Did Undocumented Immigrants Commit Two-Thirds of Mortgage Fraud During the Housing Bubble?
No. But the idea is out there. Rep. Kenny Marchant (R-Texas) has proposed requiring Fannie Mae and Freddie Mac to verify that everyone receiving a home loan backed by them is of legal status. On the site America Speaking Out, where House Republicans lets users submit and vote on ideas for deficit reduction and general political priorities, Marchant (or, presumably, a staffer in his office) writes: During the housing bubble, mortgage fraud was egregious. Over the last decade, two-thirds of fraud reports came from illegal immigrants who were approved for loans despite providing FALSE information (such as Social Security numbers and Individual Taxpayer Indentification Numbers). Due to the bailout of Fannie Mae & Freddie Mac, taxpayers are now subsidizing millions of dollars in fraud. I propose we REQUIRE Fannie, Freddie and FHA – which handle 85% of the nation’s mortgage loans – to use E-Verify to ensure the legal immigration status of a borrower before originating, purchasing, or restruc
