Betsey Stevenson, a former economic adviser to former President Barack Obama, has challenged the notion that undocumented immigrants are readily obtaining mortgages in the United States.
What Happened: Stevenson, now an economist at the University of Michigan, took to X, formerly Twitter, to address the issue. "Of all the anti-immigration myths, the idea that undocumented immigrants are applying for and getting mortgages is the craziest," she wrote.
To illustrate her point, Stevenson cited the case of Ben Bernanke, former Federal Reserve chairman, who reportedly struggled to secure a mortgage after leaving his position due to difficulties documenting his income.
Responding to a claim about mission-oriented lenders providing mortgages without proof of legal presence, Stevenson acknowledged the existence of such practices for long-standing undocumented residents. However, she emphasized that recent border crossers are not "heading straight to the bank to buy a house."
The debate highlights the complexities surrounding immigration and financial services in the U.S., with Stevenson's comments shedding light on common misconceptions about undocumented immigrants' access to mortgages.
Of all the anti-immigration myths, the idea that **undocumented** immigrants are applying for and getting mortgages is the craziest. When Ben Bernanke stepped down from the Federal Reserve Board he couldn't get a mortgage because he couldn't document his income well enough.
— Betsey Stevenson (@BetseyStevenson) October 8, 2024
Why It Matters: The debate over undocumented immigrants and their access to mortgages has intensified in recent months.
In early September, a proposal by former President Donald Trump to ban mortgages for undocumented immigrants sparked significant debate. The plan raised questions about the economic implications and the accuracy of claims regarding undocumented immigrants' access to financial services.
Meanwhile, California is considering offering up to $150,000 in home loan assistance to undocumented immigrants, a move that has drawn both support and criticism. Critics express concern over the potential financial burden on taxpayers.
Additionally, the broader economic impact of undocumented immigration has been highlighted by figures like Nassim Taleb, who warned that curbing undocumented immigration could lead to inflation due to the U.S.'s reliance on cheap labor.
