While the subprime market has taken a hit in recent months, lenders continue to report success with ITIN mortgages, or home loans given to illegal immigrants who use individual taxpayer identification numbers instead of Social Security numbers.
Lenders say these borrowers are evaluated using different criteria than traditional borrowers — such as whether they have paid taxes for at least two years and made timely utility, rent, and cell phone bill payments. The amount of money sent to relatives in their homeland and their running tabs at local grocery stores also are assessed.
The number of banks writing such loans has expanded since the Hispanic National Mortgage Association began purchasing the loans and bundling them into securities for sale to investors. Banks report a less than 1 percent delinquency rate for ITIN mortgages, but there are concerns that rising borrowing costs and a possible crackdown on illegal workers by the federal government will make it difficult for them to keep up with their monthly payments.
Source: The Wall Street Journal, Miriam Jordan (10/09/07)
