April 11, 2009

Subprime and Illegal Aliens

From Dave Gibson's Norfolk Crime Examiner, an interview with an anonymous informant:

Q) What is your background and who have you worked for?

A) I am in the Mortgage Industry and personally audited thousands of sub prime loans while working as a contractor. The last company I worked for was EMC, previously owned by Bear Stearns so I thought I would share the caveat on these loans.

Q) When my wife and I bought our home, we had to provide a mountain of documentation, including federal tax returns. How have the mortgage lenders allowed illegal aliens to enter into a mortgage loan without the proper documents?

A) The Sub Prime underwriting guidelines had special requirements for, what was called, Foreign Nationals….30% down and full credit package including credit references from their country of origin and a valid Visa. To circumvent this requirement, the applications were marked that the borrower was a US citizen then, regardless if the credit profile did not support such a claim, an underwriter was not allowed to question. This along with use of stolen SS# or use of their American born child’s SS# and lax credit requirements that allowed alternative credit, helped cover the ruse. All required documentation was fraudulent and with the large use of a/k/a’s, information was hard to track.

Q) What did management do when it was discovered that a stolen Social Security number was being used by a borrower?

A) It was not uncommon to find a SS# being used by up to 23 other people or a borrower with 27 a/k/a’s. Management would often clear a loan that you tagged as fraudulent so it wouldn’t be shelved.

Q) What was the worst case you have seen?

A) One borrower stole the SS# of a retiree and took out $3.5 million in loans, turned around and did cash-out refi’s, then fled the country. The retiree was left with ruined credit, $3.5 million in loans and trouble with the IRS. Over 50% of the sub primes were for cash-out refi’s. Regardless of the loan criteria used to pull random samplings for audits, the majority of the last names were Hispanic. The loans I audited were primarily in CA, NV, AZ, FL, CO, compare those to the states with the highest number of foreclosures & illegal aliens.

Gibson goes on:

Of course, we all know that, on October 26, 2001, President Bush signed the USA Patriot Act. However, I would wager to say that almost no one knows that contained in section 326(b) of the USA Patriot Act is a provision that allows US banks to accept Mexican Matricula Consular cards as a valid form of ID for opening bank accounts.

It should be noted that while our President and Congress ordered American banks to recognize these Mexican-issued cards, there is not one Mexican bank which accepts their own government’s Matricula Consular card as a valid form of ID, because the bearer’s identity is basically untraceable.

See hear for the Congressional debate on this when attempts to reform this were defeated in 2004 by a joint effort by financial institutions, immigrants’ rights groups, consumer groups, and many others who worked in coalition to defeat, once again, efforts to limit the acceptance of consular ID cards by banks, credit unions, thrifts, and other financial entities.

The following is a list of U.S. banks (both regional and national) and mortgage insurers which are known to offer home loan programs targeted at illegal aliens:

-Bank of America,
-Citigroup
-Deutsche Bank AG
-Fifth Third Bancorp
-Genworth Financial Inc.
-J.P. Morgan Chase
-Liberty Financial
-Mortgage Guarantee Insurance Corp.
-Plaza Bank
-Wachovia-Wells Fargo

My published articles are archived at iSteve.com -- Steve Sailer

30 comments:

Anonymous said...

Steve
I think people like Truth have a point. The activities described in that article are good old fashioned fraud. One could be agnostic, or even hostile, to the whole idea of HBD and still vigorously object to the activities that were described. The participants in these schemes could just as well have been American citizens as illegal aliens. Not all criminals have names like Carlos and Jose - believe it or not, some even have names like Bernie and nifty little titles like "Sir".

Anonymous said...

From adopted Treasury guidelines:

Under the proposed definition, a bank will not necessarily need to establish whether a potential
customer is a U.S. citizen. The bank will have to ask each customer for a U.S. taxpayer
identification number (social security number, employer identification number, or
individual taxpayer identification number). If a customer cannot provide one, the bank
may then accept alternative forms of identification.
For these reasons, the definition is
adopted as proposed.

Toadal said...

In 2005, I decided to close my family's Citibank checking, savings, and credit card accounts once I learned Citibank issued 'liar' mortgage loans to customers having no credit, job history, or legal status. After about two hours of investigation, I found a local credit union whose customer service manager stated in writing they could not grant loans that way. I closed our Citibank accounts and opened accounts at the credit union. It's hard to imagine a situation where we would ever do business with Citibank again.

Anonymous said...

Thank you dearly for providing us with this list:


Bank of America,
-Citigroup
-Deutsche Bank AG
-Fifth Third Bancorp
-Genworth Financial Inc.
-J.P. Morgan Chase
-Liberty Financial
-Mortgage Guarantee Insurance Corp.
-Plaza Bank
-Wachovia-Wells Fargo


Now WE KNOW who not to do business withm, and what banks to PATRIOTICALLY remove our monies from. The "one-third-down-no-questions-asked-loan" was known in the biz as the "drug dealer" loan in my part of the country by loan officers.

