Today's article delved into the bizarre world of taxpayer-funded illegal alien mortgages. If you thought the abuses that led to the recession were bad, this is something else entirely. Taxpayers are on the hook for mortgages for illegal aliens who could be deported.
It’s unknown how many illegal aliens have taken out FHA loans, but some media stories have cited loan officers for whom illegal alien FHA loans represent a significant percentage of their business.
The Trump administration has applied the brakes to this avalanche of taxpayer-insured mortgages to illegal aliens. The Department of Housing and Urban Development (HUD) had begun notifying lenders that the FHA was no longer in the illegal alien mortgage business. The reasons were common sense. DACA illegal aliens, or in media spin, DREAMERs, were not legal residents and weren’t being legalized.
Fannie Mae however is making it clear that it is in the illegal alien mortgage business.
And while the FHA appears to be turning its back on Dreamers, Fannie Mae announced late last week that its policies surrounding DACA borrowers and other non-citizens has not changed, adding that it will back mortgages for Dreamers, as long as certain lending criteria are met.
“We have a longstanding policy on eligibility for non-U.S. citizen borrowers. Fannie Mae purchases and securitizes mortgages to non-citizens who are lawful permanent or non-permanent residents of the United States under the same terms available to U.S. citizens,” the government-sponsored enterprise said in a lender bulletin posted on Friday.
According to Fannie Mae, a borrower is “legally present” in the U.S. if that borrower has a Social Security Number or Individual Taxpayer Identification Number; and has current, verified status, which may be documented by a valid employment authorization document (Dreamers would qualify under with category with C33 status), or other documentation showing immigration status is current (a Green Card, work visa, etc.).
DACA recipients are not legally present in the United States. They are by definition people who have entered this country illegally. And remain here illegally.
Fannie Mae needs a housecleaning.