Believe In America.com

butterbean · Joined: 21 Jun 2006 Posts: 2269

WASHINGTON - New legislation on Capitol Hill seeks to curb an increasingly popular mortgage concept: providing home loans to applicants using their Individual Taxpayer Identification Number, in lieu of a Social Security number.

ITINs are issued by the Internal Revenue Service to assist immigrant workers who do not qualify for a Social Security number -- but do have taxable income -- to report their income and pay federal taxes.

Dozens of banks around the country have begun offering home mortgages to undocumented immigrants using ITINs, but their programs generally have been low-key and small in volume. Bank of America stirred controversy earlier this month when it announced a pilot program in Los Angeles to provide credit cards to resident alien customers who lack Social Security numbers but have ITINs.

Some critics charged that the bank was seeking to profit by helping illegal immigrants who should be deported or prosecuted, not extended consumer credit.

Bank of America said its program is legal and might be rolled out nationwide if the pilot is successful.

Now a bill has been introduced in Congress that would prohibit financial institutions from providing home mortgages to anyone who lacks a Social Security number. The bill, introduced by Rep. John Doolittle, R-Calif., would amend the Truth in Lending Act to make ITIN mortgage lending illegal.

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http://www.charlotte.com/mld/observer/living/home/16773205.htm