Thread: Foreclosures & Illegal Aliens

Many people involved in real estate sales know that loads of illegal immigrants were able to purchase homes before banks began to crack down on fake/misused social security numbers.

Does anyone know any information on illegals and foreclosures? IF they lied about their residency status on their mortgage application, doesn't that mean mortgage fraud?

The role fraud played in the mortgage crisis...interview with an industry insider
April 11, 4:29 AMNorfolk Crime ExaminerDave Gibson


After writing several articles about this country’s mortgage meltdown and the little-talked about role which illegal aliens have played in this crisis, a woman who I will call “Maryâ€

Unreported - Illegal Aliens Home Loan Fraud and The Financial Crisis

Thanks to lax Bush administration policies allowing illegal aliens to use "matricula consular cards" and taxpayer-identification numbers to open bank accounts, mortgage fraud has grown. Money-lenders still have no access to a verification system to check Social Security numbers before approving loans.

October 2001, President Bush signs the USA Patriot Act. In section 326(b) is a provision that allows US banks to accept Mexican Matricula Consular cards as valid ID for opening bank accounts. (NOTE: No Mexican banks accept their own government's Matricula Consular card as valid ID to open a bank account because the bearer's identity is virtually untraceable. In contrast, almost all US banks will accept it.) An estimated 9 million Matricula cards have been issued in the US FDIC Regulations on Matricula Cards

U.S. law enforcement officials cite that MatrÃ*cula Consular cards are issued by Mexican Consulate without checking the authenticity of the applicant's supporting documentation. In testimony to the Senate Judiciary Committee, the FBI disclosed and reported that the MatrÃ*cula Consular card is inherently unreliable and unverifiable as an identification card and is highly vulnerable to fraud, regardless of its security

AS panicked politicians prepare to fork over $1 trillion in taxpayer funding to rescue Wall Street, 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 promoters for blame.

But there's one villain that has slipped notice: how illegal immigration, crime-enabling banks and open-borders Bush policies fueled the mortgage crisis. It's no coincidence that 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 - also happen to be some of the nation's largest illegal alien sanctuaries. Half of the mortgages to Hispanics are subprime. 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 were at least one-third of the population; in two of those areas - Merced and Salinas-Monterey, Calif. - Hispanics comprised half the population. The 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 passed 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 guaranteed home loans to illegal immigrants.

The Washington Post noted in 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. Ads proclaim: "Sin verificacion de ingresos! Sin verificacion de documento!" - which loosely translates as, 'Income tax forms are not required, nor are immigration papers.' "

Fraudsters also have engaged in house-flipping rings using illegal aliens as straw buyers. Among many examples the FBI cites: 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 made 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 policies allowing illegal aliens to use "matricula consular cards" and taxpayer-identification numbers to open bank accounts, mortgage fraud has grown. Money-lenders 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 US General Accounting Office told me five years ago: "Considering 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 repercussions."

The chickens are coming home to roost. Law-abiding taxpayers are going to pay for it.
Editorial by Michelle Malkin - Web Site MichelleMalkin.com

UndocumenteBorderGuard wrote:
I WAS WRITING THE NEWSPAPERS (IE:PROPAGANDA MACHINES); THE CITY COUNCIL; THE DEPARTMENT OF COMMERCE; LOCAL BROKERS AND STATE REPS... FOR MONTHS.

I STARTED WRITING THEM 5 YEARS AGO WHEN I NOTICED THIRD WORLD TACO BELL WORKING ILLEGAL ALIENS PURCHASING HOUSES IN THE 200-300K RANGE - HOUSES THAT WERE, OBVIOUSLY, WAY BEYOND THEIR MEANS...

THESE PEOPLE WERE TRASHING AND ABANDONING HOUSES IN NEIGHBORHOODS THAT ONCE THRIVED; HOUSES THAT I PERSONALLY HAD WITNESSED, GOOD HARDWORKING, LAW
ABIDING CITIZENS SPEND A LIFETIME WORKING FOR AND PAYING OFF AFTER DECADES OF LABOR.

