There could be even millions of mortgages to illegals, which are in danger of default and foreclosure with losses to lenders and the net taxpayer behind them. How can this be considered an overall gain from openness to diversity of foreign criminals; the disvalue is obvious and about to become even more obvious over the next few years of foreclosures on these fraudulent credit transactions. Openness to fraud is not valuable, and what else can no-money-down, six-figure mortgages for people using fake ID's be expected to yield? The incomes of so many of these undesirable immigrants are so low that fraud is the only way they can get loans in these amounts. This is another way that valuing openness to diversity corrupts and devalues our system, at enormous cost.
From a report by Michelle Malkin: link to Malkin
"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."
Added 7-23-08 from : Monday, July 21, 2008
The Diversity Bubble Deflates At Rates Not Seen Since the 1930's
With California median house prices now down over 30% in one year, mainly on a wave of foreclosure sales in barrios, the pro-diversity notions of expanding and diversifying downwards the eligibility for mortgages, have come to be questioned, as here: VDARE.com column
Bush's Ownership Society is flattening down towards a foreclosure-ship society, at least along those ragged edges where the diversity was getting 'excluded', and needed government action of the aggressive-inclusive kind. For several years it was possible for low-end buyers to take on mortgages which they had no hope of making the payments on, as price appreciation could be borrowed against. Prices had only to stop going up for a year or so, though, to reveal the unsoundness which would drive the current wave of foreclosures. Zero-down payment mortgages for people using fake ID were being made on a large scale, opening the way to an explosion of fraud. The re-blowing of this bubble then would seem to require that a new group of buyers, using NEGATIVE down payments, be found and subsidized by government. Otherwise they have to wait for general inflation to work its way through to the busted flim-flam distressed zones, which are diversity HQ quite often.