Saturday, September 27, 2008

illegal immigration and financial crisis

Congressman Tom Tancredo sent a letter to his congressional colleagues today about the effect illegal aliens may be having on the mortgage crisis. Tancredo wrote:
I sent a letter to the Secretary of HUD a year ago about this very concern. I also pressed the agency to disclose the extent to which this type of fraud is contributing to volatility in the mortgage markets. I believe this kind of fraud has contributed to the tumult we are seeing in the headlines daily.

I have seen this ugly issue up close, as a Colorado-based mortgage fraud ring in which realtors, loan officers, and sales agents were indicted and arrested for obtaining federally-backed loans for some 250 unqualified buyers by manufacturing
false financial information, fraudulent identities, and bogus citizenship documentation. All of the 191 houses involved were purchased with HUD-guaranteed loans. According to one expert, banks in Colorado alone lose upwards of $75 million per year to fraud – so I can only imagine what the numbers are like nationally. (Rep. Tom Tancredo)

2 comments:

Kevin said...

The problem is not illegal immigrants... it's that we've created a loan system in which the government backs high-risk loans so there is incentive for banks and loan-agents to create as many loans as possible because they get their cut up front.

The problem is further exacerbated by the fact that our corrupt inept government cannot create a single workable immigration policy that enables hard-working honest immigrants to come to America and try to better themselves by contributing to the economy. To learn about American values... the result is we have an entire sub-class of people, millions of illegal immigrants who just want to work and make things better for themselves and their families. Because we enable this, we can't distinguish between dangerous immigrants who don't want us to know they're here and legitimate immigrants who just want work and opportunity.

I have a friend whose brother is a lawyer in Mexico. He came to the United States for a summer to work and buy a computer... he was able to buy a computer so he could be a lawyer back in Mexico. Because our immigration policy is so absolutely screwed up he came here illegally worked, and then went home. He worked day-labor. Why in the world would we not want to encourage trained people to come to the United States to contribute to our economy? Had this young man been able to come here legally, and had the opportunity to work in a more professional environment, with an ability for our government to properly tax and recover some of his earnings to offset the cost of having a guest worker... we'd have better work, tax revenue, and an opportunity to build links and relationships all over the world which means advantage and opportunity to sell American products and services around the globe further enhancing our economy and world influence.

But our government is too inept to actually do anything about our system... they can't solve problems... the just move from issues to issue leaving a mess.

Robert said...

Kevin get your head out of the sand or wherever else it might be. If someone breaks our law to come here then lies to get a mortgage he is responsible. I agree the system is broken but that fact isn't illegal but stupid.

The issue of a large under class that are illegal aliens, no matter why they come is a legal matter and could have been prevent with a pro active policy to enforce our laws. I laugh when someone says our immigration policy is broken, it isn't' our enforcement activities are the problem. As for the mexican lawyer who broke laws for his on desires does that surprise anyone after all he is a lawyer!