Wednesday, September 24, 2008

Illegal Aliens and the Subprime Mortgage Crisis

I try to shy away from speaking to topics that I do not at least have a cursory understanding of, and this subprime mortgage crisis is a topic that I'd have a difficult time carrying on an intelligent conversation about. I've been, however, reading with interest the discussion on the topic at VFR and elsewhere, trying to learn something.

Hindsight, as they say, is 20-20. And with the benefit of hindsight, and a little background knowledge and a few personal experiences that serve to inform me, the connection that many are making between bad loans given to illegals and the subprime crisis makes a lot of sense to me.

For instance, of the 1.3 million illegal Hispanic aliens that fled the country over the last year, the question comes to mind, how many of them also fled their homes and mortgage payments? With the downturn of the economy and the slow-down in the construction industry (not to mention state and local efforts to remove the insidious presence of illegal aliens from their midst), we can safely assume that this trend is continuing. How many of those that are currently leaving are also abandoning their homes and ballooning mortgage payments? Many are just renters, but the question keeps coming up in the discussion, How Many illegal aliens had secured to themselves an illegitimate subprime loan?

Here and here are a couple of articles that I picked up over at in which this very question is asked. But I need to forewarn you, don't expect to get an answer. While everyone seems compelled to ask the question, no one, it seems, has the slightest inkling what the answer is, except to say that MANY of these bad loans were given out to illegal aliens.

How many is many?


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