A controversial mortgage model that fueled explosive growth in Colony Ridge, Texas, is spreading across the country as lenders market directly to illegal immigrants using IRS-issued identification numbers.
Without Social Security numbers, many illegal immigrants rely on Individual Taxpayer Identification Numbers, or ITINs, to file taxes and apply for loans. Created in 1996, ITINs allow the IRS to process taxes for people without Social Security numbers. Advocacy groups call ITINs a “powerful tool” for illegal immigrants to buy homes in new developments.
The practice has grown into an industry. Colony Ridge — which aims for a population of 250,000 — illustrates the model’s scale. Critics say the development has attracted cartel members, smugglers, and other criminals.
As The Dallas Express previously reported, Gov. Greg Abbott formed a coalition to target criminal aliens in Colony Ridge after a law enforcement sweep resulted in more than 110 arrests.
Now, similar lending tactics are emerging nationwide. The Daily Wire identified multiple lenders openly advertising ITIN loans. Amres, based in Pennsylvania, promotes lending to “empower non-citizens” and highlights success stories of illegal immigrants who obtained mortgages with ITIN documents.
Prysma Lending Group, headquartered in Connecticut and active in six states, published a guide to prevent deportation and hosted a discussion with an immigration lawyer. Cayetano, a developer near the Texas border, urges buyers to “own a piece of American land” and accepts Mexican consulate cards.
Other firms use direct language in their marketing. Novus Home Mortgage, a division of a Wisconsin bank, states loans are available to “legal residents and undocumented immigrants.” Florida-based AD Mortgage, which operates in 48 states, notes that “immigrants, including undocumented individuals” qualify. Defy Mortgage promotes “comprehensive mortgage solutions tailored to non-US citizens” and advertises eligibility for “non-resident aliens, undocumented immigrants, and dependents who cannot get an SSN.”
Immigration experts argue the lending model encourages illegal immigrants to stay in the country. “Access to mortgages can serve as an incentive for illegal aliens to remain in the country, especially at a time when the goal of the government is convincing illegal aliens to leave,” Ira Mehlman of the Federation for American Immigration Reform told The Daily Wire.
Some lenders have begun signaling caution. Tricolor Holdings, a Texas-based auto lender, reported that 69% of its 2023 customers were “undocumented.” A company representative said, “Due to the current environment, Tricolor shifted its focus from the no FICO borrower to a general market profile.”
In California, JVN Lending advertises ITIN loans with “no visa required” and “no social security number required.” One of its lenders reported fewer ITIN borrowers this year.
Increased enforcement under the Trump administration could add pressure. The Department of Homeland Security and the IRS signed an agreement granting law enforcement access to tax information from suspected illegal immigrants. Experts say borrowers may hesitate to seek ITIN loans if they believe applying could place their data in an ICE database.