Former President and Republican presidential candidate Donald Trump has announced a controversial plan to ban undocumented immigrants from obtaining home mortgages, ahead of the 2024 presidential election.

What Happened: Trump announced plans to prohibit undocumented immigrants from obtaining home mortgages. Trump made this statement during a speech at the Economic Club of New York, reported by The Wall Street Journal on Thursday.

"We also cannot ignore the impact that the flood of 21 million illegal aliens has had on driving up housing costs. That's why my plan will ban mortgages for illegal aliens," Trump said.

The Republican nominee for the 2024 election, argued that this measure would help reduce home prices. However, undocumented immigrants account for a small portion of U.S. home sales, with only 5,000 to 6,000 mortgages issued to them last year, according to the Urban Institute.

In contrast, over 3.4 million mortgages were issued to all home buyers in 2023, federal data shows. Trump's comments come as housing remains a critical issue for voters, with home prices and mortgage rates soaring during the pandemic.

Trump has frequently blamed illegal immigrants for various national issues, including crime and unemployment. He now attributes the housing affordability crisis to undocumented immigrants. However, affordable housing advocates and real-estate professionals argue that his proposal would not significantly impact home prices.

Gary Acosta, CEO of the National Association of Hispanic Real Estate Professionals, said, "It's just another effort to vilify immigrants and to continue to scapegoat them for any issues that we have here in the United States."

Why It Matters: This announcement comes amid a series of significant policy proposals and changes in the U.S. immigration landscape. In June, President Joe Biden introduced a new immigration policy aimed at granting legal status and a path to citizenship for up to 500,000 undocumented spouses of American citizens.

Additionally, in August, California proposed a plan that could allow undocumented immigrants to receive taxpayer-funded assistance for home purchases. This proposal, part of the California Dream For All Shared Appreciation Loan program, has sparked a heated debate within the state.

Trump's proposal to ban mortgages for undocumented immigrants also aligns with his broader agenda to cut federal spending. On Thursday, he announced plans to establish a government efficiency commission headed by Elon Musk if elected. This commission aims to streamline federal operations and reduce costs.

Economist Paul Krugman has criticized these plans, warning about potential risks to essential programs like Medicare and Social Security.

Meanwhile, Democratic presidential nominee Kamala Harris plans to tackle rising homeownership costs by providing first-time homebuyers with $25,000 in down payment assistance for their new home.

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote