Durham Reporter

Former president and current president-elect Donald Trump has pledged to ban mortgages for illegal aliens, claiming the policy would help alleviate housing affordability by reducing the impact of a "flood" of illegal aliens on housing costs.  

Trump's comments during a speech delivered to the Economic Club of New York in early September turned to the negative impact of illegal immigration on the U.S. housing market. 

“We cannot ignore the impact that the flood of 21 million illegal aliens has had on driving up housing costs,” Trump said.

In 2023, 5,000 to 6,000 mortgages were issued to holders of Individual Tax Identification Numbers (ITINs), which are given to illegal aliens. 

Some lenders, such as Self-Help Credit Union, offer federally-backed mortgage products to ITIN holders and have received healthy government subsidies. 

Durham Reporter reported that North Carolina's Attorney General, governor-elect Josh Stein, was formerly employed by Self Help Credit Union.

Prior to the Nov. 5 election Stein was subjected to criticism over his past employment at Self-Help Credit Union, which has received over $502 million in federal funding. 

Self-Help Credit Union made headlines earlier this year over their practice of issuing mortgages to illegal aliens. 

A poll issued during campaign season revealed nearly 90% of North Carolinians believe illegal immigration harms the state's quality of life. 

Stein's involvement with Self-Help Credit Union raised ethical concerns about potential conflicts of interest, as questions arose about his knowledge of the credit union's controversial lending practices and his stance on mortgages for illegal aliens. 

The lack of transparency from Stein's office on these issues could become a significant focal point for voters as the governor-elect prepares to take office in January 2025. 

Trump’s comments reflect a central theme in his 2024 campaign: that illegal immigration and unchecked border policies have harmed American citizens and contributed to national economic crises, including the housing shortage. 

Trump's broader immigration stance includes deporting millions of illegal aliens.

In the speech given to the Economic Club of New York, Trump also criticized a bill in California that would have provided financial assistance for illegal immigrants to buy homes. 

“My plan will ban mortgages for illegal aliens in California,” he said. “They’re passing a law where they’re going to give illegal aliens money to buy a house. But our soldiers are veterans that are living on the streets. They can’t have them.”

California lawmakers approved Assembly Bill 1840, which if it had been signed into law would have made the state the first in the U.S. to offer up to $150,000 in down payment assistance to illegal aliens for home purchases. 

The bill passed with strong support from Democrats, but sparked intense opposition from Republicans, who argued it incentivizes illegal immigration and exacerbates the state's housing affordability crisis. 

Critics, including Assemblywoman Kate Sanchez and Senate Minority Leader Brian W. Jones, argued that the measure prioritized illegal immigrants over struggling legal residents, such as veterans and low-income citizens, in a state already grappling with a housing shortage and a $46 billion budget deficit. 

That bill was vetoed by Gov. Gavin Newsom the day following Trump’s remarks at the Economic Club of New York.  

Trump, a frequent critic of California’s policies, suggested that the priority should be supporting U.S. veterans, many of whom, he claimed, are struggling with homelessness. 

“You have soldiers right now laying on the streets of different cities, all Democrat-run. They're laying on the streets in front of hotels, in some cases luxury hotels. And you have illegal immigrants coming in and living in those hotels and laughing at our soldiers as they walk by into a luxury lobby,” Trump said. “Is there something wrong with that thinking? Is there something wrong with our country?”

Trump also painted a grim picture of the current state of the U.S. economy, particularly in terms of housing affordability. 

“Gasoline prices, grocery prices, electricity prices, mortgage rates, and virtually everything else are up 30 to 100% since I left office,” Trump said.

Trump, who made inflation and economic policy key talking points in his landslide 2024 victory, accused President Joe Biden and Vice President Kamala Harris of mismanaging the nation’s economic recovery, claiming that their policies have left most Americans locked out of homeownership.

“I handed Kamala and Joe the fastest and strongest recovery ever recorded. Nothing even close with 1.4% inflation. The 30-year mortgage rate was at 2.4%,” Trump claimed. “Now look at where we are. We're in the middle of a housing affordability crisis, and most people can't afford to buy a home. They’ve had to sit on the sidelines.”

Trump's speech, delivered at an event where the former president made his case for a second term, centered heavily on his plans to address housing costs if re-elected. One of his most significant promises was to tackle mortgage rates, which have soared during the current administration. The former president suggested that if he were back in office, he could reverse the economic damage, starting with lowering mortgage rates.

“We will make housing much more affordable,” Trump said. “As inflation is tamed, interest rates will dramatically fall. They'll be down very, very low. We'll get them down. We had them down to 2.4% and even lower than that for a period of time.”

Trump said he believed mortgage rates could reach as low as 3%, which would save the average homebuyer thousands of dollars annually. 

“We’re going to get them back down to 3%, maybe even lower than that,” he added confidently. “We’ve done it before, and we can do it again. The average American family deserves to own a home, and we will make sure that becomes a reality.”

At the time, Trump expressed confidence that his policies would restore American prosperity. 

“We had the fastest recovery ever, and we’re going to do it again,” he said. “America will be strong, and we’ll make the American Dream possible for everyone again.”