Just who are these borrowers that are defaulting on their mortgage loans at a nearly a 50% rate? Leonardo Simpser of the Hispanic National Mortgage Association (NHMA) says that Hispanic first-time buyers constitute the fastest-growing segment of the subprime mortgage market. He also says that many Latinos, especially recent immigrants, have low FICO credit scores or no scores at all and are less creditworthy than they are in reality.
HNMA is the creator of the Hispanic Automated Underwriting System (HAUS) which claims to allow lenders to "eliminate the need for time-consuming manual underwriting of such applicants, and allows lenders to underwrite borrowers with no Social Security numbers and multiple income sources."
Saturday, August 18, 2007
There's a little-known connection between the sub-prime mortgage problems that have surfaced lately, and the illegal immigration flood. Check out what The Undocumented Blogger has to say about it.