Paying the mortgages Americans won’t

Speculating on what he would do if he were Treasury Secretary (and simultaneously Chaiman of both the Securities and Exchange Commission and the Federal Reserve Bank)  CNBC “Mad Money” host Jim Cramer:  has a simple plan for protecting banks from mortgage defaults:

“Obama must let it be known that there will be no more immigrant deportations,” “Like it or not – listen to me – so that immigrants, legal and illegal, will stop being afraid to buy homes.” Cramer referenced a study cited by CNBC “Street Signs” host Erin Burnett earlier in the day during the “Stop Trading” segment of her program. According to Burnett, the illegal immigrant mortgage payout is about 98 percent, versus a 92-94 percent range for mortgage payouts nationally.

“The home areas that are, have been most decimated are exactly where the immigrants were buying,” Cramer said. “It’s a major not-talked-about issue. By the way, the immigrants default rate is almost nil as the wonderful and fabulous one [Burnett] said to me today at 2 o’clock. These are the banks – these are the people the banks want to lend to as they will take on fourth, fifth, sixth, seventh and eighth and ninth jobs to keep their mortgages current.”