Wednesday, December 14, 2005
Illinois To Subsidize Loans To Illegals
The state of Illinois is creating a special loan guarantee benefit specifically designed for illegal aliens. The Chicago Tribune editorializes:
Under Blagojevich's plan, the state will back below-market-rate loans for people who have little or no credit history, no bank account and no Social Security number. The loans wouldn't be limited to those who are here illegally, but that's clearly the primary target.What the Trib means is that there is no legitimate reason to do this. And what is the logic behind conferring privilege upon an outlaw class?
That means if the borrower defaults on the mortgage--say, the borrower is arrested and deported--the state's taxpayers would be on the hook for the balance of the loan.
There are believed to be as many as 11 million illegal immigrants living in the U.S. Eyeing the big market potential of this population, some lenders have begun extending mortgages to workers despite their inability to document their legal status.
Assuming that risk is a business decision that lenders make. But there's no reason for the state to shift the financial risk away from participating lenders and onto taxpayers, which is what Blagojevich's program would do.