Immigration Contributing to Economic Crisis, Experts Say

Immigration Contributing to Economic Crisis, Experts Say

With American financial markets facing severe crises meriting intervention from the federal government, several experts have recently argued that granting subprime mortgages to immigrants - both legal and illegal - have played a role in bringing about the current economic decline. During “the boom years,” many immigrants took out high-interest fixed-rate loans or subprime mortgages with a low entry rate that later rose sharply in order to buy homes in the United States that they could barely afford. (Reuters, January 30, 3008)

The National Council of La Raza (NCLR) pointed out in April of last year that recent immigrants often turn to subprime lenders for several reasons. (USA Today, April 25, 2007) According to NCLR, 35% of Hispanic families do not have checking accounts. Furthermore, recent immigrants typically do not have credit histories and are more likely to have undocumented income. This in turn causes immigrants to seek out lenders who do not require income verification. Additionally, subprime lenders have been supported by politicians and community organizations wishing to promote minority homeownership. The subprime crisis led NCLR last year to call for a moratorium on subprime home foreclosures. (Id.)

Subprime loans have been instrumental in bringing about a recent fourfold increase in home foreclosures in Barnstable County, Massachusetts. (Cape Cod Online, July 3, 2007) Pam Parker, a mortgage prevention counselor at the Housing Assistance Corporation in Barnstable County, observed that many immigrants had taken these loans “because they don’t know our language and they don’t know our culture.” (Id.) In 15 San Diego County, California zip codes - where home values have fallen as much as 40% - roughly 45% of home loans granted in 2005 and 2006 were subprime. (The San Diego Union-Tribune, July 20, 2008) According to Gabe del Rio, vice president of lending and homeownership at San Diego-based Community HousingWorks, many of the individuals who come to his agency for financial counseling are recent immigrants who spoke little English and did not understand the terms of their subprime loans. (Id.)

http://oneoldvet.com/?p=8361

Originally Posted by Texanne

Ovr: Someone has finally realized that immigration policy is an ISSUE. On the presidential forum there is a thread about immigration. You should repeat your post to that thread since it directly speaks to the impact of illegal immigration on our financial crisis.

All done!!!

Originally Posted by OvrAndOvrAgn

Immigration Contributing to Economic Crisis, Experts Say

With American financial markets facing severe crises meriting intervention from the federal government, several experts have recently argued that granting subprime mortgages to immigrants - both legal and illegal - have played a role in bringing about the current economic decline. During “the boom years,” many immigrants took out high-interest fixed-rate loans or subprime mortgages with a low entry rate that later rose sharply in order to buy homes in the United States that they could barely afford. (Reuters, January 30, 3008)

The National Council of La Raza (NCLR) pointed out in April of last year that recent immigrants often turn to subprime lenders for several reasons. (USA Today, April 25, 2007) According to NCLR, 35% of Hispanic families do not have checking accounts. Furthermore, recent immigrants typically do not have credit histories and are more likely to have undocumented income. This in turn causes immigrants to seek out lenders who do not require income verification. Additionally, subprime lenders have been supported by politicians and community organizations wishing to promote minority homeownership. The subprime crisis led NCLR last year to call for a moratorium on subprime home foreclosures. (Id.)

Subprime loans have been instrumental in bringing about a recent fourfold increase in home foreclosures in Barnstable County, Massachusetts. (Cape Cod Online, July 3, 2007) Pam Parker, a mortgage prevention counselor at the Housing Assistance Corporation in Barnstable County, observed that many immigrants had taken these loans “because they don’t know our language and they don’t know our culture.” (Id.) In 15 San Diego County, California zip codes - where home values have fallen as much as 40% - roughly 45% of home loans granted in 2005 and 2006 were subprime. (The San Diego Union-Tribune, July 20, 2008) According to Gabe del Rio, vice president of lending and homeownership at San Diego-based Community HousingWorks, many of the individuals who come to his agency for financial counseling are recent immigrants who spoke little English and did not understand the terms of their subprime loans. (Id.)

http://oneoldvet.com/?p=8361

Looks like your posting from a blog there Ovr! gasp!

[Smoof]

Around 5 every morning, Jorge Narbaez-Lopez, 25, and Manuel Lopez-Lopez, 22, make their way from their homes in Freehold to the muster zone on Throckmorton Street to wait for work.


They post their names on the list used to keep track of each day laborer's arrival time — the first one there gets the first shot at a job.

