Rep. Kenny Marchant, R-Texas, and a member of the House Financial Services Committee, has introduced H.R.4586, the Mortgage E-Verify Act.
According to a Marchant statement released Friday, the bill would require, as a condition for modification of a mortgage held by Fannie Mae or Freddie Mac or insured by the Federal Housing Administration (FHA), that the mortgagor be verified under the E-Verify program.
E-Verify, according to a description on the Department of Homeland Security Web site, is a Web-based system that allows an employer, using information reported on an employee's Form I-9 (Employment Eligibility Verification), to determine the eligibility of that employee to work in the U.S.
Marchant says the bill would "potentially save millions by cutting down on fraudulent claims from illegal immigrants and protect taxpayers from subsidizing the restructuring or renegotiation mortgages of illegal immigrants."
"Mandating [E-Verify's] use as a condition for home mortgage loan modifications would help eliminate waste, fraud and abuse in the system and bring integrity to the process," Marchant claims.
Marchant's statement notes a recent case in Nevada where a mortgage company branch manager conspired to manufacture and submit false employment and income documentation for borrowers, most of whom were illegal immigrants. Fifty-eight of the 233 fraudulent FHA loans totaling $6.2 million have gone into default, costing the Department of Housing and Urban Development nearly $2 million, Marchant says.
SOURCE: Office of Rep. Kenny Marchant