More Information on the Role of Illegal Aliens in the Financial Crisis

The Sub-Prime Mortgage Mess and Illegal Aliens

Politically Correct loans and low interest mortgage policies(remember Freddie Mac, Fanny Mae, and anti-redlining?) helped fuel the financial crisis by making race-based loans regardless of the borrowers’ financial status or ability/desire to ever pay the mortgage. Even worse, there is evidence that the core of the problem may have been illegal aliens and the rush by business to get their government guaranteed money, the GOP desire for amnesty because these new homeowners might vote Republican (the Bush-Rove Strategy, see link below), and the Democrats seeking new voters, legal or not.

It is no accident that the bulk of the foreclosures, and thus the financial crisis, originated in California, Nevada, Arizona, Texas, and Florida; states burdened with the most illegal immigrants.

Here is an excerpt from an article from May 3, 2007 in the WSJ via the New Jersey Real Estate Report via the American Patrol

This should have served as a warning that the big banks were moving in on the lucrative illegal alien home market. And why not? It was supported by the GOP, Congress, and the White House. The open borders looked permanent, and besides, it was all guaranteed by the government (i.e. the long suffering taxpayers).
------------------------------------------------------------------------------------

From the Wall Street Journal:
Big Banks’ Loan Push: Illegal Immigrants
Mortgages Get Pitched To Underserved Market; Critics Find Some Risks
By ROBIN SIDEL
May 3, 2007; Page C1

The nation’s big banks, scrambling for customers, are pitching mortgages to illegal immigrants.

Two years ago, making home loans to people who are in the U.S. illegally was largely limited to community banks that wanted to revitalize neighborhoods by offering low-cost mortgages to local workers. There are signs that these loans, which comply with regulatory requirements and which represent a sliver of the nation’s $10 trillion mortgage market, are starting to take off in the broader banking industry.

J.P. Morgan Chase & Co. is developing a pilot program to pitch mortgages to illegal immigrants in Maricopa County, Ariz. If the bank proceeds, the plan could launch as soon as this summer. The New York bank joins Citigroup Inc., Wells Fargo & Co. and Fifth Third Bancorp, which also are experimenting with the loans.

Genworth Financial Inc., meanwhile, is testing insurance products tied to the loans. Deutsche Bank AG has teamed up with the Hispanic National Mortgage Association to develop a secondary market where big banks can sell and trade the loans, potentially reducing risk with keeping the mortgages on their balance sheets.

“Whoever hits the street first with these loans will be the winner,â€