How the Subprime Mess Hit Poor Immigrant Groups – Wall Street Journal

Immigrants are often taken advantage of. This article illustrates how many have been duped into mortgages they cannot afford which has caused a huge problem in this country. Many lending companies are laying off workers due to this massive collapse.

How the Subprime Mess Hit Poor Immigrant Groups
By JONATHAN KARP and MIRIAM JORDAN
December 6, 2007; Page A1

SOUTH SAN FRANCISCO, Calif. — Naira Costa, a 27-year-old housekeeper, met her husband at Message of Peace, an evangelical church that is a spiritual and social haven for Brazilians in the Bay Area. When the couple considered buying a house a few years ago, the church’s head deacon, Soario Santos, ministered to that need, too.
[Naira Costa]

Mr. Santos, a fellow Brazilian, served the Pentecostal church on nights and weekends. During the day, he worked as a loan officer at a mortgage brokerage owned by a Brazilian immigrant. Mr. Santos and other church officers also working at the same real-estate business routinely approached churchgoers to encourage them to buy homes.

Another twist in this story is the fact that Mr. Santos was a minister in his church. The following exchange does not sound like that of a minister to me.

About a month after their departure, Ms. Costa says, Mr. Santos called hurling threats. “I can prove you are the one who brought me fake papers,” she recalls him telling her.

When Ms. Costa said she had done nothing wrong and would find a lawyer, she says he warned: “If the FBI or Immigration gets involved, you’re done with because you’re illegal.”

And here’s where we see the abuse of immigrants come in. It was ok to sell a house and approve a loan for an “illegal immigrant”, but when things go bad that is used against them when they attempt to take action against wrong done to them. This is why we need to protect these immigrants from such abuses.

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6 thoughts on “How the Subprime Mess Hit Poor Immigrant Groups – Wall Street Journal

  1. it is really sad that a seriou newspaper like the wsj would do such a one sided story. if you read closely, you will see there that naira costa the ‘poor victim’ actually admitted under penalty of purgury and under oath that she falsified documents to take over $8,000,—in reality it was more like $13,000. in my book this is grand theft. she says she regrets making these ‘bogus’ documents yet, did she return the money to the lender?

    naira and her domestic partner are not the victims of some fraud, no they methodically and carefully planned this entire event so she could defraud the lender of this money, which apparently she was expecting $20,000. is this the reason they never made any payments?

    be careful who you judge as being wrong in this article. maybe the writer should have been more objective and not ignored all the facts. he claims no one wanted to comment, when in fact he chose what would be more interesting for an article that should have been published by some gossip paper.

    call it what it is; an illegal immigrant who defrauds the government of paying taxes, falsifies documentation to work, obtain drivers licenses and even to steal money from a bank. give me a break, this is no victim.

  2. I disagree. The lender knowingly manipulated the system in order to obtain the loan for his client. He advocated her use of any means necessary to get the loan. If you think that loan officers don’t fudge numbers to get their clients loans then you’re sadly mistaken.

    Illegal immigration defrauds the government of nothing. Most of these immigrants do pay taxes and contribute to communities. Of course, their are some that don’t as well, but that doesn’t make it ok to vilify a whole groups of people.

  3. I am not speaking about the group, but the supposed victim in this article.

    Also, I agree that the lender is at fault too. The lender referred her to another lender, who fudged the numbers. Yes, he was wrong in doing so, but that is more of a ethical question than legal one since he was not the one manipulating the case. He should of stopped her from the get go, not refer her to someone. He is wrong, but not to the extreme you and the writer are saying.

    BUT let’s not paint her as a victim when she is the only one who made a profit out of this and has several layers of fraud herself.

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