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,
deregulation,

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

minority
home ownership

mau-mauers
(can`t

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
and

open-borders Bush policies
ffueled the mortgage
crisis.

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

subprime
(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
"victims."
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
to
"counsel"

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

Wachovia
and
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
Post
noted, almost as an afterthought, in a 2005
report:

"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.

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

[More
Hispanics Gain Foothold in Housing Market
, By
D`Vera Cohn, month="6" day="13" year="2005" w:st="on">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 w:st="on">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

"matricula
consular cards"
and

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
loans.

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
, w:st="on">New York
, Chicago, w:st="on">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
repercussions."

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

taxpayers
are going to pay for it.

COPYRIGHT

CREATORS SYNDICATE, INC
.

Michelle Malkin [email
her] is author of

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

here
for Peter Brimelow`s review. Click

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