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After Denying It, HUD Declares Federal Housing Administration Is No Longer Helping DACA Recipients With Housing Loans

In a blow to Deferred Action for Childhood Arrivals (DACA) recipients, the U.S. Department of Housing and Urban Development says young undocumented immigrants will be ineligible for federally backed housing loans. The news comes after months of confusion about the policy for immigrants who were brought here as children. Back in April, Secretary of HUD, Ben Carson denied this at a congressional testimony but a Housing and Urban Development (HUD) official said last week DACA recipients are indeed not eligible for Federal Housing Administration (FHA) loans.

Federal Housing Administration (FHA) loans are intended to make homeownership more attainable for those with lower credit scores and incomes.

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“Because DACA does not confer lawful status, DACA recipients remain ineligible for FHA loans,” Len Wolfson, a Department of Housing and Urban Development (HUD) official, wrote in a letter to California Democratic Rep. Pete Aguilar last Tuesday. “Determination of citizenship and immigration status is not the responsibility of HUD, and the Department relies on other government agencies for this information.”

The latest declaration is a reversal from HUD’s previous statements to questions about whether FHA is backing mortgages for DACA recipients. The Trump administration has been trying to rescind the Obama era policy but has been blocked by a federal judge from doing so.

“I’m sure we have plenty of DACA recipients who have FHA mortgages,” Carson said at a congressional hearing in April. “I would simply say that I have instructed everyone to follow the laws of the United States with regard to DACA, with regard to anyone who is an immigrant or a potential immigrant to this country, and as long as you continue to follow the laws you will have my approval.

In the letter, Wolfson put the blame on the Obama administration for the policy and its regulations. He references former Homeland Security Secretary Janet Napolitano’s letter from 2012 that DACA “confers no substantive right, immigration status or pathway to citizenship” for recipients.

Even after Carson said that “plenty of DACA recipients” were receiving FHA-backed loans, lenders were being told to do the exact opposite.

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According to Buzzfeed News, After Carson denied the notion that DACA recipients weren’t being approved for FHA loans, many reported that they were still being denied help.

“The explanation we received from HUD is inconsistent with the realities on the ground and statements made by Secretary Carson to members of the Appropriations Committee, and it does nothing to clarify the confusion created by the agency’s inconsistent policies,” Aguilar said in a statement to BuzzFeed News last Thursday.

The FHA has never stated that receiving a loan means requiring citizenship or lawful status.

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DACA recipients had previously never faced problems when applying for federally-backed housing assistance. FHA has also never had a clear policy that pertains to DACA recipients. According to the FHA’s single-family housing handbook, a housing guide the agency refers lenders to, notes that an Employment Authorization Document, which DACA recipients possess, is necessary “to substantiate work status” for noncitizens and qualifies them for such loans.

Under the Obama administration, HUD was supporting DACA borrowers under these circumstances. Yet the Trump administration has clearly enforced these guidelines differently.

“We know that DACA recipients have received these loans in the past, and it’s shameful that HUD is allowing the president’s anti-immigrant agenda to dictate housing policy,” Aguilar told Buzzfeed News.

This news comes out as the House Financial Services Committee last Wednesday passed a bill, Homeownership for DREAMers Act, that guarantees DACA recipients have the right to obtain federally backed mortgages.

This means recipients also can not be denied based on their immigration status. The bill is set to go to the House floor for approval, but many believe it’s unlikely the bill will pass the Republican-held Senate or be signed into law by the president.

READ: With Democrats Now In Charge Of The House, What Does That Mean For DACA Moving Forward?

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