Banks Writing Mortgages for Illegal Immigrants??

I really wish that I could make this type of thing up. Let's see..... mortgage lending is getting tougher because of the real estate bust. Lending standards are getting tighter because of all of the irresponsible lending by the mortgage business over the years. So, business is not as good and standards for lending are going up. So, what is a bank to do to make money?

Well, they can go after the illegal immigrant market. Yes, they can lend money to illegal immigrants so that they can own a piece of the American Dream while illegally residing in this country. Now, let's look past the illegal immigrant debate and issue. I just want to focus on profit motivated banks and how even for them this makes no sense.

They are going to give credit to someone without a credit score who could easily take out the note and go back to their country at a moment's notice. The bank gets stuck with the property in a real estate market that is in the beginning to middle stages of a bust. That makes no business sense at all. However, they do get to charge outrageous fees and very high interest rates to the ones who make the program work.

In Maricopa County the sheriff whose office has arrested hundreds of illegal immigrants, said banks providing these loans are taking on a risky proposition.

Well at least they are not writing sub-prime loans. After all the definition of a sub-prime loan is a loan that is given to someone who is a credit risk and has a very low credit score. Maybe in the interest of fees and high interest rates the rationalization is that the sub-prime issues don't apply here because after all the illegal immigrants don't even have a credit score.

The saddest part of the irresponsible lending practices of banks is that a legal residing resident with poor credit cannot even get a loan today.

Someone really needs to regulate these big banks.