Ep. 1781 - The Hidden Reason Why Prices Are Skyrocketing
43 min
•May 18, 202612 days agoSummary
Matt Walsh examines how a Supreme Court ruling holding freight brokers liable for unsafe carriers is driving up trucking costs and reducing illegal alien employment in the industry, while also exposing how the Biden administration's FHA mortgage expansion enabled undocumented immigrants to purchase homes with minimal down payments, artificially inflating housing prices and burdening American taxpayers.
Insights
- Supreme Court liability ruling creates market-driven enforcement: brokers now self-regulate carrier safety to avoid lawsuits, achieving what immigration enforcement failed to accomplish
- FHA program expansion to non-citizens created a parallel housing market where illegal aliens qualified for 3.5% down mortgages while competing directly with American citizens for the same homes
- Government mortgage relief programs masked delinquency crisis: borrowers 90+ days behind on payments receive government bailouts rather than foreclosure, creating permanent debt traps and artificial price floors
- Immigration policy effects cascade through supply chains: housing and transportation cost increases directly attributable to foreign worker competition and government subsidy programs
- Policy reversal under Trump administration demonstrates rapid correction potential: eliminating non-citizen FHA eligibility immediately stops new foreign home purchases
Trends
Liability-driven market consolidation in trucking: smaller carriers with conditional safety ratings being systematically excluded by brokers, favoring larger established operatorsFHA delinquency rates exceeding 2008 subprime crisis levels: 14% of 8 million FHA loans currently delinquent vs. under 3% for conventional mortgagesHousing demand inflation from immigration: foreign-born population now 53 million (highest share in history), accounting for nearly all housing demand growth in some marketsFraudulent social security number proliferation: 2 million illegal aliens obtained SSNs in 2024; 75% of illegal aliens use fraudulently obtained SSNs for employmentMass deportation creating sudden housing abandonment: foreclosure inspectors documenting rapid property abandonment by undocumented residents after enforcement increasesFreight rate spike to all-time highs: flatbed and truckload spot rates hitting record levels due to reduced carrier supply and increased regulatory scrutinyGovernment welfare dependency among illegal aliens: 60% of illegal alien households benefit from at least one government program; 10 million in subsidized housing with unverified eligibilityRegional housing price acceleration: Midwest metro areas like Akron, Ohio experiencing 12% annual home price increases; Northeast up 5% in Q1 2025Mortgage balance entrapment: FHA borrowers increasingly owe more than original mortgage amount and more than home value due to payment deferrals and fee accumulationTrucking industry recovery trajectory: improved conditions for American truckers as foreign competition decreases and safety standards tighten
Topics
Supreme Court Montgomery v. Caribe Transport ruling and broker liabilityFreight broker safety standards and carrier selectionTrucking industry consolidation and entrepreneurship impactFHA mortgage expansion to non-citizens and illegal aliensHousing affordability crisis and immigration-driven demandGovernment mortgage relief programs and delinquency maskingSocial security number fraud and illegal alien employmentMass deportation effects on housing marketTrucking cost inflation and consumer price impactsFederal Housing Administration program expansion and reversalIllegal alien welfare program participation ratesHousing price inflation by metropolitan areaFraudulent mortgage applications and identity theftTruck driver safety and foreign worker employmentGovernment subsidy programs for non-citizens
Companies
C.H. Robinson Worldwide
Major freight broker in Montgomery v. Caribe Transport case; hired unsafe carrier leading to amputation injury
Caribe Transport LLC
Trucking company with conditional safety rating involved in Supreme Court case; driver caused severe injury to Sean M...
Walmart
Major retailer using freight brokers and trucking companies; Cuban national high on meth/cocaine drove truck with sto...
Costco
Major retailer that hires trucking companies through brokers to ship goods
Federal Motor Carrier Safety Administration
Government agency that assigns safety ratings to trucking companies; issues conditional ratings for higher-risk carriers
Ants Inc.
