HUD IS Denying FHA loans

buzzfeed.com

WASHINGTON — The Trump administration is refusing federal housing loans to young immigrants who were brought to the US illegally as children, despite Housing Secretary Ben Carson’s denials that it is happening.

BuzzFeed News first reported in December that the Department of Housing and Urban Development was quietly advising lenders to deny DACA recipients the government-insured loans, based on interviews with people who lost out on the loans because of their immigration status, as well as loan officers, realtors, and industry associations. When asked about that reporting, Carson told a congressional committee last month that he had no idea why they were being turned down for the loans and that he was “sure we have plenty of DACA recipients who have FHA-backed loans.”

But lenders are still getting advice in emails and verbal conversations with Carson’s staff at HUD that DACA recipients are not eligible for loans insured by the Federal Housing Administration (a part of HUD), according to interviews with lenders and documents reviewed by BuzzFeed News.

One lender, Geoff Huetten, reached out to the department help desk for clarification about whether he could issue FHA-backed loans to his clients who are DACA recipients. After several back and forths, Huetten finally received a direct answer on March 20 in an email reviewed by BuzzFeed News.

“I said something to the effect of, I need a straightforward yes or no answer, does FHA lend to DACA borrowers, is that acceptable? And they came back and said no,” said Huetten, branch manager at Northwest Mortgage in Washington State.

“Per USCIS, individuals in the United States under the Deferred Action Childhood Arrival (DACA) program, EAD Category Code C33, are not considered to have lawful status,” the email from the FHA Resource Center said. “Therefore, the borrower(s) are not eligible for an FHA-insured mortgage.

The answer was in line with the information that lenders and realtors say they’ve been getting for about a year from FHA help desks and HUD officials at conferences since roughly September 2017, when the Trump administration first moved to try to end the DACA program.

“I wasn’t happy to get the email in that I wanted it to be a yes, but I was happy to get it in that it was a straightforward, definitive answer,” said Heutten. “Here’s what they’re saying, so now we have evidence that HUD is actually denying these people for loans. Somebody at some level has put it out there and said, ‘No we will not do these,’ because it’s not just me getting a no on this, it’s everybody.”

“These are good borrowers, many of them are self-employed borrowers, they’ve created their own businesses, they’re paying their taxes,” Heutten said. “So … the government is okay taking their taxes, but they draw the line at home ownership? Good enough to take your taxes and your money but you can’t buy a home.”

HUD did not respond to a request for comment.

Less than two weeks after the department sent its email to Huetten, Carson testified before Congress that he had “asked around” after reading BuzzFeed News’s December story and that “no one was aware of any changes that had been made to the policy whatsoever.” adding that it would “surprise” him if DACA recipients were being turned down.

The FHA does not have any explicit policy about DACA recipients to begin with, though department officials are giving out advice to the contrary — DACA status is not directly addressed in the FHA’s single-family housing handbook, the set of rules the agency refers lenders to. The handbook says only that an Employment Authorization Document — which DACA recipients have — is necessary “to substantiate work status” for noncitizens and qualify for the housing loans.

Before the hearing, HUD responded to a letter asking about the issue from Democratic Rep. Pete Aguilar of California, saying that the department’s policy had not changed. Aguilar told BuzzFeed News that in a private meeting with Carson in February, the secretary assured him that “he had heard about the situation, that he had looked into it, and that it wasn’t happening.”

After Aguilar heard from more lenders that they were still being told to turn down DACA recipients, the Democrat sent a follow-up letter to Carson last week demanding answers about why the secretary did not provide accurate information during his hearing and in letters.

Aguilar said he’s “frustrated and disappointed” that the secretary’s public testimony and comments to him in private conversations, including the February meeting, contradict what HUD officials are telling lenders.

“I want to be clear, I’ve spoken to him multiple times and each time he seems really understanding and assures me that DACA recipients are not being discriminated against,” Aguilar said. “That’s what is frustrating — either he doesn’t know this is happening in the department he’s leading or he knows and he is not being truthful about it.”

Aguilar also had a call scheduled for Tuesday with Secretary Carson, but told BuzzFeed News that “once HUD staff saw the letter and the questions I was asking the call was canceled.”

I am a first hand example of how they were/are denying loans to DACA borrowers. See below:



Backstory. I bought a house using an FHA loan back in 2015. I was trying to pull a loan on the equity this house has built and went to the same lender of that loan (LoanCare). Long story sort, they denied me for that. They even inserted a line for me lol.

After that, I had to go to a private lender and reapply. I was approved last January and I even got more money than what I originally asked for. I'm selling the house in the next few months.

Don't know why this is big news. Any federal might as well fuggedaboutit.

Not for nothing but why would you want to buy a house knowing Protections are at risk?

Same reason some of us went to college to get a degree before DACA came into existence, gotta keep moving forward and readjust when that time comes. I graduated the same month DACA was enacted. Got a good job 6 months later with my degree. In a parallel universe, I coulda just said "why get a degree, can't get a job anyway," life woulda turned out way different.

Have to move forward with your life my friend. If dreamers just don't do anything because our status is at risk for the past 18 years, 99% of us would only be a high school graduate at age 40. As far as I know, we can be waiting for 20 more years, no one knows what will happen. In the meantime, keep moving forward with your life.

🙌🏿 Well said. Thank you.

Exactly this.. I graduated college in 2011 didn't get to use the degree until 2013 but Hella worth it.. I make 3-4 times more now.

I guess I’m taking a different approach. I have a good job and don’t see the need to invest on anything while nothing is certain. The money I’m saving will come handy deported or not.

Your money isn’t growing while it’s sitting in your saving account.