Illegal Immigration And The Mortgage Mess

The Mother of All Bailouts has many
fathers. As panicked politicians prepare to fork over
$1 trillion in taxpayer funding
to rescue the
financial industry, they`ve fingered regulation,

Fannie Mae and Freddie Mac,
the Community
Reinvestment Act, Jimmy Carter, Bill Clinton, both
Bushes, greedy banks, greedy borrowers, greedy
short-sellers and

home ownership


call `em greedy,
that would be racist) for blame.

But there`s one giant paternal
elephant in the room that has slipped notice: how

illegal immigration

crime-enabling banks

open-borders Bush policies
ffueled the mortgage

It`s no coincidence that most of
the areas hardest hit by the foreclosure wave—Loudoun
County, Va., California`s Inland Empire, Stockton and
San Joaquin Valley, and Las Vegas and Phoenix, for
starters—also happen to be some of the nation`s largest
illegal alien sanctuaries. Half of the mortgages to
Hispanics are

(the accursed species of loan to borrowers
with the

shadiest credit histories
). A quarter of all those
subprime loans are in default and foreclosure.

Regional reports across the country
have decried the subprime meltdown`s impact on

illegal immigrant
A July report showed that in seven of
the 10 metro areas with the highest foreclosure rates,
Hispanics represented at least one-third of the
population; in two of those areas—Merced and
Salinas-Monterey, Calif.—Hispanics

comprised half the population.
The amnesty-promoting

National Council of La Raza and its Development Fund

have received millions in
federal funds

their constituents on obtaining mortgages with little to
no money down; the group almost succeeded in attaching a
$10-million earmark for itself in one of the housing
bills past this spring.

For the last five years, I`ve
reported on
the rapidly expanding illegal alien home loan racket.

The top banks clamoring for their handouts as their
profits plummet, led by

Bank of America
, launched aggressive campaigns to
woo illegal alien homebuyers. The quasi-governmental
Wisconsin Housing and Economic Development Authority
jumped in to guarantee home loans to illegal immigrants.
The Washington
noted, almost as an afterthought, in a 2005

"Hispanics, the nation`s fastest-growing major ethnic or racial group,
have been courted aggressively by
real estate agents
mortgage brokers
and programs for first-time buyers
that offer help with closing costs.

"Sin verificacion de ingresos! Sin verificacion de
—which loosely translates as, `Income tax
forms are not required, nor are immigration papers.`"

Hispanics Gain Foothold in Housing Market
, By
D`Vera Cohn, June 13, 2005]

In addition, fraudsters have
engaged in massive house-flipping rings
using illegal aliens as straw buyers
. Among many
examples cited by the FBI: a conspiracy in Las Vegas
involving a former Nevada First Residential Mortgage
Company branch manager who directed loan officers and
processors in the origination of 233 fraudulent Federal
Housing Authority loans valued at over $25 million. The
defrauders manufactured and submitted false employment
and income documentation for borrowers; most were
illegal immigrants from Mexico. To date, the
FBI reported
"Fifty-eight loans with a total value of $6.2 million
have gone into default, with a loss to the Housing and
Urban Development Department of over $1.9 million."

It`s the tip of the iceberg. Thanks
to lax Bush administration-approved policies allowing
illegal aliens to use

consular cards"

taxpayer identification numbers
to open bank
accounts, more forms of mortgage fraud have burgeoned.
Moneylenders still have no access to a verification
system to check Social Security numbers before approving

In an interview about rampant
illegal alien home loan fraud, a spokeswoman for the
U.S. General Accounting Office
told me
five years ago

"[C]onsidering the size of
Los Angeles
, New York
, Chicago, Houston and other large cities throughout the
United States
known to be inundated with illegal aliens, I don`t think
the federal government is willing to expose this problem
for financial reasons as well as for fear of political

The chickens are coming home to
roost. And law-abiding, responsible

are going to pay for it.



Michelle Malkin [email
her] is author of

Invasion: How America Still Welcomes Terrorists,
Criminals, and Other Foreign Menaces to Our Shores

for Peter Brimelow`s review. Click

for Michelle Malkin`s website.
Michelle Malkin`s latest book is "
Exposing Liberals Gone Wild.