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Illegal Immigrant Home Loans

By
Real Estate Agent with Re/Max Boone Realty

I just read the following article in the REALTOR magazine online article "Mortgages for Illegal Immigrants Grow in Popularity"  http://www.realtor.org/RMODaily.nsf/pages/News2007100903?OpenDocument.  I don't know this sort of shocked me a bit.  Lenders evaluate these types of borrowers differently than the "traditional borrower".

So people come to this country illegally, get jobs illegally, and can legally purchase a home with a lender?  All the Lending is legal?  If the Lender knows they are here illegally how do they bring themselves to loan the money.  I don't think I could bring myself to help someone who was here illegally find a home because I would feel like I'm contributing to an illegal act. 

I'm sure there are many view on this so shoot me your thoughts.  I very interested in them.

 

April Ferrao

 

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Michael La Fay
Meadow Lakes Supply Co. - Wasilla, AK
it seems as though lending money to folks who are here illegally should in and of itself be an illegal act... will there be repercussions?????
Oct 17, 2007 04:44 PM
Terry Day
Mountain View Mortgage - Las Vegas, NV
ITIN number loans are a reality. If you remember a while back there was a big controversy with BofA about lending to illegal immigrants. They have subsequently stopped. The major player in the ITIN loan market right now is Wells Fargo, I believe. There is also a wholesale lender, Banco Popular, that specializes in these loans. The truth is that the underwriting guidelines are not the nightmare they seem. I can originate FHA and MyCommunity/HomePossible loans with no FICO scores. The same guidelines apply, which would be 3 alt tradelines, given one of the alt tradelines is rent, or 4 alt tradelines. No lates in the last 12 months, and these loans must be manually underwritten. Now obviously someone that barely meets the underwriting guidelines but doesn't have any compensating factors like assets will not be approved. You can bet that the qualifying DTI ratios are much lower than your automated underwriting approvals as well.  
Oct 17, 2007 05:43 PM
HomesByOwner of Jefferson City
HomesByOwner.com - Jefferson City, MO
Thats interesting, I have bookmarked this blog and I am curious what kind of comments you will get, thanks again for posting
Oct 17, 2007 06:07 PM
Linda Scanlan
A Fan of AR - Burleson, TX
What I don't understand is what part of "illegal" don't they understand. It's not discrimination. It's about upholding the laws we have on our books. Illegal is illegal!
Oct 18, 2007 12:23 AM