Documents obtained by Democracy Foward and shared exclusively with Univision News, show that, by 2018, officials of the Department of Housing and Urban Development (HUD) began to instruct verbally to lenders not to give loans approved by the federal housing administration to beneficiaries of the Deferred Action 2012 (DACA).
The recommendation put in the look at close to 700,000 beneficiaries of the programme who, to have a valid permit to work in the country, dream of becoming a homeowner.
But in the last two years, the scenario changed and the requests of loans began to be denied.
“From one day to another the presidents of the banks, the businesses, said they are not accepting FHA loans, if the people could not show the green card” (which were legal permanent residents in the united States), said Diego Corzo, a real estate agent and dreamer.
Denials of mortgage applications began to be noticeable despite the fact that the loans had been granted to young dreamers over the years.
The organization Democracy Forward be asked this Friday to the Inspector General of HUD investigate why the change was made suddenly and informal. He added that the inquiry must determine whether the government “violated federal law by implementing illegally a secret political to deny to the beneficiaries of DACA housing loans backed by the federal government.”
“Because it did not meet the requirements of administrative law,” said Michael Martinez, a lawyer for Democracy Forward. “Because if you climbed those steps, we can say, in a case in a court that this change has no effect, has no force,” he added.
Democracy Forward presented more than 150 pages of internal records of the HUD that show how the implementation of informal and non-public policy exclusion of DACA violated the legal requirements for the decision making of the agency, it damaged the credibility of HUD and created uncertainty in the market of housing mortgage loanssaid the entity.
“The decision illegal and not recognized by the government to deny to the beneficiaries of DACA eligibility for federal mortgage loans adversely affected to the beneficiaries and creditors of DACA and created uncertainty in the market of mortgage housing,” said Robin Thurston, senior advisor, Democracy Forward.
“It was a shock train administrative, another example of what happens when the government of Trump does not account for immigrants,” he said.
The documents also indicate that the HUD “transmitted verbally of the policy change to individual lenders on an ad hoc basis, thwarting to some lenders that insisted to the officials of the ministry that the policy of the agency should be officially announced”.
“The HUD staff also expressed frustration that the senior leadership does not “publish the damn FAQ [Preguntas frecuentes]that would have made the department’s policy was clear and public,” the ministry said.
Cancellation of DACA
Loans for house purchases are slowed down months after president Donald Trump cancelled IF the 5 of September of 2017.
The program temporarily halts the deportations of thousands of young people who entered the united States before turning 16 and are referred to as dreamers. Also receive an employment authorization that is renewed every two years.
The internal documents show talks between officials of the agency on how to clarify the confusion of the eligibility of the dreamers. In 2018 took the decision not to publish a clarification between the most frequently asked questions.
Roe said that the implementation of the policy, to deny deny loans, it was chaotic. “And there were people who, although they were already within a week of signing the closing of your home, as they could not do so”.
What it says in the HUD?
HUD denies that it changed its policy. The ministry told Univision that “it has not implemented any changes-formal or informal during the government of president Trump,” and said that, in their guidelines on the dreamers, these “were never eligible to apply for federal mortgage lending”.
The same answer has been offered to Congress, but some democrats insist that it is not clear why prior to 2018 were loans and not now.
In a letter sent on 21 June last year, congressman Pete Aguilar, the ministry said that it “has not implemented any change in policy during the current Administration with regard to the eligibility requirements of the FHA for recipients of DACA”.
The letter explains in an erroneous way that the government of Barack Obama, “believed that the beneficiaries of DACA were eligible for loans from the FHA, as well as the current Administration changed this policy.”
“Both assertions are false”, he adds and says, “seem to be based on a news article online in dispute that, in turn, was mainly based on a blog written by a mortgage lender that offered their own incorrect interpretation of the guidelines for FHA’s long-standing”.
The letter also indicates that since at least 2003, the FHA has maintained a policy that non-u.s. citizens without legal residence “are not eligible for loans insured by the FHA” and that this same policy was incorporated into the Manual of family Housing in September of 2015 during the previous government, and clearly establishes that U.s. citizens without legal residence are not eligible for FHA-insured mortgages”.
Sources democrats, told Univision News that the Congress is ready to apply in the next few days a formal investigation by the Department of Housing.