But after sign-in, the waiting begins. The men stand near the side of the road or sit in chairs, with their hands stuffed in their pockets and shoulders hunched, bracing themselves against the early morning chill.

Job prospects are bad these days, they said. They go to the muster zone seven days a week, but often work only one or two. They wait for work until 10 a.m. each day, hoping for any sort employment — construction, landscaping, painting.

Like countless other immigrants living in the United States, their incomes have decreased, and a recent study also showed that Mexicans living here are sending less money to their homeland, a drop that at least in part is attributed to U.S. economic woes.

http://www.mycentraljersey.com/artic...STATE/81005006

One good thing may come from this:

Locally, anecdotal evidence also indicates that some day laborers are pretty certain they will return to their homelands later this year because there is no work here, he said.

Originally Posted by lita456

Looks like your posting from a blog there Ovr! gasp!

Looks like you dont know what you are talking about again lita. If you had taken the time to look at what One Old Vet has on his web site you would see that he puts all new reports and studies on there and they are all from local newspapers and tv/cable news from around the country and from the Center of Immigration Studies and FAIR (FAIR did the one I posted) One Old Vet puts them all on his web site for people to use and discuss there or for others to use on other message boards like this one. So lita you are wrong again!

[Smoof]

Originally Posted by lita456

Looks like your posting from a blog there Ovr! gasp!

No Lita, you can read about it all over..

Some five million fraudulent home mortgages are in the hands of illegal aliens, according to the U.S. Department of Housing and Urban Development.

It's not known how many of those have contributed to the subprime housing mortgage meltdown, but it has affected every state, including Arizona.

The problem began years ago when banks were forced to give mortgages without confirming social security numbers or borrower identification. As a result, illegal immigrants were able to obtain home mortgages which they could not afford.

One illegal alien was arrested this year in Tucson after allegedly using a stolen social security number to buy two homes and rack up over $780,000 in bad debt.

http://kfyi.com/pages/local_news.htm...rticle=4364653

Originally Posted by Smoof

No Lita, you can read about it all over..

Some five million fraudulent home mortgages are in the hands of illegal aliens, according to the U.S. Department of Housing and Urban Development.

It's not known how many of those have contributed to the subprime housing mortgage meltdown, but it has affected every state, including Arizona.

The problem began years ago when banks were forced to give mortgages without confirming social security numbers or borrower identification. As a result, illegal immigrants were able to obtain home mortgages which they could not afford.

One illegal alien was arrested this year in Tucson after allegedly using a stolen social security number to buy two homes and rack up over $780,000 in bad debt.

http://kfyi.com/pages/local_news.htm...rticle=4364653

And this is somehow illegal immigrants fault?

[Rangerx1]

Originally Posted by lita456

And this is somehow illegal immigrants fault?

"One illegal alien was arrested this year in Tucson after allegedly using a stolen social security number to buy two homes and rack up over $780,000 in bad debt."

I'd call that his fault. Or was he just looking for a better life?

Originally Posted by lita456

And this is somehow illegal immigrants fault?

Are you kidding me? They knowingly broke the law by entering this country illegally and then knowingly broke the law again by using SS# that they knew was not theirs to use, so ummmm yeah it is their fault but once again the American citizens are the ones who are paying for the laws they broke.

[CookieCutter]

Originally Posted by lita456

And this is somehow illegal immigrants fault?

In a single word? Yes. The longer answer is: Yes, it is the illegal's fault. They broke the law just be being here to apply for the loan in the first place.

And who gave them the loans?

This part I luv "banks were forced to give them the loans" - yah ok. I'm sure the illegal immigrant held a gun to their head, got the loan, bank never called police so they lived pretty nicely for awhile right?

God, I'm gonna

JMOO

[Smoof]

Originally Posted by lita456

And who gave them the loans?

This part I luv "banks were forced to give them the loans" - yah ok. I'm sure the illegal immigrant held a gun to their head, got the loan, bank never called police so they lived pretty nicely for awhile right?

God, I'm gonna

JMOO

Look to Obama and organizations like ACORN for the answer to that.

