         
|
|
Undocumented
Immigrants Could Add $44 Billion in
New Mortgages If Given Access to Homeownership
Undocumented Latino immigrants would add an estimated $44 billion
in new mortgages to the housing economy if barriers were removed and
they were given access to buy homes in the U.S., according to a study
released by the National Association of Hispanic Real Estate Professionals
(NAHREP).
The flow of capital from these home purchases would stimulate business
across the financial services, construction and remodeling and retail
sectors, and increase the tax base for communities with high immigrant
populations.
The report asserts that nearly a quarter million of the estimated
1.5 million undocumented immigrant households in the U.S. could become
homeowners if barriers such as identification, legalization, traditional
credit requirements and language were no longer issues.
"Undocumented Latinos are an invisible element in our economy
today. Until now, no one has attempted to quantify the positive impact
these consumers can have on our nation," said Gary Acosta, Chairman
and Cofounder of NAHREP. "This is a matter of economics. As homeowners,
these people would make enormous contributions to local communities
all across America."
NAHREP, a non-profit 501c6 trade association for Hispanic real estate
professionals, commissioned the report because undocumented Latinos
continue to present a dilemma to professionals in the real estate,
housing and lending industries. In many instances, these prospective
homebuyers have been in the U.S. for many years and have the willingness
and income to purchase a home but can't get past identification, legalization
and credit history barriers.
Rob Paral & Associates performed the study. Paral is a research
fellow with the Immigration Policy Center of the American Immigration
Law Foundation, though the report was performed outside his duties
at the center. The report employs commonly used methodology to determine
traits of undocumented immigrants using available census data. The
findings suggest the following:
-- Many of the undocumented Latino householders have age and income
characteristics associated with potential homeownership. Renters and
homeowners number more than 600,000 householders aged 35 years or
more and 721,304 undocumented householders have household incomes
of $30,000;
-- If all the current undocumented, renter households purchased affordable
homes, it would translate into $44 billion in mortgage originations.
This would create an economic catalyst that generates a cash flow
into American industries such as financial services, real estate,
construction and remodeling and retail. This doesn't include the stability
and personal equity these families will build and the tax revenue
they would create for local communities.
-- More than 215,000 currently undocumented householders could become
homeowners if they had legal status;
-- Some 172,626 current undocumented renter householders could potentially
afford a home worth $94,500 or more;
-- Undocumented immigration status creates major barriers to homeownership
because the immigrants have difficulty proving their identification
and credit history. At this time, mortgage market giants Freddie Mac
and Fannie Mae are not financing mortgages taken out by the undocumented.
Increasingly, lenders are accepting Individual Taxpayer Identification
Numbers issued by the IRS as a form of identification. Legal status
is necessary, however, to fully incorporate undocumented households
into the mortgage lending industry.
Leaders from the corporate arena applauded the findings of the study,
particularly those in the service industries that are challenged with
developing initiatives for the underserved market.
"We applaud NAHREP for bringing to the forefront the economic
significance that undocumented Latinos can have on the economy and
in their communities through homeownership," said Geoffrey Cooper,
Director -- Emerging Markets at MGIC, a national private mortgage
insurance company that is piloting a mortgage program for undocumented
residents. "There are many immigrant families who are here to
work, raise families and build a life in the U.S. If we bar these
families from participating in homeownership, we deny them access
to the single biggest wealth-building tool in our society."
The findings are also consistent with other recent reports on Latino
homebuyers that cite common barriers to homeowners including: Lack
of relationships with financial institutions; lack of credit and,
therefore, credit scoring challenges; low- to moderate- income; lack
of affordable housing.
NAHREP's mission is to increase the rate of homeownership amongst
Hispanics by empowering practitioners with tools and information that
will help them better serve homebuyers. Founded in 1999 by veteran
practitioners Gary Acosta and Ernest Reyes, the San Diego-based trade
group has more than 12,000 members in 50 states and 31 affiliate chapters.
|
|
To Advertise in the Print Edition Click HERE
To Advertise in the Online Edition, Click HERE
Digital Cover
|
|
