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Home Loans for Illegal Aliens?

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From Ravings of John C. A. Bambenek

It has become recent news that some banks have started to make home loans to illegal aliens. They live here, work here, and want homes. On one hand it makes sense, you have an untapped market of consumers. On the other hand there is one big risk, deportation. Some of the big banks recognize this which has left these kinds of loans in the hands of smaller banks.

With legal residents, you have some degree of assurance that they’ll be around in the long-term. Sure, something might happen, but odds are you’ll be able to get something out of them if push comes to shove, at least some of the time. With illegal aliens, if they get deported the chances of recouping any losses on that mortgage leave the country with them.

The economic problem comes in that those risks need to be balanced with higher costs to cover those risks. The only unpredictable feature is if there is a push to start enforcing immigration law. DeLay and Tarcedo have made illegal immigration campaign issues and it won’t take many terrorist attacks on US soil to convince people we need to secure the borders. All the sudden those loans become losses. If the banks price the loans appropriately the risk may be mitigated, if they don’t it could be a problem.

Bad loans have a high coincidence level with depressions. When banks loss lots of money very bad economic things happen. Because this is an untapped and “shady” market to get into, odds are those banks aren’t taking the appropriate steps. Combine that with other factors that may come in to play later (housing bubble burst, economic downturn, consumers starting to default on their already high debt loads, all those interest-only home loans coming due) and it could be a recipe for a financial nightmare.

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About John Bambenek

John Bambenek is a political activist and computer security expert. He has his own company Bambenek Consulting in Champaign, IL that specializes in digital forensics and computer security investigations.
  • Albanesse

    I know of people that were given loans for homes that where here illegally and hve been since deported. Not a good thing on all fronts. I found it shocking that if they are willing to pay a little higher interest they were given a loan no problem.

  • billy

    whats next, illegal aliens voting? oh yeah we are already working on that one.

  • Mel

    Clearly it should be against federal law to do any kind of business with illegal aliens. It’s a simple matter of abetting criminals. At what point does a country that institutionally undermines respect for laws and borders cease to be a country at all?

  • http://wisdomandmurder.blogspot.com Lisa McKay

    If the federal government has no problem collecting income taxes from illegal aliens (which you’ll find it does if you read the article that John links to), then it should have no problem with people doing other kinds of business with them.

  • blNY

    should not be allowed, but neither should promoting the diabetes, and heart disease causing foods. The goverment doesn’t discriminate when it comes to milking someone dry.

  • http://victorplenty.blogspot.com Victor Plenty

    It should be against federal law to do any business of any kind at all with anyone who has driven a motor vehicle faster than 55 miles per hour.

    Ever. Even once. It doesn’t matter whether they’ve ever been given a ticket for it, either. Crime is crime.

    If you sell food or clothing or shelter to one of these illegal speeders, you undermine the rule of law and destroy the very foundations of our country.

  • John Martin

    Those who come here illegal usually do not qualify for the loans to begin with as with the recent federal bust in Denver has shown. The Feds estimate their may be as many as 8,000 homes in Colorado that are in default through falsified loan applications issued by Hispanic morgage brokers using inflated qualifiers and fake identification documents. According to the Feds, its just the tip of the iceberg for the entire country.

  • Bud

    The United States Government should enforce the laws that are on the books now. The President took an oath, twice, to uphold the laws of the United States, HA!!

    ENFORCEMENT FIRST – PROTECT OUR BORDERS

  • Nancy

    This is the age-old story not of banks dealing w/illegals, but of banks getting greedy & figuring they can extend bad credit to shaky customers, but that’s OK because if they lose money the government/taxpayers will bail them out & protect them from their own bad judgement anyway – just like it does with banks’ greed & bad judgement on extending credit cards etc. to all kinds of marginal people. Why not? The banks don’t lose anything by doing so, the taxpayers do, thanks to congress.

    As for illegals: zero tolerance. They should be ‘entitled’ to an ounce of lead & a $20 bounty per illegal scalp.

  • http://victorplenty.blogspot.com Victor Plenty

    Apply it retroactively, Nancy. A $20 scalp bounty on anyone who illegally immigrated to this country since 1492, and all their descendants.

    Otherwise you’re a completely irrational deranged sociopath.

  • Nancy

    No, that would only be since immigration laws went on the books. And I’m for enforcement of laws; otherwise don’t bother to have them.

  • http://victorplenty.blogspot.com Victor Plenty

    You’re not “for enforcement of laws.” You’re for hate and murder and xenophobia.

  • Nancy

    Not so; I think LEGAL immigrants are great. Illegals – not so. And I don’t consider only Hispanics w/’illegals’ as you seem to do; or are you unaware that the majority of violent crime lately is being done by criminal illegals from all around the world – especially some extremely nasty people seeping in as ‘refugees’ from China?

  • http://victorplenty.blogspot.com Victor Plenty

    A $20 scalp bounty is hate, murder, and xenophobia. It is not enforcement of any law, and never could be enforcement of any law under a sane constitution.

  • Nancy

    It’s what we’re doing in Iraq w/insurgents, except we aren’t paying a bounty. If things keep on the way they’re going, w/gangs & organized crime from world-wide crawling in thru the cracks here, we may be doing the same sometime soon.

  • Columba

    Undocumented people are a benefit to our country and their money is as good as ours. When we consider that there a over 10 million undocumented people from all over the world in this country today, the majority of whom work and pay taxes and who need homes and other basic necessities of life, it makes sense to open the doors of the very instituitons that benefit from their presence in this country. Undocumented people are consumers just like the rest of us, if they buy a house they will probably buy furniture, appliances, services and other products. Thats business! Banks are finally doing what they are supposed to do, spread the wealth.

  • http://jcb.pentex-net.com John Bambenek

    They aren’t undocumented, they are illegal aliens. Kindly quit changing the terminology to try to make it legitimate.

    They are subject to deportation if caught, giving loans to people who can be kicked out of the country at a moments notice is not a good idea.

  • http://www.clandestinegeek.com Mike

    They are not “undocumented.” They are not “legal” vs. “illegal.”

    They are aliens, in the true sense of the word, meaning: foreign.

    The possession of papers – or lack thereof – has nothing whatever to do with the fact that the United States is undergoing a drastic demographic shift.

    All the trends point in the same direction: White people becoming marginalized, minoritized (is that a word?), and disenfranchised – powerless in the country OUR forefathers conquered and built.

    THAT is the problem. I’m sick of leftist twaddleheads who think that EVERY piece of Third World scum deserves to live in my country. And, I’m sick to death of so-called conservatives who back-pedal and run away from the issue of race.

    This whole thing is about race. Either Whites take a stand – NOW – or we lose our country. There is no third option. I don’t know if I can make that any more clear.