Home inspection company documenting foreclosures of illegal alien-owned homes purchased through FHA program
People
Matt Walsh
Host analyzing Supreme Court ruling impact on trucking costs and housing market effects of FHA expansion
Sean Montgomery
Trucker whose leg was amputated after being struck by Caribe Transport truck; plaintiff in Supreme Court case
Craig Fuller
Provided freight rate data showing flatbed and truckload spot rates at all-time highs; discussed broker consolidation
Elon Musk
Referenced for pointing out 2 million illegal aliens obtained social security numbers in 2024
Quotes
"All you have to do if you want to stop the constant stream of foreign truckers who are killing Americans is punish the people who are hiring the truckers. Don't take away their license that's meaningless."
Matt Walsh•~15:00
"Brokers are not just thinking once about it. They're thinking twice, three, and even four times about who they want to work with. If you're an established U.S. carrier between one and 15 trucks, you better hope to God you have a proven track record with these brokers because they're on the hook now."
Truck driver (quoted)•~12:00
"While you were doing the responsible thing and saving up $80,000 to put down on your $400,000 home, an illegal alien only had to spend around $14,000 for the same home. That's what you've been competing against."
Matt Walsh•~45:00
"American dollars should benefit American citizens and American citizens only."
HUD official (quoted)•~55:00
"Modern immigrants come here, often from the Third World, from non-Western countries, and they have a red carpet laid out for them. They are given advantages that the native citizens of the country are not given."
Matt Walsh•~62:00
Full Transcript
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That's 866-569-4711 or visit americanfinancing.net slash WALSH. You know, it's supposedly very difficult to find a talking head, a bona fide legal expert who's capable of breaking down the impact of a Supreme Court ruling in a thorough and accurate manner. Some of these commentators are paid hundreds of thousands of dollars a year for their expertise. In one case, a well-known Supreme Court analyst performed a sex act on himself on a Zoom call as we all probably remember and he still kept his job at CNN. Maybe that was par for the course for CNN Zoom calls and that's why they didn't fire him, we'll never know. Or maybe that's just how valuable these Supreme Court analysts are. You simply cannot replace them under any circumstance. And yet over the weekend, a random truck driver somehow managed to upstage all of these vaunted experts. The trucker, based on his first-hand industry experience, offered his assessment of the ramifications of the recent Supreme Court case, Montgomery versus Caribe Transport, and this case was about a man named Sean Montgomery who sustained severe and permanent injuries after his tractor trailer was struck by another truck driven by a man named Yosneil Varela Mohinat. Now to give some more background, Mohinat was a trucker working for a company called Caribe Transport LLC and the shipment he was hauling was arranged by a major broker in the industry named C.H. Robinson worldwide. Caribe Transport is a company that is used to transport vehicles and vehicles, and vehicles are typically hired by companies like Walmart or Costco to find a trucking company that can ship their goods. And in this case, Caribe Transport merely had a conditional safety rating from the Federal Motor Carrier Safety Administration, which means that they can technically operate for now, but they're considered a higher risk because they don't have adequate safety management controls in place. Qualifications, crash rate, and other factors. Why are they allowed to still operate when they're known higher risk? I don't know. And nevertheless, C.H. Robinson as the broker hired Caribe for the job, even though they should have been aware of the company's issues. And shortly afterwards, somewhere in Illinois, Mohinat veered off the road and smashed it to Montgomery's tractor trailer, which was stopped on the side of the road. Montgomery's leg had to be amputated. Now the legal issue in the case was whether the broker, in this case, C.H. Robinson, could be sued for negligence. In other words, if a broker finds an incompetent trucking company for a client and then the truck gets into an accident, can the broker be sued? Can the middleman be forced to compensate a victim in addition to the trucking company? By a unanimous 9-0 vote, the Supreme Court held that indeed the broker can be liable. And here's how the trucker broke down the upshot of this specific ruling. Listen. So I'm over here in Eden, Ohio, and there's a bunch of foreigners over here. This guy right here, the guy right next to me, all along in all these trucks. None of them can get loads out of Ohio today. And I was talking to the Emon guy right here when I was in there at the Punjabi place getting some to eat. And he said that the reason that they can't get freight