Banks worried about being called felons just because they may have aided and abetted illegal aliens

The Chicago Tribune's "Immigrant bill worries banks" from Becky Yerak informs us that officers of banks that give home loans to illegal aliens are worried about being named as felons if HR4437 passes.

As discussed below [1], if a bank knows that someone is here illegally, and then gives them a home loan that allows them to stay here illegally, hasn't that bank committed a felony under current law?

For reasons that I completely, absolutely cannot understand, Yerak didn't look into that side of things. She didn't, for instance, ask legal experts to weigh in. In fact, that paper covers this from the angle of the banks as the victims:
Headquartered in the heart of Chicago's Little Village neighborhood since the late 1800s, Second Federal Savings isn't shy about marketing itself to immigrants.

On the home page of its Web site, a link directs undocumented immigrants to a program that can help them become homeowners.
Indeed it does. In fact, this is the first paragraph of that page ( ):
Unique loan program helps undocumented immigrants to buy homes Second Federal has pioneered the Individual Taxpayer Identification Number (ITIN) Loan Program, an innovative mortgage-lending program to help undocumented members of our community to get off the rent rolls and into home ownership.
I have to believe one of three things: either that bank has consulted lawyers and has determined that explicitly promoting giving loans to illegal aliens is not a violation of our laws, or they think the use of "undocumented" rather than "illegal alien" is defensible, or that bank knows that our politicians and prosecutors are willing to look the other way.

That page continues:
We have developed strong partnerships with the Chicago office of the Mexican Consulate and regional Latino brokers who cater to the Mexican/Latino community. Second Federal also participates in the New Alliance Task Force, a Chicago/Milwaukee coalition of bank representatives, regulators and nonprofit service organizations. Through our involvement in the coalition, we have led the way in the financial services industry with regard to ground-breaking loan programs using alternative IDs such as Matriculas and ITINs. The Matricula is an alternative form of identification issued by the Mexican Consulate to Mexican nationals living in the United States, regardless of their legal status.
It seems our leaders may have given their imprimatur to this scheme.

The article continues:
Particularly worrisome to financial institutions serving undocumented individuals is a bill sponsored by U.S. Rep. James Sensenbrenner, R-Wis., and recently approved by the House that would make it a crime for any person or business to help illegal immigrants.

Some bankers worry that such a law could end up making a criminal out of any institution making loans to illegal immigrants. Homeownership should be encouraged to stabilize a community, they say.

One banker worries that if the U.S. government plays hardball with immigrants, then hostilities could erupt in the United States, just as they did recently in France.
I'm sure he's thinking of what's best for the U.S. and not just for what's best for his pocket book.

If you live in Illinois, could you please contact all your representatives and urge them to look into what this bank is doing? Let's make an example of Second Federal Savings.

[1] "New South Federal Savings Bank... and RICO?" concerns a different bank with a similar program:
"What this bank is doing is a clear violation of the U.S. Immigration and Nationality Act," said Craig Nelsen, executive director of Friends of Immigration Law Enforcement... [FILE] is threatening to use the Racketeering Influenced and Corrupt Organizations Act (RICO) to file a civil damages lawsuit against the bank...
The FILE letter contains this:
It is very likely a court would find the issuance of a mortgage under your new program to be a criminal violation of 8 U.S.C. 1324 (Bringing in and Harboring Certain Aliens), which makes it a felony to encourage an alien to reside in the United States knowing that such residence is in violation of law. §1324(a)(1)(A)(iii) It is hard to imagine any court taking seriously a claim that helping an illegal alien buy a house situated inside the United States isn't knowingly encouraging the illegal alien to reside illegally in the United States.


I am a real estate loan officer at a bank in Texas with 28 years experience. It had always been policy in the past that with no social security number, no loan. Per the SSA regs, an ITIN is not to be used for any other purpose than to pay taxes and definitely not for identification. And so far that has not changed. But in the last year the FDIC came out and proclaimed that it was perfectly acceptable to use the ITIN as well as the Matricular Consular Card for bank ID purposes. That is when our competition, Freddie Mac and Fannie Mae began mass marketing this "dominant" demographic. I am responsible for real estate compliance and fought it mainly because I do not believe someone here illegally should have access to these services and benefits; however, once the FDIC announcement came out, management trumped my arguments. It is hard to argue when these government agencies have conflicting policies. That is why banks are not too concerned; of course also, we've got to remember that "bottom line" that pays us now. No concern for later when we lose our country.

Ahem, what about Fannie Mae?

Anybody following the shennanigans there?

Their acocunting woes DON'T even touch home loans to illegals or loan fraud, just shennigans with corporate accounting tricks.

Jamie Gorelick of FBI "Able Danger" and 9/11 comission fame wrote the legal guidelines for FNM.

She was an ACLU porn lawyer before becoming a Clinton appointee and justice dept official.

Bankers and the banking system know what your age is where you came from, name it! eh is right on and D.Flinchum said it all, the fact is most banks care nothing about a nation only money.

and lets face facts this nation is as dead as it gets, it will be understood by all soon, most of you will be living inside mexico soon and you will understand that fact, sad if you don't fight the rats the rats will take what you have, and the system of evil globalism/ third world socialism will eat you alive. so understand its about you not some guy other guy, its you that banks are attacking.

As someone who recently (2003) went through a credit check for a home-buliding loan, let me say that banks can certainly determine your legal (and economic) status IF they choose.

Lending money to someone whom you know to be illegal is very different from giving them food from a food bank. If it isn't a criminal offense, it should be.

The remarkable thing to me is that banks would willingly risk lending to people who could be deported, however unlikely that may seem, unless they figure that they can reclaim the property and quickly resell it in a hot market. Most people I have known in that industry say that a repossession is about the last thing a bank wants to deal with.

The article has a tone similar to what you'd expect from an 8 year old.

[Mitchell Bank also said it's "impossible" to sort people who are seeking banking services by their immigration status.]

This part is particularly absurd, as the text you found makes it clear banks actively market to illegals.