THESE PEOPLE CAME IN AND DECIMATED THIS AREA IN MONTHS TIME. THEY WOULD TRASH THEM AND THEN WALK AWAY BECAUSE THEY HAD ABSOLUTELY NOTHING IN THEM -
NOT EVEN THEIR CREDIT OR GOOD NAME WAS TIED TO THESE WRITE-OFFS...THEY DIDNT CARE BECAUSE IT WAS AN AMERICANS GOOD NAME THAT WAS STOLEN ALONG WITH THEIR SOCIALSECURITY NUMBER THAT MADE THIS QUARTER MILLION DOLLAR SQUAT AVAILABLE TO STINK UP FOR A YEAR UNTIL THE EVICTION NOTICE CAME FOR NON PAYMENT DEFAULT.

I SAW IT ALL... I SAW THESE HOUSES BEING TOSSED AROUND LIKE LOST TOYS FROM A FORGOTTEN BOARD GAME...

I SENT DOZENS AND DOZENS OF EMAILS ASKING HOW THIS WAS HAPPENING? WHO WAS RESPONSIBLE?

HOW DID THESE THIRD WORLD UNDOCUMENTED ILLEGAL ALIENS WITH NO CREDIT HISTORY WITH NO EDUCATION WITH NO SKILLS WITH NO MONEY -WITH NO ID - GET LOANS FOR $250,000.00 HOUSES, ONE AFTER ANOTHER...HOW DID THIS HAPPEN WHEN NO ONE EVEN KNEW WHO THEY WERE?

HOW ARE THESE SAME PEOPLE FLOODING THE WELLS FARGO BANK IN THE SUPERMARKETS SETTING UP ACCOUNTS AND LOANS WHEN THEY AREN'T EVEN USING THEIR OWN LEGIT IDENTIFICATION? HOW IS THIS HAPPENING?

MY QUESTION TO THE MANY I EMAILED WAS "HOW ARE ILLEGAL ALIENS WITH ZERO CREDIT AND QUESTIONABLE IDENTITY -THAT ARE LITERALLY UNDOCUMENTED - GETTING
A 250 THOUSAND DOLLAR HOME LOAN" NO QUESTIONS ASKED? HOW?


http://www.warriorsfortruth.com/illegal ... fraud.html

Bill Would Prevent Mortgage Fraud by Illegal Aliens
Thursday February 18, 2010

A U.S. Congressman from Texas has just introduced a bill intended to prevent mortgage fraud by illegal aliens.

The Mortgage E-Verify Act, introduced by Rep. Kenny Marchant (R, Texas 24th), would require that the identity of all applicants for new or modified mortgages held by Fannie Mae or Freddie Mac or insured by the FHA, be confirmed through the E-Verify program of the Department of Homeland Security.

"My bill will potentially save millions by cutting down on fraudulent claims from illegal immigrants and protect taxpayers from subsidizing the restructuring or renegotiation mortgages of illegal immigrants," said Rep. Marchant in a press release.

Marchant cites Treasury Department data showing that incidents of mortgage fraud increased an estimated 1,411 percent from 1997 to 2005. "Furthermore, two-thirds of fraud reports in the last decade are due to falsified statements on loan documents," he noted. "My bill would curb these abuses and protect the taxpayers."

There was a major case in Nevada where a mortgage company branch manager conspired to manufacture and submit false employment and income documentation for borrowers, most of whom were illegal immigrants. Fifty-eight of the 233 fraudulent FHA loans totaling $6.2 million have, not surprisingly, gone into default, costing HUD nearly $2 million. The branch manager was found guilty on 32 counts of submitting false information to HUD, and one count of conspiracy. -- U.S. Rep. Kenny Marchant press release.

The FBI defines mortgage fraud as "a material misstatement, misrepresentation, or omission relied upon by an underwriter or lender to fund, purchase, or insure a loan.


http://usgovinfo.about.com/b/2010/02/18 ... aliens.htm

How can "we the people" get something on the ballots to have these departments investigated by SOMEONE who is honest and can end these things that ARE DESTROYING America to a deadly end?

