Monday, October 6, 2008
Undocumented Homeowners Better Risks
The Los Angeles Times reported that undocumented homeowners seem to be better risks to lenders than U.S. citizens. This conclusion comes from a comparison of delinquencies of those who submitted ITINS numbers in processing the loans and those who used Social Securities numbers. An ITINS number is simply the tax number one receives from the Internal Revenue Service. It is legal for lenders to accept such verification in stead of the Social Security number. Undocumented aliens generally apply and receive such numbers. That's what is submitted for a home loan. Delinquencies on ITINS loans is 1.15% compared to 3.5% on other loans. Lenders that do accept the ITINS still set tougher qualifications for undocumented borrowers. As a consequence few undocumented homeowners took subprime loans and so few face foreclosure. Many undocumented also look on homeownership as one of their primary goals in establishing roots in U.S.