Tuesday, December 25, 2007

In an Era of Defaults, the Lower Risk Mortgages are Those of Illegal Immigrants

The number of defaults of loans given to illegal immigrants is equivalent to 1/10 of the number of all people defaulting on subprime loans. Careful screening among banks and a strong code of bill payment ethic (would Max Weber call it a "Hispanic Work Ethic"?) among borrowers makes lending to illegal immigrants a good risk. That defies the anti-immigrant stereotypes flying around that immigrants are generally hardened criminals and people of low moral fiber who are more likely to rape your daughter and kill your granny than to pay their bills on time.

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