Embracing aliens: Wells Fargo offering home loans to illegals

[Hilarious Clinton 452]

Well Fargo & Co. has become the first major California real estate lender to directly offer home loans to illegal immigrants and foreign nationals as a result of its new pilot program in Los Angeles and Orange counties.

The concept is gaining traction nationally, with a handful of U.S. banks eagerly selling the American dream of home ownership to an untapped market of between 10 million to 12 million undocumented workers.

Some undocumented workers and foreign nationals pay taxes in the United States but are not eligible, because of their legal status, to receive Social Security numbers, which are required for home loan applications. But Wells Fargo will begin accepting a different form of identification--a nine-digit Income Tax Identification Number, known as an ITIN--to allow these potential homebuyers to obtain home loans. The Internal Revenue Service issues ITINs to individuals who do not have a Social Security card, including illegal immigrants, for tax-paying purposes.

"These loans are highly controversial," said David Barr, a spokesman for the Federal Deposit Insurance Corp., which supervises the nation's banks. "Anything dealing with ITINs and immigration are two hot-button issues. But banks are offering these products."

Barr said banks have found "alternative ways" to allow undocumented immigrants and foreign nationals to apply for home loans. No government agency keeps tabs on how many banks are offering such products.

The potential for criticism hasn't dissuaded Wells Fargo.

"Law enforcement initially approached our company about these cards because the cash economy is dangerous," said Shelley Freeman, Wells Fargo's regional president in Los Angeles. "We're selling mortgages to taxpayers. We leave the government's job to the government." Wells Fargo faced similar heat five years ago, when it began accepting "matricula" cards--government ID cards from Mexico, Guatemala and Venezuela--to open checking and savings accounts. A Wells Fargo spokesman called that program an "enormous success," citing 700,000 new accounts.

Wells Fargo further defends the home loan offers by citing the U.S. Patriot Act, which recognizes ITINs as well as matricula cards as acceptable forms of identification. Banks are not required to ask the residency status of customers.

ITIN mortgages received some legitimacy last year when the Milwaukee-based Mortgage Guaranty Insurance Corp., the nation's largest provider of private mortgage insurance, created what it calls "Building a Life in America" program--mortgage insurance for first-generation immigrants, many of whom are in this country illegally, but want to own a home.

"It's a very niche market," aid Geoffrey Cooper, MGIC's director of emerging markets. "You do a loan here, a loan there. We haven't felt any backlash."

But in a state with ongoing and emotional immigration issues, the program has plenty of critics. Rep. Dana Rohrabaher, (R-Huntington Beach), calls the loan program bad business.

"People who are violating the law, whether they're illegal aliens or bank robbers, shouldn't be treated as any other customer," he said in a statement. "It is not good business for Wells Fargo or for any other company to do business with lawbreakers."

To qualify for Wells Fargo's Celebrate HomeSM program, a borrower must have paid their taxes for at least two years using an ITIN number, provide proof of residency for two years, and have had a bank account for at least six months. The program offers 90 percent financing on fixed and adjustable-rate mortgages for up to $600,000.

http://findarticles.com/p/articles/mi_m507...28/ai_n16058693

[w¡n9Nµ7 §£@¥€r 123]

It's the Federal Governments responsibility to make sure the undocumented do not gain entry into this country. Once they have, it is still the Federal Governments responsibility to make sure they are detected and returned back to their home countries. Given that the Federal Government has abdicated its responsibility, why do we expect private citizens and private corporations to step up for them?

[Mirorgate 0]

It's the Federal Governments responsibility to make sure the undocumented do not gain entry into this country. Once they have, it is still the Federal Governments responsibility to make sure they are detected and returned back to their home countries. Given that the Federal Government has abdicated its responsibility, why do we expect private citizens and private corporations to step up for them?

Beaten to the punchline again.

Seriously... since the US Gov'ment prolly (as in almost gauranteed) amnesty... they just gettin in good on the inside track.

[pedroh 21]

next...

chuck e. cheese caters parties for illegal immigrants...

same ole' same ole'...

[Mirorgate 0]

next...

chuck e. cheese caters parties for illegal immigrants...

same ole' same ole'...

They do. Again thats not realy news though is it?

[pedroh 21]

ur right, this aint new.. at all

again, cell phone companies like Sprint have been accepting ITIN's, passports with US paystubs or bills, Work ID's to sell a cellphone since like forever, SS#'s have never been a must, and it's not illegal to get a cellphone without one..

so this thing of offering certain services without SS#'s or with just ITIN's.. ain't new at all..

Edited February 16, 2007 by pedroh

[Caladan 19]

Watch the spin in these articles, because it's frankly bothering me that all someone has to do is put up a headline that says "this helps illegals!!!11!!" and everyone piles on like a bunch of mindless drones.

How many illegals do you think have legitimate ITINs? Is it a high percentage of illegal immigrants? Is it a high percentage of the total number of ITINs? And if they do, isn't the question to ask whether the federal government should allow ITINs to go to undocumented workers, rather than whether a private institution wants to take a chance on someone who demonstrates an income, payment of taxes, two years' residency and a financial history?

Careful that you don't allow yourself to be manipulated by any two-bit headline writer. New Haven puts down cinders when it snows -- TO PREVENT ILLEGALS FROM SLIPPING!!!!

"damn illegals should slip in the ice."

"in my day we'd just send them back."

"i have a big ####### on ice lol"

*groan*

[pedroh 21]

yea.. illegals with a credit card.. zomg, they're gonna collapse the economy...

[MissStacey 1]

I wish I was an Illegal Alien.

Try to do things the proper way, and you get sh#t on.

Edited February 16, 2007 by Stacey33

[JayJay 4]

And there was me thinking this thread was all about hugging people from Mars. Silly me - I need to stop wathcing th eX-Files so much...

*goes away and puts in "Close Encounters of the Third Kind" while making a cup of tea*

[Heracles 417]

What the heck are those jackass Senators doing about this?

As I thought, Democrats would come into power with a bunch of words and promises yet not actually do anything productive.

[Hilarious Clinton 452]

I wish I was an Illegal Alien.

Try to do things the proper way, and you get sh#t on.

And pay a lot more in taxes doing it the 'right' way. so sad.

[Heracles 417]

Seriously what is next... I do not blame the illegal immigrants though. It is the people in charge who are to blame..

In the States it seems that unless there is some sort of big tragedy and the politicians can look like they saved the day, they don't not give a ###### about an issue... It was the same story with regards to being pro-active "prior" to 9/11..

[JoeMama 0]

I'm glad I don't do my banking with Wells Fargo or Bank of America. If my current bank moves this direction, I'll be pulling my accounts there and start stashing my cash somewhere else.

[peejay 327]

It's the Federal Governments responsibility to make sure the undocumented do not gain entry into this country. Once they have, it is still the Federal Governments responsibility to make sure they are detected and returned back to their home countries. Given that the Federal Government has abdicated its responsibility, why do we expect private citizens and private corporations to step up for them?

Beaten to the punchline again.

Seriously... since the US Gov'ment prolly (as in almost gauranteed) amnesty... they just gettin in good on the inside track.

I hope their little bet doesn't pay off. It would be real sweet if their new customer(s) got deported and Wells Fargo got stuck with foreclosure(s). That would be a reward the illegal aliens and the banks richly deserve.