out of Ohio today is because the freight brokers won't work with them anymore. Okay? Apparently, what has happened is that yesterday they had the rule, the Supreme Court ruling that found brokers could be held liable for accidents with carriers with red flags. Apparently, the trickle down effect happened like that. Okay? The brokers are just saying, no, there's a whole lot of other trucks. We don't need you. We're not going to use you no more. Okay? I was looking up at some of these DOT numbers to these guys, and they do have a pretty substantial track record of unsafe behavior, accidents, high out-of-service rates, things like that. So guys, here's what I got to say. This is going to be changing in a hurry. Brokers are not just thinking once about it. They're thinking twice, three, and even four times about who they want to work with. If you're an established U.S. carrier between one and 15 trucks, you better hope to God you have a proven track record with these brokers because they're on the hook now. They're on the hook in ways that they've never experienced before. So it really is this easy. All you have to do if you want to stop the constant stream of foreign truckers who are killing Americans is punish the people who are hiring the truckers. Don't take away their license that's meaningless. They'll just hide behind another shell company where every single employee is named Kumar and everyone has the exact same birthday. But if you financially destroy everyone who hired an incompetent foreign truck driver, then the roads will get a lot safer very quickly. And that's what we're seeing right now. Nobody wants to hire a trucking company that hires illegal aliens who can't speak English or read the road signs. Now of course, it should not have taken a Supreme Court ruling to get us to this point. Congress should have acted sooner. All the same, it's a victory that we should celebrate. About a year ago, if you remember, we did several shows back to back about all the foreign truck drivers, many of them from India who wiped out entire families in the United States and Canada. We showed the videos of the truckers who were on their cell phones while they were driving only to crash into the back of stopped cars and kill everybody inside. In this case, a grandmother and her grandchild were killed. And most of the time, truckers who commit these crimes aren't punished to any significant degree. A Canadian trucker who blew a stop sign and killed 16 people, wiping out an entire junior hockey team, was paroled in five years for killing 16 people. They aren't even deporting him from the country. And then of course, there were the many cases in the United States, including this illegal U-turn on the Florida Turnpike that resulted in three fatalities. The driver was a legal alien from India. We stopped covering these crashes in detail after a while because there were simply too many stories to cover. It's similar to how in the early days of the Russian Revolution, newspapers stopped reporting on bombings and assassination attempts. They were happening so often that the newspaper editors lost track of them. And here's just one recent example of how devastating these crashes are and how quickly they can happen. This report aired just a couple of days ago on CBS Watch. This is what Ohio State troopers confronted, responding to a crash outside of Cincinnati the day before Christmas 2022. Can you hear me? A tractor trailer heading north on I-75 crossed the median and slammed into two vehicles. They were texting me throughout their drives, seeing how close they were, where they were, and then I heard nothing. Amy Ross had planned to host Christmas for her family that year. In those two cars, her mother Kimberly, a sister Lauren, another sister Karen, and brother-in-law, Jeremy Baney. That's when we got in touch with the police and the police said they're all gone and there was nowhere to go. There was no hospitals to go visit them at. They were just gone. It's like this can't be real. The driver of the truck, a Cuban national with a green card, had left Miami two days earlier in a truck that police said had a stolen federal registration number. Empty, where'd you deliver at? Yeah, I'm delivering warmup. A toxicology report showed elevated levels of cocaine and methamphetamines in his system. After the crash, the driver fled back to Cuba. How does a guy like this end up hauling goods for Walmart? I don't think that this driver or many others like him end up on the road, but for the broker, turning a blind eye. So he's a Cuban national, high on meth and coke, driving a truck with a stolen registration number. And after wiping out a family, he's allowed to flee the country. The authorities in Ohio didn't even place him in custody. So you're making sure that your license gets renewed on time and you're making sure that your title and registration are up to date. You're following all the rules. And in the meantime, foreigners are driving 40 ton 18 wheelers without any documentation for themselves