New Bill Would Make ITIN Lending Illegal for Real Estate

Chinese Child

A new bill  has been introduced which will stop illegal immigrants from buying houses.

 

Rep. John T. Doolittle(R-California)  wants to make sure no one can purchase property within the U.S. without a [tag-tec]social security number[/tag-tec].  His bill will stop the practice of “ITIN” -based lending, or those mortgages that use Individual Tax Identification Numbers instead of Social Security numbers.   

 

Sounds good, doesn’t it?

 

But let’s take a closer look.

 

This bill could possibly  stop all foreign investors from anywhere who don’t have an American Social Security number.  That means we could lose a lot of new, fresh, extra money that has been flowing into this country.

 

Also, there is the chance other counties would retaliate and stop Americans from buying real estate abroad.  Is that really smart? 

 

So here’s the thing.  Yes, illegal [tag-self]immigration[/tag-self] is a problem.  But many of the foreign folks buying real estate claim they are in the process of becoming American citizens, whatever that really means. 

 

But facts are facts.  If they have an Individual Tax Identification Number from the I.R.S.  they are paying taxes.  They’re not cheating.  Doesn’t  that show some respect for our laws?

 

These borrowers generally perform very well as a group and are often considered by banks to be very good risks.   

 

Of course we need to get control of illegal [tag-ice]immigration[/tag-ice]. And we should have clamped down a long time ago.  But is this new bill really  the answer?     

 

 

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