CJ said...

OT but a must, must read for Steve and his fans, from News of the World via Drudge:

Obama brother accused of UK sex assault:
Samson denied British visa after incident with teen girl in Berkshire


Includes amusing picture of young B. Obama and one of his 11 half-brothers.

rightsaidfred said...

...turned around and did cash-out refi’s, then fled the country.

One more example of our country being looted.

Anonymous said...

"I think people like Truth have a point. The activities described in that article are good old fashioned fraud. One could be agnostic, or even hostile, to the whole idea of HBD and still vigorously object to the activities that were described."

But why make it easier by an order or magnitude through not enforcing reasonable immigration laws? Or would that be racist?

Anonymous said...

http://en.wikipedia.org/wiki/Family_of_Barack_Obama

Obama has 7 siblings. (In Dreams Obama wrote 2 of his so-called brothers are suspected of not being Sr.'s. Includes that particular gentleman.)

Anonymous said...

"It's hard to imagine a situation where we would ever do business with Citibank again."


I'm still hoping that Citibank folds so that your statement becomes a corollary.

Anonymous said...

"I think people like Truth have a point."

Sure, not all Mestizos were criminals, but the gangsters in WS made it easy for greedy Mexicans to game the system. That "Truth" would ever state anything sensible is not possible. He is a constant nuisance around here.

Big Bill said...

The LA Times has two surprisingly conservative articles about the mortgage scams and the epidemic of bad paper in today's LA Times:

On HUD scams:
http://tinyurl.com/ddd46k

On the epidemic of bad paper:
http://tinyurl.com/ct2zrd

Tanstaafl said...

My previous comment was in response to this post.

Anonymous said...

The participants in these schemes could just as well have been American citizens as illegal aliens.

What moves people to write things which are patently untrue? Our government does not bend over backwards to allow US citizens to break the law.

Captain Jack Aubrey said...

Love the link to the Obama brother story. Thanks for the laugh, CJ.

IS this Gordon Brown's payback for those damn DVDs and all the other slights? Would be funny if that's how the story made it into the news.

Note this line: Mum Kezia, 67, has lived in Bracknell for six years. She married the US president's father Barack Obama Snr in Kenya when she was a teenager.

2009 minus 67 means a birth in 1941 or 1942. Barack Obama's own mother was born in late '42 (she was still 17 when she got knocked up with the future Messiah). He married them both when they were teenagers - meaning about the same time. Of course we all already knew that, but it's nice to be reminded from time to time.

And what is it about these Obama family members not wanting to live in the black paradise of Kenya? His Aunt lives illegally in the US. His half-brother lives in China. One of his dad's other wives lives in Britain. His half-brother is trying to get into Britain.

"I asked what Barack was like as a teenager and he said he was always charismatic and calm."

"Always" - for the 5 minutes he knew him.

My guess is that Samson will soon be granted asylum in the good ole US of A.

Anonymous said...

As much as I dislike the idea of illegals being here, I have a feeling there's more to this than just a bunch of underemployed lawn cutters pulling the same scam in huge numbers. Even if the idea for it could spread by word of mouth--like a bad movie on opening weekend--I get the feeling that it took an awful lot of moxy and incentive to pull this off. I dunno if it's the mob or the cartels or what, but my gut feeling tells me there's more to this than thousands of illiterate drywallers suddenly manipulating the mortgage industry.

Anonymous said...

This blog is one that should seen. Goldman are unhappy to say the least!

www.goldmansachs666.com

Come on people spread that url around. There has only been one MSM reference to it - in the UK Telegraph. The US media are too scared I assume.

David said...

Anonymous said

The participants in these schemes could just as well have been American citizens as illegal aliens.

So after all the evidence of the Community Reinvestment Act, Bush Administration policy, Treasury guidelines, testimony from lenders, etc., etc., you say it was a chance event that the participants were illegals.

None so blind as those who will not see.

If a school had a policy of giving "A"s preferentially to Albanian students, refused to punish any Albanian students for cheating, and stated publicly "our top priority is to advance Albanian students," would you assert that the school's Honor Roll could "just as well" be filled by non-Albanians students as by Albanian students? Particularly in the teeth of the fact that Albanian students were disproportionately represented on the Roll?

File Anonymous under -Political Correctness Makes You Stupid-.

Roger Chaillet said...

Why do we have to pay for our dispossession?

The elites cannot forcibly expel Americans to areas east of the Urals.

So, tens of millions have been brought into this country to do the same thing.

Same difference: dispossession.

Oh yeah, George Bush's pal Rob Allyn said in the Dallas newspaper a few years ago that illegal aliens were "entrenched" in this country.

Now do you know why the Patriot Act had this provision?

Svigor said...

