Real quick post. It wasn’t that long ago that I blogged about Utah’s number one ranking for mortgage fraud and noted the role illegal immigration plays (see also my posts on identity theft). Obviously, illegal immigration not the driving or a major force in such fraud, nor in the current financial situaltion we find ourselves in, but illegal immigration isn’t helping either (I’m only posting snippets, detail is available at the link):
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 jumped in to guarantee home loans to illegal immigrants. The Washington Post noted, almost as an afterthought in a 2005 report: “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.’”
In addition, fraudsters have engaged in massive house-flipping rings using illegal aliens as straw buyers…
…It’s the tip of the iceberg. Thanks to lax Bush administration-approved policies allowing illegal aliens to use “matricula consular cards” and taxpayer identification numbers to open bank accounts, more forms of mortgage fraud have burgeoned. Moneylenders still have no access to a verification system to check Social Security numbers before approving loans [emphasis added].
Anyone for letting banks and other lenders use E-Verify, or an equivalent, to prevent loan fraud from anyone using a false identity?