everything would be just fine.

JoeSixpack of AK 6:35PM October 08, 2008

Perhaps immigrants leaving is behind the house price collapse. Lots of immigrants are just leaving because of stricter enforcement or they have been deported and when they leave, they leave their mortgages behind.

ddd of CA 6:31PM October 08, 2008