Prohibit Mortgages to Illegal Immigrants

H.R. 1427

May 22, 2007

H.R. 1427 would prohibit Freddie Mac and Fannie Mae from purchasing residential mortgages from anyone without a valid Social Security number, thus preventing illegal aliens from getting home loans.  Currently, people who use Individual Taxpayer Identification Numbers rather than Social Security numbers can qualify for home loans; however, there is no way of ensuring whether they are legal residents.  A Social Security card would provide lenders the confidence of knowing the people seeking mortgages have a legal right to be here because the Social Security Administration verifies legal residence status prior to issuing a number.  The following facts may be helpful in addressing some of the misinformation used to oppose this common-sense reform:

Myth #1- This amendment would prevent hardworking people who are legally authorized to work in this country, but do not have social security numbers, from obtaining mortgages.

Fact-    If you are authorized to work in the United States you are able to receive a work-authorized Social Security number, regardless of whether you are a citizen, resident alien or non-resident alien.  Therefore, anyone who is legally working in this country would not be affected.

Myth #2- Making Social Security numbers mandatory to obtain a mortgage could restrict foreign investment in the United States.

Fact-    This amendment does not discourage foreign investment.  Section 1330 only requires a Social Security number for “principal residences.”  When a person applies for a mortgage, they are explicitly asked whether the mortgage is an investment property, secondary home, or primary residence.  Should a foreign investor wish to purchase an investment property in the United States, they will still be allowed to do so.

Myth #3- This amendment will hurt those who are unable to receive a work-authorized Social Security number, like students.

Fact-    If you are not a U.S. citizen and do not have work-authorized immigration status, you may still receive a Social Security number if you have a valid non-work reason for requesting one.