Illegal Immigrants Are Good Risks, Lenders Find

Charlotte Observer (NC) (06/13/08); Hirsch, Deborah
Lenders willing to write mortgages to illegal immigrants who have decent credit, proof of tax filing and an individual taxpayer identification number (ITIN) are finding that the gamble is paying off. In North and South Carolina, just 27 of the roughly 2,800 ITIN loans made by six banks have entered into foreclosure--less than 1 percent, according to the Hispanic National Mortgage Association and local lenders. Latino immigrants may be staying afloat in the slumping real estate market for a number of reasons, including that they purchase a home to live in, rather than to turn a profit, and they often reside with other adult relatives--which allows the cost of the mortgage payment to be spread around, particularly if one member of the household loses a job or is deported. While community banks, credit unions and small banks are actively catering to the ITIN market, large banks continue to keep their distance.