I think people like Truth have a point. The activities described in that article are good old fashioned fraud. One could be agnostic, or even hostile, to the whole idea of HBD and still vigorously object to the activities that were described. The participants in these schemes could just as well have been American citizens as illegal aliens. Not all criminals have names like Carlos and Jose - believe it or not, some even have names like Bernie and nifty little titles like "Sir".

The point is that PC is used to bludgeon whites into submission; don't be surprised when it's used to bludgeon whites into submitting to wickedness.

Without PC, this fraud might not have been possible. It certainly would not have been possible to the extent it was.

Not seeing how there's any way around this particular painted corner.

ben tillman said...

I think people like Truth have a point. The activities described in that article are good old fashioned fraud. One could be agnostic, or even hostile, to the whole idea of HBD and still vigorously object to the activities that were described. The participants in these schemes could just as well have been American citizens as illegal aliens.

Ridiculous. Illegals don't have a credit history to hold them back or a credit FUTURE to worry about. They don't have an identity to which their behavior is tied. They have a ready-made escape hatch. The incentives and disincentives governing their behavior are vastly different from those governing a US citizen's. It's all upside potential.

Anonymous said...

They have a ready-made escape hatch. The incentives and disincentives governing their behavior are vastly different from those governing a US citizen's. It's all upside potential.

Being an American citizen is a disadvantage in this age. It's the Declaration of Independence turned on its head - and the voters only are to blame.

Mr. Anon said...

"Captain Jack Aubrey said...

IS this Gordon Brown's payback for those damn DVDs and all the other slights? Would be funny if that's how the story made it into the news."

Interesting point. It didn't surface at the time it happened - around the innauguration. Only now, after Mr. Brown was publicly humiliated, has it come to light.

Anonymous said...

David said
So after all the evidence of the Community Reinvestment Act, Bush Administration policy, Treasury guidelines, testimony from lenders, etc., etc., you say it was a chance event that the participants were illegals.

David do you really believe that there are no native born whites, blacks, or Asians who particpated in such schemes? This article is describing criminal behavior whereby underwriters intentionally ignored evidence that loan applicants were not American citizens, and even more importantly, they did not have the means to repay the loans that they were applying for.
You cite a number of laws in your post but it is obvious from the article that responsible parties in the banks were intentionally ignoring or breaking the very rules that they were supposed to be operating under.
These banks were not operating out of any altruistic desire to increase home ownership rates amongst minorities - they were simply trying to find a easy way to profit off of all of the cheap money that Greenspan had flooded the banking system with in the late 90s and early 2000s.
Why is that so hard to understand?

Ronduck said...

Over 50% of the sub primes were for cash-out refi’s.

Basically we gave these illegals Billions of dollars to stay here.

Its amazing that Deutsche Bank would be one of the leading lenders in this fraud.

PRCalDude said...

Steve,

The banks lending to illegals are the same ones involved in shariah finance.

I used to mock people who talked about "banker wars."

Anonymous said...

"Its amazing that Deutsche Bank would be one of the leading lenders in this fraud."

They were in it for the money. Now that the egg is over their faces, they turned around and went begging for money from the German gov. Immediately before that they were telling us that Christianity is over in Germany so we need to let the Turks in en masse. These people are greedy criminals and mental sluts.

Mr. Anon said...

"PRCalDude said...

Steve,

The banks lending to illegals are the same ones involved in shariah finance."

That video is longer than it needs to be. And the bombastic action-movie music that's always in the background is distracting and stupid. Why is that needed - a soundtrack to accompany a single person talking to the screen? Soundtracks are used to manipulate, not to inform

David said...

Anonymous said

David do you really believe that there are no native born whites, blacks, or Asians who particpated in such schemes?

Is that the best you can do?

underwriters intentionally ignored evidence that loan applicants were not American citizens

Greed appeared out of nowhere and standards of creditworthiness, built up and maintained over centuries, vanished! Darn that Greed!

You cite a number of laws in your post but...

But you didn't pay attention. What effect could laws have on anything?

These banks were not operating out of any altruistic desire to increase home ownership rates amongst minorities

Say it ain't so. (And I cleaned that up.)

You haven't been following Steve's articles on The Minority Mortgage Meltdown here and on vdare.com. Please read those and then come back.

PRCalDude said...

Soundtracks are used to manipulate, not to inform

Yeah, and...? I didn't make the video, but which parts do you believe to be "manipulative" and therefore false?

Mr. Anon said...

"PRCalDude said...

Soundtracks are used to manipulate, not to inform

Yeah, and...? I didn't make the video, but which parts do you believe to be "manipulative" and therefore false?"

I'm not blaming you for it, PRCalDude. And I'm already against Sharia-anything, anywhere in the western world.

I was just saying that if they want me to pay attention, they should forgo the soundtrack. Otherwise, I'll just turn it off - which I did. It is manipulative, and BTW, manipulative does not necessarily mean false - it just means manipulative.

Again, my beef isn't with you. This is just one of my pet peeves.