Why would groups like ACORN, who according to Stanley Kurtz’s “O Dangerous Pals” undermined “the US economy by pushing the banking system into a sinkhole of bad loans…. by forcing banks to make hundreds of millions of dollars in “subprime” loans to often un-creditworthy poor and minority customers…” support this legislation? Perhaps because it provides Chapter 13 Bankruptcy protections to homeowners who didn’t have the means to buy homes, and it protects people who put those borrowers into these high-risk mortgages.

http://canadafreepress.com/index.php/article/5548

Originally Posted by Texanne

First of all...do not faint. I agree with you.

Too late.........someone grab the smelling salt.....

LOL - I don't think that will ever happen again.......

CNSNews.com) – Internal Revenue Service rules have opened up a back-door through which illegal immigrants can obtain an Individual Taxpayer Information Number (ITIN), which in turn helps them enter the U.S. credit market.

The IRS uses ITINs to process tax payments owed by people who are not eligible for a Social Security Number. It is issued regardless of immigration status to people living both inside and outside the country.

Although the IRS states explicitly that ITINs are not to be used for any purpose other than tax administration, banks across the country are accepting ITINs to open new accounts and extend lines of credit to customers who are not eligible for a Social Security Number.

http://oneoldvet.com/?p=8507

Originally Posted by OvrAndOvrAgn

Are you kidding me? They knowingly broke the law by entering this country illegally and then knowingly broke the law again by using SS# that they knew was not theirs to use, so ummmm yeah it is their fault but once again the American citizens are the ones who are paying for the laws they broke.

Who gave them the money? O. Those Smart Banks we have in the US these days.
Blame the lenders, not the immigrants. We can't stand at the border saying "Shhhh, sneak in and come work for me...." and then blame them when our system takes advantage of them.
Let's face it, first off, this is a tiny part of the mtg problem.
Second, when you factor in the vacuum which will occur in the workforce once the babyboomers retire, this is a viable group of people. We haven't made enough kids to do the jobs we will leave behind.
A much larger suck on our system has been our inability and unwillingness to grow new careers these past 8 years. All we've done is live on our credit cards and now we're in hock for 10 trillion.
We can't afford to do anything with any immigrant other than to just welcome them and hope they aren't as lazy and complacent as we have been.

Originally Posted by GardenGirl

Who gave them the money? O. Those Smart Banks we have in the US these days.
Blame the lenders, not the immigrants. We can't stand at the border saying "Shhhh, sneak in and come work for me...." and then blame them when our system takes advantage of them.
Let's face it, first off, this is a tiny part of the mtg problem.
Second, when you factor in the vacuum which will occur in the workforce once the babyboomers retire, this is a viable group of people. We haven't made enough kids to do the jobs we will leave behind.
A much larger suck on our system has been our inability and unwillingness to grow new careers these past 8 years. All we've done is live on our credit cards and now we're in hock for 10 trillion.
We can't afford to do anything with any immigrant other than to just welcome them and hope they aren't as lazy and complacent as we have been.

Our government are the ones who put our country in debt. It is to bad that you look at your fellow Americans in such a low life kind of way. There are more illegal immigrants and their anchor babies sucking our welfare system dry than there are American citizens. There are more unemployed American citizens and teenagers because of the illegal immigrants taking the jobs that Americans were doing.
In my opinion people who think like you are just as much a part of the problem as the ones who have entered this country illegally. You some how think that this country can not survive without illegal immigrants and that we Americans are just lazy. Maybe you are a lazy American but that does not mean the rest of us are. Most Americans have worked hard and many at more than one job just to make ends meet and be able to make that house payment on their dream home that they are raising their children in only to lose that home because of bad loans or because they have lost their job to someone illegally in this country who is willing to work for less. We need to make sure that our children do not have to deal with this same problem when they enter the work force and that wont be easy to do with people who think like you.

[momof6]

Obama wants to give illegals drivers licence. How fair and dangerous is that?

Originally Posted by herlock h.

I don't believe that's true. Do you have a link?

Herlock

Newser) – The National Republican Trust PAC is airing a dramatic new ad attacking Barack Obama for supporting drivers licenses for illegal immigrants, Ben Smith reports in Politico. It brings back an old national-security criticism of the Democrat, Smith writes, in “the most cutting, over-the-top, way available”: images of the 9/11 terrorists fade to one of the World Trade Center, then one of Obama.

The Trust claims to be airing the spot in a “serious” buy in Ohio, and is planning to extend it to other states, though didn’t have immediate figures. Smith notes that a former adviser to Sen. Hillary Clinton thought the issue a “devastating” one during the Democratic primary campaign.

http://oneoldvet.com/