or for the truck. And even when they kill several people, they don't suffer any consequences whatsoever. This is why new certification standards and stricter licensing and all that don't really accomplish anything. States like California don't enforce any of the regulations and DA's, even in red states like Ohio, aren't actually putting any of these people in prison. Without any incentive to follow the law, the foreigners aren't going to follow the law. And that's why this Supreme Court ruling is so significant. For the first time, the brokers feel like they might be liable if they hire an illiterate foreigner with a terrible safety record. Now it's true that partially as a result of this ruling, the cost of freight is going up dramatically. This is a chart from Craig Fuller at Freight Alley. And it shows that flatbed trucking rates in this country have just hit a new all time high. This is a metric that reflects industrial sectors like heavy machinery and construction. Meanwhile, here's the truckload spot rate, which is associated with freight and retail. It's measuring the amount of money that shippers are paying to move freight on the spot market. It's showing the real time spending rather than pre-existing contracts. As you can see, we're basically at an all time record. Another six cents a mile and we're there. We're at the all time record. Now it's true that according to data from the Fed, year over year industrial production is up by about 1.4%. So we're producing slightly more than we were last year. But obviously that's not going to explain such a massive jump in freight costs. What does explain the jump, at least to a meaningful degree, is the fact that high quality truckers are now in demand. And as a result of this Supreme Court ruling and the increased regulatory scrutiny that's been facing trucking companies for the past year or so, it's a very good time to be an English speaking, competent American trucker in the United States who knows how to drive a truck. On the other hand, if you're a shady broker or trucking company, it's never been more difficult to obtain insurance or to find a foreign trucker who is not going to kill an entire family and bankrupt your company in the process. And we do have to acknowledge that as a result of the Supreme Court's ruling and the increase in truckload rates, there will inevitably be a slight increase in the cost of some goods. Higher transportation costs are always passed along to the consumer, as we all know. And there are concerns that these large jury verdicts might have a damaging effect on the trucking industry as a whole watch. We need to make sure that our partners are solvent. And it's one of these cases like these nuclear verdicts or a thermonuclear verdict happens. There is no way a broker or most brokers can survive this. I think you're right, Craig. I think you see consolidation and growth among the big motor cares and among the big, big brokerages. It's going to crush entrepreneurism because if you are a motor carrier and you have a conditional safety rating, who in the world would book freight with you? How in the world after this decision would any broker want to do that? What does it take? It incentivizes you to go make another motor carrier. Matt, what does it take to get a conditional safety rating? Like, how do you earn a conditional safety rating? A lot of it has to do with the inspections that you have. So if you've gotten some inspections, you come clean, you have some things that have made you get an intervention status. The FMCSA tries to audit every motor carrier within the first 12 months. And when they try to get in there and try to understand what your business is like, if they find things that aren't great, they're going to say, here's what you have to improve. Here's the plan. There's a lot of industry consultants that help you navigate this. But a conditional safety means you are legally authorized to hire, to haul freight. You can do this. But just because the government says you're safe to do it or you're authorized to do it, doesn't mean a party like a broker wants to work with you. And the CHKS, this Montgomery case, one of the stories about this was that the motor carrier that was selected had a conditional safety rating. And so it said, I've done what I'm supposed to do. I'm generally considered at what I need to be at, but it doesn't matter because you've made a selection issue. And again, the only time you know these motor cares are truly unsafe is when something catastrophic happens. When 30% of vehicles being inspected or failing, what in the world would you do if 30% of all motor cares are unsafe just because they're not meeting out of service criteria? This is a different world. And again, it's the same business. It's just different rules. The brokers are learning that the big asset folks have been dealing with since the very beginning. We've always had unlimited liability. And now that's going to get passed on to some of these larger 3PLs. So he's attempting to make an intellectual