According to an article released this afternoon on the HousingWire website, HUD, FHA, and Fannie Mae are spreading the word out to lenders
that they are NOT denying mortgages to Deferred Action for Childhood Arrival (DACA) recipients, also known as Dreamers.
This comes as a relief and great news to many of us who have had our Dreamer clients turned away by lenders since early 2018 after the current administration made some dramatic changes to immigration policy that had been implemented by the previous administration. This clarification comes after writer Dani Hernandez exposed that these entities were quietly denying mortgage applications for DACA recipients in an article published in September 2018.
“The Department wants to be very clear that it has not implemented any policy changes during the current Administration, either formal or informal, with respect to FHA eligibility requirements for Deferred Action for Childhood Arrivals (DACA) recipients,” HUD said in a letter to Senator Robert Menendez in December. “HUD has longstanding policy regarding eligibility for non-U.S. citizens without lawful residency. Those policies have not been altered.”
On the Fannie Mae front – which securitizes loans commonly referred to as “conventional” – they state that lenders and not Fannie Mae determine whether an individual is legally present, and decide what documentation they will request to make that determination.
They are recommending that lenders review their guidelines and and judicial decisions to better evaluate whether a current DACA beneficiaries’ status is consistent with being ‘legally present’ in the United States.