February 06, 2006

Citibank "recruiting" illegal aliens for home loans

Hello, Democrats! You want to talk about corruption? How about talking about a form of corruption that will actually resonate with most Americans?

From "Home-buying program has cash, controversy. Undocumented residents being recruited for loans":

ACORN members, advocates on housing issues for low-and moderate-income people and Citibank have quietly recruited applicants in the county for more than a year...

But the market is vast and the level of interest in the program is high, especially since the loans typically offer below-market interest rates, down-payment assistance and require no mortgage insurance.

...Only two tax-ID mortgages have been processed locally, but about 10 local Citibank loans to undocumented immigrants may soon be finalized with the help of ACORN, the Association of Community Organizations for Reform Now. The nonprofit organization receives much of its funding from the Department of Housing and Urban Development.

...Wells Fargo recently seized on the market, joining Citibank as the only nationwide banks offering tax-ID loans. Wells Fargo started its pilot tax-ID loan program in Los Angeles and Orange counties in December.

Chuck Lemoine, a Wells Fargo senior vice president, said providing tax-ID loans is legal and that reaching out “is not only the right thing to do, it's good business.”

...ACORN Housing officials disclosed [the identity of the story's illegal alien victim] to The San Diego Union-Tribune on the condition her full name not be used. Six years ago, Estela asked an American friend to help her buy a home. She paid the costs, his name was on the loan and title. But a tax lien frightened her friend, who transferred the title to Estela. When the mortgage company found out she was an illegal immigrant, it demanded full payment.

Estela thought she would have to sell her three-bedroom home or lose it. That is, until she heard about the tax-ID loan program. In October, Estela signed the final documents for a new mortgage issued by Citibank.

The local tax-ID program has kept a low profile – no Citibank or ACORN-issued news releases – because of the anti-immigrant backlash that the overall program has drawn. Citibank has processed 72 tax-ID loans nationally since October 2004, half in California...

..."We're seriously looking at getting these banks charged with aiding and abetting someone who's a criminal," said William Gheen, president of the national group Americans for Legal Immigration. "Illegal aliens are criminals."

It goes on quite a bit, but here's what you can do about it:
1. If you do business with Citibank, stop. And, make sure and send them a letter telling them exactly why.
2. Contact your representatives and tell them to close the loophole - or intentional feature - that allows illegal aliens to get these loans.
3. At the least, tell your representatives to stop HUD from funding a far-left organization like ACORN.

Posted to Immigration at February 6, 2006 08:16 PM

Comments

The paper today had an article on the non-profit group that produces studies on the "Informal economy" of a region--IOW, the cash economoy of the illegal immigrants--in order to attract businesses to their area.

article

Posted by: Pat at February 7, 2006 09:09 AM

We are, of course, talking about income tax evasion on a massive scale. Mainly by the employers because the illegals probably(?)have incomes too low for tax liability for the most part. But they still breaking by the law if they fail to report any income from any source. We are quickly on our way to becoming a country like Mexico, where the rule of law exists only on paper.

Posted by: perroazul del norte at February 8, 2006 09:40 AM

Hadn't thought about the Income Tax angle. Good spot on that one!

OK, I could write a book on this, but will try to be brief. First, dear Estrela has been here 13 YEARS and has not bothered to become a citizen. Interesting.

More importantly, she and her "American friend" may have committed criminal fraud in the manner with which this house was acquired for her. There is absolutely no mention that this mortgage was obtained under what might almost be called a scam.

What blows my mind is that Estrela doesn't pay her taxes because she didn't get any tax bills for two years. Even if her taxes were included in the mortgage payment, if the lender doesn't pay taxes for even one quarter, the tax office send the homeowner a letter stating this and asking the owner to pay the amount due (I know because it happened to us). I find it hard to a) believe this to be what happened to Estrela in this case and b) have absolutely no sympathy whatsoever for someone who deliberately or through ignorance doesn't look into this matter.

These banks should be worried. What they are doing is ILLEGAL. But don't hold your breath thinking that something will be done.

BTW, must be nice to own a home worth $525,000 on a maid's salary. If things were so bad she could have sold the home and easily paid it off while pocketing a huge profit.

About ACORN--don't even get me started.

Posted by: Minerva at March 16, 2006 11:54 AM