Big banks’ loan push: Illegal immigrants

NEW YORK – May 4, 2007 – Big banks are now following the lead of community banks in offering mortgages to illegal immigrants who lack Social Security numbers and traditional credit histories, instead allowing the use of Internal Revenue Service Tax Identification Numbers and employment histories.

Loan programs from J.P. Morgan Chase & Co., Citigroup Inc., Wells Fargo & Co. and Fifth Third Bancorp are in the works; and a secondary market to sell and trade these mortgages is being created by Deutsche Bank AG in conjunction with the Hispanic National Mortgage Association.

National Association of Hispanic Real Estate Professionals President Timothy Sandos says the estimated 375,000 undocumented immigrant households could provide $85 billion or more in originations, adding that defaults are less likely to be a problem with these borrowers. According to Sandos, “Once they get a piece of the American dream, they will do any and everything to make sure that bill is taken care of because it is the only asset they’ve got.

Source: Wall Street Journal (05/03/07) P. C1; Sidel, Robin


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