Undocumented Immigrants Could Add $44B In New Mortgages.

Undocumented Latino immigrants would add an estimated $44 billion in new mortgages to the housing economy if barriers were removed and they were given access to buy homes in the U.S., according to a study released by the National Association of Hispanic Real Estate Professionals (NAHREP). The flow of capital from these home purchases would stimulate business across the financial services, construction and remodeling and retail sectors, and increase the tax base for communities with high immigrant populations.

The report asserts that nearly a quarter million of the estimated 1.5 million undocumented immigrant households in the U.S. could become homeowners if barriers such as identification, legalization, traditional credit requirements and language were no longer issues.

“Undocumented Latinos are an invisible element in our economy today. Until now, no one has attempted to quantify the positive impact these consumers can have on our nation,” said Gary Acosta, Chairman and Cofounder of NAHREP. “This is a matter of economics. As homeowners, these people would make enormous contributions to local communities all across America.”

The findings suggest the following:

— Many of the undocumented Latino householders have age and income characteristics associated with potential homeownership. Renters and homeowners’ number more than 600,000 householders aged 35 years or more and 721,304 undocumented householders have household incomes of $30,000;

— If all the current undocumented, renter households purchased affordable homes, it would translate into $44 billion in mortgage originations. This would create an economic catalyst that generates a cash flow into American industries such as financial services, real estate, construction and remodeling and retail. This doesn’t include the stability and personal equity these families will build and the tax revenue they would create for local communities.

— More than 215,000 currently undocumented householders could become homeowners if they had legal status;

— Some 172,626 current undocumented renter householders could potentially afford a home worth $94,500 or more;

— Undocumented immigration status creates major barriers to homeownership because the immigrants have difficulty proving their identification and credit history. At this time, mortgage market giants Freddie Mac and Fannie Mae are not financing mortgages taken out by the undocumented. Increasingly, lenders are accepting Individual Taxpayer Identification Numbers issued by the IRS as a form of identification. Legal status is necessary, however, to fully incorporate undocumented households into the mortgage lending industry.