argument that nobody has patience for anymore. At a certain point, when you've seen enough videos of American families getting crushed inside their cars like tin cans, suddenly you stop caring about the impact of lawsuits on entrepreneurialism in the trucking industry. That's not to say that the trucking industry shouldn't reward entrepreneurs. That's not to say that we need more lawsuits in our society as a general rule, but we're at the point where there's no other option. You know, if we had immigration controls in this country, if Joe Biden and Barack Obama had never been president, then maybe we wouldn't need these lawsuits. If prosecutors bothered to enforce the law instead of releasing these Cuban nationals and letting them flee the country, then maybe we wouldn't need the lawsuits. But in the world we actually live in, something had to change. Let's take a look at this graphic from CBS News. Large truck collisions killed 5,300 people in 2024 in the United States. That is a 57% increase from 2009. Every year, thousands of people are getting killed by 18 wheelers. And the problem is only getting worse and more infuriating. And the other aspect of the story, which needs to be mentioned at every opportunity, is that these foreign truckers, even when they aren't killing Americans, are taking jobs that Americans need. You know, truck driving is the number one job for people who don't go to college. It's the biggest profession in many states, often providing a respectable middle class life, especially in more rural areas. And for many years now, truckers and many of the people who own trucking companies have suffered as a result. The problem was compounded by the post COVID crash when people stopped buying as many goods and started putting their money into services and experiences. All of a sudden, fuel prices were up, demand was down. Foreign truckers were flooding the system. And people who had invested their whole lives into trucking found themselves broke or close to it. This is just one example of what I'm talking about. This is from a small fleet operator in South Dakota, quote, the struggle has been very real these last two years and none stronger than 2025. It reminded me of my youth on the family farm in the 80s. Dad got the new tractor he bought two years prior repossessed when the market shifted. This was before the government gave you a kickback if you lost money in farming, mind you. The lesson learned for me was never give up. I searched my soul in the worst moments of last year. My wife and I arguing about money, not paying ourselves, working for nothing several months in a row. All of our savings completely gone by the fall of 25. I haven't been this cash strapped since I was a young man out of high school. We thought real hard about giving up this new environment we find ourselves in means serious change for the transportation industry that has always operated on trust. We're becoming a very low trust society. Therefore, we must adapt procedures and tactics become more open and honest with sharing who we are and how we accomplish the mission. This is a note of optimism in an industry that for a very long time has been in a very bad state. Things will still be in flux. Self driving trucks are another big change that's coming soon. But the general trajectory is now positive. And since trucking is one of the most important industries in the entire country, that's a big deal. One of the more expensive habits people have is buying the cheap version of something first, realizing it doesn't work and then paying for the real version afterward. Everybody does it at some point. You buy the off brand phone charger because it costs eight dollars less. Two weeks later, overheat stops working and you buy the actual one that you should have bought in the first place. Same logic applies to your house. 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Now, at the same time, trucking is important as it is, is just one of many, many areas in which illegal aliens are making our lives worse. And doing it in ways that we don't, many of us anyway, we don't think about, may not even be aware of. Housing is another industry that's been tremendously affected by the foreign migration. Again, in ways and to an extent that most people don't even realize. And also again, not to be too optimistic on this show, I wouldn't want to make that mistake, but the trajectory very recently is starting to be positive. So, admittedly, this change has been easy to miss. Think of it this way. You know, whenever a secretive authoritarian regime is removed from power, a lot of fascinating and often morbid discoveries are usually made in short order. Recall the hidden torture chambers that were uncovered by U.S. Marines and Saddam's palaces after the invasion of Iraq or the closely guarded Chernobyl protocols that were uncovered after the fall of the USSR. We're talking about invaluable material for historians, scientists, anthropologists, everybody, you know, the kind of stuff that changes your