Thread: Immigrant bill worries banks

http://www.chron.com/disp/story.mpl/bus ... 44981.html

May 7, 2006, 6:23PM


Immigrant bill worries banks
Some fear being branded felons for serving clients
By BECKY YERAK
Chicago Tribune

CHICAGO - Headquartered in the heart of Chicago's Little Village neighborhood since the late 1800s, Second Federal Savings isn't shy about marketing itself to immigrants.

On the home page of its Web site, a link directs undocumented immigrants to a program that can help them become homeowners.

Over the years, the West Side-based institution, with $280 million in assets, has made 782 loans to undocumented immigrants, with about $87 million of such loans currently on its books.

"Our plan is to target the immigrant community," said Chief Executive Mark Doyle.

So when Congress recently began a heated debate on ways to restrict illegal immigration, Second Federal was among the banks to get the jitters.

Particularly worrisome to financial institutions serving undocumented individuals is a bill sponsored by U.S. Rep. James Sensenbrenner, R-Wis., and recently approved by the House that would make it a crime for any person or business to help illegal immigrants.

Some bankers worry that such a law could end up making a criminal out of any institution making loans to illegal immigrants. Homeownership should be encouraged to stabilize a community, they say.

One banker worries that if the U.S. government plays hardball with immigrants, then hostilities could erupt in the United States, just as they did recently in France.

The issue has become so explosive that a branch of Bank Calumet, which has $1.1 billion in assets, was the site of a protest that ended in fisticuffs.

In Chicago, Second Federal is based in a neighborhood with the city's highest concentration of Mexican immigrants, and nearly half of the community is undocumented, Doyle said.

"We really don't differentiate between documented and undocumented," he said. "We're a financial institution where these immigrants come to work, and they have a pride of ownership and superior work ethic."

Bank of America, Banco Popular, Citibank, Chase, LaSalle and Fifth Third also have branches in the neighborhood, he pointed out.

As part of an Internal Revenue Service program, Second Federal issues individual taxpayer identification numbers, or ITINs, to immigrants who don't qualify for a Social Security number, but who want to become homeowners and need proper documentation.

Also offering ITIN loans is Milwaukee's Mitchell Bank.

"Since we issue ITINs, we open bank accounts and make mortgage loans to people who are undocumented," said James Maloney, chairman of Mitchell, which was founded by his wife's family 99 years ago in what was then a German and Polish neighborhood on Milwaukee's south side. The low-income neighborhood is now 70 percent to 80 percent Latino, with both documented and undocumented immigrants.

"It would be a short jump to say that all those activities come within the Sensenbrenner definition, that any encouragement or assistance to remain makes us a felon," Maloney said.

Mitchell Bank also said it's "impossible" to sort people who are seeking banking services by their immigration status.

I hope it worries the HELL out of them! They are aiding and abetting and should be prosecuted! Oh but wait, if the illegals don't get legal status and they start getting sent back to where ever they came, how is the poor bank going to collect on the loans they made to law breakers?

I say these banks get what they deserve and if they try and raise the rates on legal Americans to make up for it, close every account you have with that bank! Credit Unions are easier to deal with anyway and you at least have a vested interest.

Just more "Big Business" taking advantage of Illegal aliens, so, what do they expect?? Sympathy?

Reason why my husband and I have withdrawn our accounts from banks mentioned on the list. American citizens can't buy and own property in Mexico but yet illegals can buy and own propety in our country. Something is terribly wrong with this picture.

I was just wondering If they are Illigal Aliens and they dont have a ss# or tax ID how do they get a credit report and keep a credit record?. If they dont use one for the Illegals then Why do Legal Citizens have to have credit reports and records?

If they dont use one for the Illegals then Why do Legal Citizens have to have credit reports and records

Haven't you heard, the law only applies to law-abiding American citizens. Everyone else can do as they please.

Companies should be fined for doing business with illegal immigrants, not allowed to make money off of them!!!!

added to homepage

http://www.alipac.us/article1207.html

W

http://www.secondfederal.com/sdf/contac ... ederalForm

Contact them...I just did!

These banks are co-conspirators in violating federal immigration law, US banking regulations, and aiding and abetting in identity and tax fraud. The fact that these banks can openly flout the law and even promote loans, offer credit, and provide banking services to immigration criminals demonstrates both just how powerful these institutions are and how utterly corrupt, weak, and worthless politicians charged with the responsibility for oversight and reform of the banking industry is. I'm sure if there wasn't a federal law against offering loans and banking services to known terrorist groups, US banks would be doing business as usual making profits at the expense of the American people while brave soldiers fight and sacrifice their lives against these same terrorists. Capitalism is not synonymous with capital treason, and that's what banks are able to buy political prostitutes in Washington to allow them to do.