Will Obama's Immigration Plan Increase The Number Of Purchase Loans?

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Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

Unless you have been in hibernation, or out of the country without access to national news, you are aware of President Obama's intent to approve U.S. access to about 5 million illegal immigrants.  This means a percentage of the 5 million illegal immigrants will most likely attempt to purchase homes in the U.S. rather than rent.  Which begs the question "Will Obama's Immigration Plan Increase The Number Of Purchase Loans?"

On the surface the quick answer would be yes.  Besides opening up U.S. borders to illegal immigrants, Obama's Immigration Plan will provide illegal immigrants with a Individual Taxpayer Identification Numbers (ITIN), which will be assigned by the IRS.  The ITIN will be given to illegal immigrants in place of Social Security Numbers given to U.S. Citizens and Immigrants who have obtained legal immigration status in the United States.

The theory is illegal immigrants who have a ITIN will be able to obtain mortgages, and in fact they will.  Fannie Mae, Freddie Mac, and FHA Guidelines allow the use of ITIN's.  But, and I am sure you knew there was a but coming, regardless of what Fannie Mae, Freddie Mac, and FHA Guidelines allow, very few Lenders will accept an ITIN in place of a Social Security Number in obtaining a mortgage

Also some of the very few Lenders who do accept ITIN's only accept them in a limited number of states.  So while some illegal immigrants will be able to obtain mortgage financing to purchase a home, it will have a very small impact on the Housing Market.

I would further expect the limited number of Lenders who do accept ITIN's in place of Social Security Numbers to be very strict about who they approve for a mortgages.  Congresses has promised to do everything they can to over turn the Presidents Illegal Immigration Plan.  If Congress is successful in doing that, and recorded illegal immigrants are deported, these Lenders will be stuck with non performing mortgages.

So while my initial answer to "Will Obama's Immigration Plan Increase The Number Of Purchase Loans?" was "YES", my more in-depth answer is "Not Many".  But stay tune regardless of my opinion or anyone else's, only time will provide a complete answer to this question.

 

 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who is licensed in #CT, #RI, #MA, #NH, & #FL and can assist you with all your #FHA, #Conventional, #VA, #USDA, and #State Bonded Progam #mortgage needs in #CT, #RI, #MA, #NH, & #FL. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or souto@snet.net

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Rainmaker
2,294,672
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning George. His action to change our immigration policy is just plain unbelievable and arrogant. I wonder what this move will have when it comes our out of control deficit. I don't see an increase in mortgage volume because of his action, at all.

Nov 28, 2014 06:21 PM #1
Ambassador
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TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

Good morning George. Talk about an arrogant lame duck. I wonder how much more damage he will do before he leaves the office. Sadly, we will have to pay for him long afer he is gone.

Nov 28, 2014 07:27 PM #2
Rainmaker
943,506
Bob Ratliff
Robert Ratliff Realty - San Antonio, TX
"Sold with Bob"

George this is very interesting and I've never given it much thought until reading your post. Yes it will probably open many to purchase homes once they have the right documents, I wonder if Texas accepts ITIN for loan applications?

Have a great day....you're sure to be featured on this one 

Nov 28, 2014 07:35 PM #3
Rainmaker
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Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

You provide great insight into what many immigrants see as a benefit to them but really is not!  For us in the business it is business as usual ..thanks for sharing, George.

Nov 28, 2014 08:21 PM #4
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Dagny Eason
Dagny's Real Estate - Wilton, CT
Fairfield County CT, CDPE Homes For Sale and Condo

George- you not only provided great information, you also passed on some great insight.   Thanks so much!

Nov 28, 2014 08:53 PM #5
Rainmaker
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Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

George Souto will have to wait and see what becomes of the immigrant act.    I have a New Zealand family closing on their first home next week.  

Nov 28, 2014 10:12 PM #6
Rainmaker
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Michele Connors
The Overton Group, LLC Pitt & Carteret County - Greenville, NC
Your Eastern North Carolina Realtor

Thank you for this information.. I wondered as I heard his speech but didnt have the details to back up the estimated growth/ numbers.

Nov 28, 2014 10:57 PM #7
Rainmaker
717,070
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

George, Illegals can already get an ITIN in order to pay their taxes.

The news reports that I have heard say Obama plans on giving them social security numbers, not ITINs.

Bill Roberts

Nov 28, 2014 11:26 PM #8
Rainmaker
3,277,388
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

George, I'm somehow thinking that all this "positive spin" on immigration will turn out to be like all the "positive spin" we heard on Obama Care. Not so positive in the long run.

Nov 28, 2014 11:44 PM #9
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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Good points, George, and I think it might remain to be seen.  So many of the proposals seem to have time limits on them.  And I have absolutely no faith that Congress will come up with a plan to with a long term solution.

Nov 29, 2014 07:32 AM #10
Rainmaker
1,675,429
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

Hi George,  Being on the other end of home buying, I have sold a large number of homes to hispanics over the last 5 years.  I have not had any inquire about loans, as they always have paid cash, so I don't now, but if this goes through, we will certainly find out.  We have also had quite a few foreclosures, so some had to have loans.

Nov 29, 2014 11:03 AM #11
Rainmaker
2,706,801
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Hello George,

Well, POTUS was arrogant enough to take this action so I guess his next one will be to provide loans.  After all, employers won't have to cover them with his Obamacare...he'll just keep bending rules to suit his purpose.

Nov 29, 2014 11:05 AM #12
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I wondered this myself. I guess it will be a wait and see. I don't know many that this will affect that can afford to buy a home.

Nov 29, 2014 12:34 PM #13
Rainmaker
844,849
Barbara Altieri
Kinard Realty Group - RealtyQuest Team, Fairfield and New Haven County CT Real Estate - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

George -- I think he'll also open up ITIN acceptance and/or just provide some 'special' loan.  Your use of the word 'illegal' throughout of the post is effective.

Nov 30, 2014 12:09 AM #14
Rainmaker
717,070
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

George, I miss the days when you used to answer all comments. You have taken a page out of Joe's book, but he is wrong on this.

Now Gene on the otherhand always responds to comments and many good conversations ensue.

Your friend,

Bill Roberts

Nov 30, 2014 12:31 AM #15
Rainmaker
3,262,324
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

George what a great Thought Provoking post, now we will be tuned in to see if you stand by  your predictions or change and keep in mind it is OK to change your mind that is what politicians do everyday and deny that they changed their minds:)), Endre

Dec 01, 2014 09:28 AM #16
Rainmaker
1,519,142
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

George, I personally don't think there will be an increase in home buying in result but we shall see. 

Dec 01, 2014 11:00 AM #17
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