Sunday, September 28, 2008

More About Illegal Aliens and the Housing Crisis

More About Illegal Aliens and the Housing Crisis

I mentioned previously Michelle Malkin's assertion that illegal aliens are at least a significant part of the subprime mortgage disaster--which is logical. Part of the strategy to empower minorities was to ignore bad or no credit history--and if there is anything that an illegal alien is likely to have, it is no credit history. Remember: they aren't here legally--and many are working under false names and Social Security numbers.

I heard from a realtor who tells me that he can't even hint at asking if someone looking to buy a house is illegal, although his first client volunteered the information that he was illegal. He tells me that the federal government sends around teams pretending to look for houses specifically to make sure that realtors aren't asking about immigration status--and mortgage companies are in a similar situation.

Gee, can anyone see why illegal aliens might be poor credit risks on mortgages?
  • At any time, the federal government might stumble across an illegal alien, and actually deport them. (Okay, the odds are very tiny, but it could still happen.)
  • An employer might have to fire an illegal alien, if the federal government started asking questions.
  • Because illegal aliens are disproportionately poorly paid, it seems very likely that any significant increase in interest rates on adjustable mortgages would make it hard to make the payments.
  • Even Americans whose command of English is perfect managed to get in over their heads because of sleazy mortgage companies, an inability to think six months ahead, and general shortsightedness. Do you suppose having a limited command of English might aggravate these problems?

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