perspective on world events. Put simply, the remnants of a hostile, anti-American government are always worth exploring because you never know what you're going to find in there. And this is a phenomenon that after four years of rule by the Biden administration, applies to the United States just as well. Deposing the Biden regime has led to a raft of important revelations that if Kamala Harris had won, would have been kept secret and made worse. But now the Democrats have mostly been ousted from the federal government. Truly astonishing discoveries are taking place all over the country, particularly in the suburbs. After years of misdirection and outright lying, we're finally discovering the extent of the Biden administration's treachery. And there's really no other way to describe it. And many of these discoveries, remarkably enough, are being made by inspectors and mortgage officers who are deployed by banks to check on homes that are in foreclosure. Here's the trend that these inspectors, the modern day Marines storming the Iraqi palace, are noticing in America's suburbs. Watch. Is this going to become a trend? This is another home where I've been told you undocumented. I've been told you just left first time here. And while this stuff's still here, looks like they left in a hurry. Not sure what happened, but again, even some of the pantry stuff is still here. Left food behind and all. Doesn't make any sense. Very hard to tell exactly what was going on, but home completely unlocked. Looks like everything left behind. It was just informed that this house was a legal owned and they self deported. And it's supposed to be full of furniture. It's not full, but there's a TV moving box. Who took all the supposed furniture that's supposed to be here? I don't know. And I told them that because I've been here. And it's not full of furniture like they said. I mean, there's that. So these videos are from Ants Inc. who runs an inspection company. He's posted dozens of videos like this one. After you watch enough of that, enough of them, it's hard to dispute his observation that indeed illegal aliens in Texas are suddenly abandoning their homes in very large numbers. And sometimes they take the furniture with them. Sometimes they don't. In fact, in that last home, you saw they left their fish tank behind and all the fish died of horrible death as a result. And the assumption is that these people either fled in a hurry or they were deported. Now, what's interesting is that when this inspector is dispatched to these homes, the bank informs him that they're believed to be owned by illegal aliens. And that raises the obvious question. How exactly does the bank know that illegal aliens were living there? In a separate video, Ants Inc. explains what's going on. Watch. So, they were still in the pantry. They grabbed whatever valuables they could, left everything else behind. These are foreclosures. So these are homes that were bought using FHA, guaranteed by the government for undocumented people. Last month, over 252,000 people were deported in Texas alone. So all of a sudden, we're starting to see the effects now. I did another one yesterday. They come tagged as possible undocumented immigrant. Furnitures there, fish tank, dead fish. They left in a hurry. So he says the illegal aliens were using FHA, guaranteed by the government to buy these homes. And that's the key. It's how the bank knows that the homeowners are probably illegal aliens. And you see, it turns out that under the Biden administration, the federal housing administration began insuring mortgages by private lenders to non-citizens. Now, these are mortgages with extremely small down payments, around 3.5%, along with 30-year terms. And it's fine if the borrowers have a 500 credit score and can't meet any minimum income threshold at all. These loans are intended for low-income Americans, but instead, foreigners, people who are not even citizens, are getting them. Yes, non-citizens, even if they didn't have a steady income or collateral or good credit, have been walking into new homes by putting only 3.5% down. So while you were doing the responsible thing and saving up $80,000 to put down on your $400,000 home, an illegal alien only had to spend around $14,000 for the same home. That's what you've been competing against. Now, the risk of default is obviously extremely high on these 3.5% mortgages, so the bank would never grant them in normal circumstances. But when the government will take care of any defaults, the banks have no reason not to approve the mortgage. And that's exactly what's been happening. Officially, the Biden administration expanded the FHA program to H-1B visa holders and so-called asylum seekers and DACA recipients, meaning illegal aliens who arrived in the United States when they were young. So in effect, every illegal alien could easily access the program. They all just called themselves asylum seekers and that's it. They know the words to use in order to concoct a fake asylum claim and then once they do that, they're