Immigration Debate, Legislation Affects Florida Home Loan Market
You can’t get away from the debate on immigration. Even those simply wishing to watch Grey’s Anatomy were greeted by a presidential address Monday night. If certain legislation is passed, however, hopeful Florida home loan owners - and others seeking mortgages around the nation - will feel the brunt of this controversy.
Take the case of Robert Franklin. He’s the owner of Budget Transmission Masters in Albuquerque, N.M. and he employs a dozen people. In 1999, he took out a $300,000 home mortgage – a feat that could become impossible under legislation introduced this year because Franklin is a non-resident immigrant.
“Make no mistake, there are hundreds of thousands of people like me all across America, and they’ve all got mortgages,” says Franklin, who is in this country legally and has never missed a mortgage payment.
Immigration is currently one of the hottest issues facing the nation. In February, Rep. Bill Dix, (R-Shell Rock), a member of Iowa’s state legislature, introduced a bill prohibiting mortgage loans to buyers who are not U.S. citizens or permanent residents under federal law.
The law passed the House, but not the Senate, but Dix will pursue it. On the national front, bill H.R. 2043 would, among other things, amend the Truth in Lending Act to prohibit residential home loan for so-called “illegal aliens;” it’s under consideration in the U.S. House of Representatives.
Various views on immigrants, Florida home loans
In February, Paul Egan, director of government relations for the Federation for American Immigration Reform, told Inman News he had no problem with mortgage loans to immigrants with green cards.
However, Florida home loans to those without permanent residency status are another matter, he said.
“I can tell you as a matter of principle it’s not a good idea to make mortgage money available to individuals who can be deported at any time,” said Egan. “Who would be holding the bag if the federal government did enforce the laws against illegal immigration? It would approach the enormity of the savings and loan collapse of the 1980s.”
In addition to the mortgage on their home, the Franklins, who both work in the business, have a commercial mortgage on Budget Transmission Masters’ building. “We got a 15-year mortgage on this property. We’re now about halfway through the term,” Franklin said.
Franklin is vice president of Nor Este Homeowners Association, an organization of homeowners in a housing development adjacent to his family’s home. He has been involved with the Boy Scouts and his business supports the local technical vocational institute.
Asked if he would like to become a U.S. citizen, Franklin answers quickly. “I would be the first in line tomorrow morning. Unfortunately, there is no opportunity. You can’t go to the INS, there is no avenue whatsoever for us to change our status.”
This is especially a pressing issue in the Sunshine State. It’s a melting pot for Hispanics and other cultures that help to drive sales and keep the Florida home loan industry stable.
