Michelle Malkin takes a peek at the connection between illegal aliens and the sub-prime mortgage meltdown on her site today, stringing together a pretty substantial body of evidence that confirms what many of us in Prince William County have suspected for so long: that the real estate bubble was largely fueled by identity and credit fraud and other immoral, of not outright unlawful activity involving substantial numbers of illegal aliens. This is what “celebrating diversity” as a prime policy mover will get you, especially when that “celebration” steadfastly ignores the legal status of the persons being attracted to the scheme.
The tenor of the discussion in the mainstream media is to blame the local communities that discourage illegal immigrants. And that is very mistaken. The illegals committed a crime by entering this country without documentation. Other Hispanics committed fraud by luring their fellow Latinos into mortgage arrangements that were destined to fail, and by misrepresenting credit credentials to the lending institutions. Immigrant homeowners of record violated the local zoning laws. Employers of these illegals were complicit by hiring them against federal law. The mortgage sellers were duplicitous in lending money on paper to clients who clearly did not qualify. The banks were unscrupulous, knowing that they could skim a profit and package and resell the paper before the scheme crashed. The Wall Street buyers of the paper defrauded their investors by making bad judgements in buying these mortgage packages from the banks.
Of paricular note is how our federal government encouraged this mess in the first place by subsidizing loan programs that would benefit illegal aliens with taxpayer dollars, and then required lenders to not ask any questions about legal status. As a result, it was the federal government that encouraged this unlawful behavior and was actively complicit in the disaster that has befallen so many communities.
A 25-year veteran of the mortgage industry in California confided to me recently: “It boggles the mind to think how many illegal aliens are homeowners in this country thanks to these programs, all fully insured by our government. Because of fear of lawsuits for discrimination I can also tell you that a lender may have a borrower who speaks little or no English who claims to be either a citizen or resident alien and it will not be questioned nor any proof required. Since FHA does not require any such documentation, a lender cannot cite their regulations as a basis for the request as they can on conventional loans.”
Another easy avenue to home ownership is through the use of bogus Social Security cards. Moneylenders have no access to a verification system to check Social Security numbers before approving loans. A Department of Homeland Security investigator informs me that an ongoing federal probe of FHA/HUD-backed loans found that “a staggering number were approved to persons with false Social Security numbers.” The Denver metro area alone accounted for 20,000 to 40,000 of the FHA-approved loans for suspected illegal aliens. “Even if a small percentage of the loans were foreclosed, HUD could be bankrupted,” the homeland security official said.
No wonder citizens are engaging at the state and local levels, demanding that their elected officials take action to reduce the number of illegal aliens unlawfully residing in their communities. The federal government not only hasn’t fulfilled its obligation to protect and defend the people of the United States, but in many ways is actually aiding and abetting those who break the law and using your taxpayer dollars to do so.
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