Tags: California | Banks | Cashing | Illegals

California Banks Cashing in on Illegals

Tuesday, 09 August 2005 12:00 AM

But nearly a decade ago, the IRS began giving out Individual Tax Identification Numbers (ITINs) so that people without Social Security numbers could pay taxes.

Now lending institutions are increasingly willing – even eager – to grant loans to illegal aliens who have an ITIN if they can show that they have been in the country, worked and paid taxes for at least two years.

Advocates of tighter immigration controls oppose the lending programs, saying they encourage other illegal immigrants to cross the border, the Los Angeles Times reports.

"They have no right to own property in the United States because they have no right to be here in the first place," said Diana Hull, president of Californians for Population Stabilization.

Actually, the U.S. does not restrict foreign citizens from buying real estate in this country.

Lenders have a huge incentive to participate in the loan programs: tens of thousands of potential customers who could take out millions of dollars in mortgages.

Citibank has been offering loans to illegal immigrants in California under a pilot program since September, according to the Times.

Some banks are reluctant to lend money to illegals, fearing they could be deported and therefore default on their mortgages.

On the other hand, one of the nation's chief banking regulators, the Federal Deposit Insurance Corp., has been encouraging banks to reach out to the Hispanic population – both documented and undocumented. The loan programs based on the ITINs are one way to do that.

But as NewsMax.com reported recently, Wisconsin state Sen. Glenn Grothman has introduced a bill reining in the lending programs that cater to illegals, saying it's wrong that the "government sets up a program specifically designed to benefit people who have chosen to ignore immigration laws."

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But nearly a decade ago, the IRS began giving out Individual Tax Identification Numbers (ITINs) so that people without Social Security numbers could pay taxes. Now lending institutions are increasingly willing - even eager - to grant loans to illegal aliens who have an...
California,Banks,Cashing,Illegals
293
2005-00-09
Tuesday, 09 August 2005 12:00 AM
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