Originally Posted by OneNationUnderGod

The role fraud played in the mortgage crisis...interview with an industry insider
April 11, 4:29 AMNorfolk Crime ExaminerDave Gibson


A) The Sub Prime underwriting guidelines had special requirements for, what was called, Foreign Nationals….30% down and full credit package including credit references from their country of origin and a valid Visa. To circumvent this requirement, the applications were marked that the borrower was a US citizen then, regardless if the credit profile did not support such a claim, an underwriter was not allowed to question. This along with use of stolen SS# or use of their American born child’s SS# and lax credit requirements that allowed alternative credit, helped cover the ruse. All required documentation was fraudulent and with the large use of a/k/a’s, information was hard to track.

Well.

There's so much more to this, but this proves that the pandering to illegal aliens, FOR SOME UNGODLY REASON, is not only rampant, but it's intended.

Do "any" of the participants realize that they are "aiding and abetting" FELONS?

What is that - another FELONY for "aiding and abetting"?


Americans are abiding with our law and this crap is rampant.

Simply because they say three words - I'm illegal alien - they get OUR TAX DOLLARS "THRUSTED" AT THEM to FREELY STEAL AT WILL!

Oh I just stupidly realized something. It's not ONLY our tax dollars they're getting, but they're getting OUR MONEY IN THE BANKS WE'VE TRUSTED.

God please help "we the people" to learn how to stop this terrorist invasive assault against us and our nation - please and thank You for all You do God.

Rocky Mountain Mortgage Fraud Fever
December 11, 2006 @ Carola Von Hoffmannstahl-Solomonoff

District Attorney Scott Storey of Jefferson County, Colorado is one busy lawman. The local housing market is chock full of mortgage fraud varmints. One particularly pesky ring, operating for roughly 5 years, recruited hundreds of illegal immigrants to act as “straw buyers,â€

At first they used stolen SSN and most often those of Puerto Ricans. I read about a case where a man in Orlando ended learning that he was the victim of identity theft and the people involved bought a house in Miami Dade County and it ended up in foreclosure. Later on they were able to use tax registration numbers instead of SSNs. When we did our mortgage they asked for SSNs and the form also asked for a tax registration number if you did not have a SSN. Another thing I noticed as well is there were all these mortgage brokers advertising mortgages where you paid something like $500 a month for a $750,000 mortgage for the first year or two. The majority of us know that later on you are going to be hit with the difference and that payment could end up being close to $3,000 a month. Immigrants be it legal or illegal did not know that and fell for it. Those brokers advertised in the ethnic publications all the time. I used to see them in the Russian magazines and offered by Russian brokers. Some of the victims lived in my condo complex.

Someone I didn't know called trying to talk to my mom about a house she supposedly owned, who was in an institution for dementia at the time. I got scared and called the cops. It turned out to be a false alarm - someone was trying to make an offer on a place owned by a woman with the same name - but the cop did share that there was a straw buyer in the area they were looking for, who would buy big ticket homes fraudulently.

But usually they steal Hispanic identities, for credibility to get through closing.

There was also a case next door to someone I knew. A Mexican family bought a house and moved in, and were gone a few months later. Scuttlebutt was that they were foreign, so they thought that the cash they turned over at closing paid for the house. But it could have been part of one of these rings, too.

To add insult to injury, an American was foreclosed on in my neighborhood. City Code Enforcement came to board up some of the windows, and found illegal Mexican squatters inside. (they ran off). Thankfully the house was rennovated and is now owner-occupied again.

A lot of good stories on here. Too bad this country has turned to such greed and "screw thy neighbor before he screws you" attitudes.

I BLAME THE GOVENMENT AND PC!
One for not doing their jobs and duties

Originally Posted by uniteasone

A lot of good stories on here. Too bad this country has turned to such greed and "screw thy neighbor before he screws you" attitudes.

I BLAME THE GOVENMENT AND PC!
One for not doing their jobs and duties

I agree. This mess never happened in Canada becuase there you need 25% down to buy a home easily. If you have 10% but less than 25% you can get a mortgage but you have to pay for an insurance policy incase you end up foreclosing. The government set the insurance rate and the bank adds that cost to your mortgage. This prevented straw buyers and investors buying up and flipping properties.