Illegal Alien Mortgage Fraud

Unreported - Illegal Aliens Home Loan Fraud and The Financial Crisis

Thanks to lax Bush administration policies allowing illegal aliens to use "matricula consular cards" and taxpayer-identification numbers to open bank accounts, mortgage fraud has grown. Money-lenders still have no access to a verification system to check Social Security numbers before approving loans.

October 2001, President Bush signs the USA Patriot Act. In section 326(b) is a provision that allows US banks to accept Mexican Matricula Consular cards as valid ID for opening bank accounts. (NOTE: No Mexican banks accept their own government's Matricula Consular card as valid ID to open a bank account because the bearer's identity is virtually untraceable. In contrast, almost all US banks will accept it.) An estimated 9 million Matricula cards have been issued in the US FDIC Regulations on Matricula Cards

U.S. law enforcement officials cite that Matrícula Consular cards are issued by Mexican Consulate without checking the authenticity of the applicant's supporting documentation. In testimony to the Senate Judiciary Committee, the FBI disclosed and reported that the Matrícula Consular card is inherently unreliable and unverifiable as an identification card and is highly vulnerable to fraud, regardless of its security

AS panicked politicians prepare to fork over $1 trillion in taxpayer funding to rescue Wall Street, they've fingered regulation, deregulation, Fannie Mae and Freddie Mac, the Community Reinvestment Act, Jimmy Carter, Bill Clinton, both Bushes, greedy banks, greedy borrowers, greedy short-sellers and minority-home-ownership promoters for blame.

But there's one villain that has slipped notice: how illegal immigration, crime-enabling banks and open-borders Bush policies fueled the mortgage crisis. It's no coincidence that the areas hardest hit by the foreclosure wave - Loudoun County, Va., California's Inland Empire, Stockton and San Joaquin Valley, and Las Vegas and Phoenix - also happen to be some of the nation's largest illegal alien sanctuaries. Half of the mortgages to Hispanics are subprime. A quarter of all those subprime loans are in default and foreclosure.

Regional reports across the country have decried the subprime meltdown's impact on illegal-immigrant "victims." A July report showed that in seven of the 10 metro areas with the highest foreclosure rates, Hispanics were at least one-third of the population; in two of those areas - Merced and Salinas-Monterey, Calif. - Hispanics comprised half the population. The National Council of La Raza and its Development Fund have received millions in federal funds to "counsel" their constituents on obtaining mortgages with little to no money down; the group almost succeeded in attaching a $10 million earmark for itself in one of the housing bills passed this spring.

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 guaranteed home loans to illegal immigrants.

The Washington Post noted in 2005: "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.' "

Fraudsters also have engaged in house-flipping rings using illegal aliens as straw buyers. Among many examples the FBI cites: a conspiracy in Las Vegas involving a former Nevada First Residential Mortgage Company branch manager who directed loan officers and processors in the origination of 233 fraudulent Federal Housing Authority loans valued at over $25 million. The defrauders made and submitted false employment and income documentation for borrowers; most were illegal immigrants from Mexico. To date, the FBI reported, "Fifty-eight loans with a total value of $6.2 million have gone into default, with a loss to the Housing and Urban Development Department of over $1.9 million."

It's the tip of the iceberg. Thanks to lax Bush administration policies allowing illegal aliens to use "matricula consular cards" and taxpayer-identification numbers to open bank accounts, mortgage fraud has grown. Money-lenders still have no access to a verification system to check Social Security numbers before approving loans.

In an interview about rampant illegal-alien home-loan fraud, a spokeswoman for the US General Accounting Office told me five years ago: "Considering the size of Los Angeles, New York, Chicago, Houston and other large cities throughout the United States known to be inundated with illegal aliens, I don't think the federal government is willing to expose this problem for financial reasons as well as for fear of political repercussions."

The chickens are coming home to roost. Law-abiding taxpayers are going to pay for it.
Editorial by Michelle Malkin  - Web Site  MichelleMalkin.com

UndocumenteBorderGuard wrote:
I WAS WRITING THE NEWSPAPERS (IE:PROPAGANDA MACHINES); THE CITY COUNCIL; THE DEPARTMENT OF COMMERCE; LOCAL BROKERS AND STATE REPS... FOR MONTHS.

I STARTED WRITING THEM 5 YEARS AGO WHEN I NOTICED THIRD WORLD TACO BELL WORKING ILLEGAL ALIENS PURCHASING HOUSES IN THE 200-300K RANGE - HOUSES THAT WERE, OBVIOUSLY, WAY BEYOND THEIR MEANS...

THESE PEOPLE WERE TRASHING AND ABANDONING HOUSES IN NEIGHBORHOODS THAT ONCE THRIVED; HOUSES THAT I PERSONALLY HAD WITNESSED, GOOD HARDWORKING, LAW
ABIDING CITIZENS SPEND A LIFETIME WORKING FOR AND PAYING OFF AFTER DECADES OF LABOR.

THESE PEOPLE CAME IN AND DECIMATED THIS AREA IN MONTHS TIME. THEY WOULD TRASH THEM AND THEN WALK AWAY BECAUSE THEY HAD ABSOLUTELY NOTHING IN THEM -
NOT EVEN THEIR CREDIT OR GOOD NAME WAS TIED TO THESE WRITE-OFFS...THEY DIDNT CARE BECAUSE IT WAS AN AMERICANS GOOD NAME THAT WAS STOLEN ALONG WITH THEIR SOCIALSECURITY NUMBER THAT MADE THIS QUARTER MILLION DOLLAR SQUAT AVAILABLE TO STINK UP FOR A YEAR UNTIL THE EVICTION NOTICE CAME FOR NON PAYMENT DEFAULT.

I SAW IT ALL... I SAW THESE HOUSES BEING TOSSED AROUND LIKE LOST TOYS FROM A FORGOTTEN BOARD GAME...

I SENT DOZENS AND DOZENS OF EMAILS ASKING HOW THIS WAS HAPPENING? WHO WAS RESPONSIBLE?

HOW DID THESE THIRD WORLD UNDOCUMENTED ILLEGAL ALIENS WITH NO CREDIT HISTORY WITH NO EDUCATION WITH NO SKILLS WITH NO MONEY -WITH NO ID - GET LOANS FOR $250,000.00 HOUSES, ONE AFTER ANOTHER...HOW DID THIS HAPPEN WHEN NO ONE EVEN KNEW WHO THEY WERE?

HOW ARE THESE SAME PEOPLE FLOODING THE WELLS FARGO BANK IN THE SUPERMARKETS SETTING UP ACCOUNTS AND LOANS WHEN THEY AREN'T EVEN USING THEIR OWN LEGIT IDENTIFICATION? HOW IS THIS HAPPENING?

MY QUESTION TO THE MANY I EMAILED WAS "HOW ARE ILLEGAL ALIENS WITH ZERO CREDIT AND QUESTIONABLE IDENTITY -THAT ARE LITERALLY UNDOCUMENTED - GETTING
A 250 THOUSAND DOLLAR HOME LOAN" NO QUESTIONS ASKED? HOW?

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