Trump Seeks Mortgage Ban for Undocumented Immigrants

Former President Donald Trump Trump seeks mortgage ban for undocumented immigrants, claiming that this move could lower housing prices. Despite undocumented buyers being a small part of the housing market, Trump believes the measure could have significant effects. Currently, home loans for undocumented residents are legal but relatively uncommon in the U.S. The Urban Institute estimates between 5,000 and 6,000 such mortgages were issued last year, compared to 3.4 million overall.

Housing Crisis in Focus

Housing remains a critical issue in the upcoming presidential election. The pandemic saw unprecedented surges in rent and home prices, and mortgage rates reached levels not seen in over twenty years. A July Wall Street Journal poll revealed that voters rank housing as their second-largest inflation concern, after groceries. Both major 2024 presidential candidates have addressed housing in their campaigns, with Vice President Kamala Harris emphasizing the issue more prominently.

Trump seeks mortgage ban Housing will be a defining issue in the 2024 election, according to wall street journal login.

Criticism from Advocates

Affordable-housing advocates argue Trump’s proposal wouldn’t help homebuyers priced out of the market. David Dworkin, president of the National Housing Conference, criticized focusing on a minor market segment. He believes it ignores the broader housing affordability crisis affecting millions. Gary Acosta, CEO of the National Association of Hispanic Real Estate Professionals, condemned it as scapegoating immigrants.

Specialized Mortgages for Undocumented Immigrants

Undocumented immigrants can access specialized mortgages for taxpayers without Social Security numbers, primarily benefiting Hispanic individuals. The USA Patriot Act of 2001 allowed banks to accept IRS identification numbers. This extended financial services to those without legal status for the first time. These mortgages often have higher interest rates and may involve legal residents with undocumented spouses.

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Impact on Foreign Buyers

While mortgages for undocumented individuals are rare, foreign nationals’ real estate purchases in high-cost cities are significant. However, these purchases have recently declined across major U.S. markets. Nearly half of foreign buyers are non-residents, while the others are recent immigrants or on visas. Many affluent foreigners prefer buying U.S. homes with cash instead of using mortgages.

Trump’s Broader Economic Plan

In his recent speech, Trump attributed rising housing costs to the flood of undocumented immigrants. He argued that his plan to ban mortgages for them would address this issue. Trump’s speech also covered other economic topics such as energy and taxation, proposing additional measures to reduce housing costs. These include easing regulations for builders and increasing construction on federal land, similar to proposals in Harris’s housing policy outline.

Campaign Focus on Housing

At recent campaign events, including one in Michigan, Trump discussed housing issues and emphasized his 2020 policy reversal. He highlighted his administration’s efforts to encourage cities to reduce racial segregation through policy changes. “I keep the suburbs safe,” Trump asserted, emphasizing his commitment to protecting suburban communities. He claimed to have prevented low-income housing developments and kept illegal immigrants away from suburban areas.

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