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 October 10, 2007

Mortgages for Illegal Immigrants Gain Popularity
In spite of recent problems in the subprime lending market, lenders are seeing success with ITIN mortgages. These types of loans are offered to illegal immigrants that utilize individual taxpayer identification numbers instead of social security numbers.
Lenders state that these types of borrowers are evaluated utilizing a different set of criteria than traditional borrowers. Some examples are whether they have paid taxes for at least two years and been on time with their rent, utility and cell phone payments. Additionally, the amount of money that is sent home to relatives in their homeland and running tabs at grocery stores may also be evaluated.

The number of lenders offering these types of loans has increased since the Hispanic National Mortgage Association started purchasing the loans. The loans are bundled into securities and offered for sale to investors. Banks have been reporting a less than 1% delinquency rate for ITIN mortgages. However, there are growing concerns that rising borrowing costs and possible government crackdowns on illegal workers will pose problems with these borrowers' ability to pay back their loans.

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