able to qualify for a loan. Now, the one requirement that you need a social security number to get one of these loans is not a hurdle at all. As Elon Musk has pointed out, 2 million illegal aliens obtained a social security number from the government in just one fiscal year 2024, they weren't vetted at all. The Biden administration simply awarded social security numbers to anyone who had a work permit or claimed to have a work permit. And additionally, as the Center for Immigration Studies has reported, 75% of illegal aliens use fraudulently obtained social security numbers to get jobs. And these SSNs were either stolen or handed out by the Biden administration. And the effect of this policy was that Americans were being forced to subsidize homes for illegal aliens. And of course, all the new competition from these illegal aliens also led to an increase in the average price of new homes, as it was destined to do. This chart here illustrates just how quickly the FHA program exploded. Once the Biden administration opened the floodgates to illegal aliens and foreign workers, it tracks the percent of FHA mortgage locks by non permanent residents. A mortgage lock is an agreement where an interest rate is guaranteed by the lender as part of the closing process. Basically, it means that someone is using the FHA program to buy a home. Now, and surprisingly, once non citizens were allowed to apply, the FHA program exploded. In 2018, the share of non permanent residents who participated in the program was 0.5%. By 2025, it was 6%. That's a 12 fold increase. Now, it's not to say the Biden administration is solely to blame here. Obama was the first to greatly reduce the standards for qualifying for these loans, but the trend clearly accelerated in the last 48 months. Instead of benefiting low income Americans, which was supposed to be the point, the FHA program has increasingly benefited foreigners. And in many cases, these people can't afford homes. Quoted 2007, 35% of new FHA borrowers had debt income ratios above 43%. By 2020, 54% did. The FHA loan portfolio is far riskier than it was before the 2008 housing crisis. 79% of FHA first time borrowers have a month or less in financial reserves. Not enough to make mortgage payments if their household expenses rise. No surprise, many are missing payments, especially recent borrowers. About 7.05% of FHA mortgages issued last year went seriously delinquent 90 or more days when a payment is due within 12 months. That's more than at the 2008 peak of the subprime bubble. Under the guise of COVID relief, the Biden administration masked the growing troubles in the housing market by paying off borrowers and mortgage services to prevent foreclosures of the 52,531 FHA loans last year that went seriously delinquent. Within their first year, only nine resulted in foreclosure. So in other words, even when these foreign borrowers miss several large payments, for example, five $4,000 monthly mortgage payments, which is the example the journal uses, they still don't lose their home. Instead, the government wires cash to the loan servicer to cover the shortfall. And in turn, the loan servicer adds the missed payments and any applicable fees, of course, to the balance of the loan. And the cycle repeats endlessly. The mortgage balance continues to grow. The illegal alien continues to miss payments, which are growing by the month. But the lender is not worried because the government will just keep paying out. Quote, one result is that many FHA borrowers owe more than their original mortgage and more than their homes are worth. They are essentially trapped in their homes, even if they want to sell and move. Another result is that home prices keep increasing because borrowers who don't pay their mortgage and never should have qualified for loans can't get foreclosed on or be forced to sell their homes. Getting foreclosed on these days is like flunking out of college. It takes effort. You have to reject repeated offers for mortgage relief. So the problem is hitting homeowners from multiple directions. First of all, the illegal aliens are in the market competing for homes that they can't afford. Naturally, that raises the cost of buying a home. And secondly, once the aliens are living in these homes, they're almost impossible to evict. And yet, even with all these protections, which you're paying for, an extremely large number of these illegal aliens are delinquent after qualifying for an FHA loan. According to the latest data, a grand total of 14% of the 8 million FHA home loans are currently delinquent. I'll say that again. 14% of the 8 million loans are delinquent. That means more than 1 million FHA borrowers are currently behind on their payments. They're past due by 30 days or more. By contrast, the delinquency rate on conventional mortgages, ones where the government is not ensuring the loan to encourage more foreigners to come to the United States, is well under 3%. Now, these are not academic points. The existence of this program and the way the Biden administration expanded it has made it more expensive for Americans to own homes considerably. FHA is one of the main reasons why in more than 70% of 235 major metro areas in the United States, home prices went up in the first quarter of this year. The National Association of Realtors reports that the national median single family existing home price rose to $404,000 in the first quarter, with home prices in the Northeast rising by 5%. But the Midwest, home to a growing Somali community, wasn't far behind. The Midwest, known for its greater affordability, followed with nearly 4% in annual home price increases in the first quarter. Metro areas like Akron, Ohio led the nation for the highest jump in annual home prices in the first quarter, climbing 12%. So it's all part of a larger trend that's impossible to avoid. As the U.S. Department of Housing and Urban Development has found, quote, the foreign-born population now stands at more than 53 million individuals, making up the highest share of the American population in history, this immigration driven increase in households contributed to a significant increase in housing demand, thus driving up housing prices. In fact, in some markets, immigration has accounted for nearly all of the increase in housing demand in recent years. Now, needs to be mentioned that in addition to subsidized housing, these people are getting everything else subsidized to their food, their education, everything. According to the Center for Immigration Studies, roughly 60% of illegal alien households currently benefit from at least one government welfare program, and nearly 10 million people living in public and subsidized housing haven't shared enough information with the government to determine if they actually meet the criteria to be housed there. So we can assume that most of their housing costs are fraudulent also. But again, there's a positive trajectory here. The Trump administration has ended this expansion of FHA loans, which means that no more non-residents will be getting these loans. Watch. We eliminated non-permanent residents eligibility for FHA-insured mortgages, and we are auditing public housing authorities to ensure taxpayer dollars don't support illegal aliens. American dollars should benefit American citizens and American citizens only. By focusing on our core mission, HUD provided a pathway for home ownership and supported housing affordability for more than one million Americans through FHA and GenieMate. We also take stewardship very seriously, so we're cracking down on waste and fraud and abuse. Our Office of the Chief Financial Officer uncovered more than $5 billion in potential payment errors over $50 billion in total rental assistance for the fiscal year 2024, and that includes money that went to nearly 30,000 dead people. That is ludicrous. It's ridiculous to even think or talk in such a way. It's a violation of our sacred trust to American taxpayers, and it has to end, and it will. Now, it's crazy we even have to applaud this. I mean, it's the bare minimum of what a competent pro-American government would do. Of course, we shouldn't subsidize foreigners who want to steal our homes. What kind of political party would say otherwise? How can we coexist with them? And how can we take anyone seriously when they claim that immigrants in the modern day are just like our ancestors who migrated here centuries ago? It's not just that they aren't the same. They aren't similar in any way whatsoever. Modern immigrants are in an entirely different category. It's a different category of thing completely. Our ancestors came here and built a civilization from scratch. Modern immigrants come here, often from the Third World, from non-Western countries, which is another major difference, and they have a red carpet laid out for them. As we see in the case of housing, they are given advantages that the native citizens of the country are not given. They are coddled and cared for. They're not here to build. 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And now that those effects are finally being exposed and curtailed, we have to make sure that a future Democrat administration can't simply undo this administration's accomplishments. So bankrupt the criminal trucking companies, throw the foreigners getting the 3.5 percent mortgage rates out of the country, and ensure that American homes and American highways are used exclusively by the people they are intended for. Americans. I'll do it for the show today. Thanks for watching. Thanks for listening. Talk to you tomorrow. Have a great day. Godspeed. Martin Luther King Jr. is an American icon, widely considered one of the greatest Americans who ever lived. A man who had a vision for a colorblind society that post-racial America. He had a dream. It's just not the dream you thought it was. Were his true aims a colorblind society or something far more radical? Who bankrolled him? What unfolded behind the scenes in Birmingham, Alabama in 1963? Was civil disobedience actually peaceful? We wanted to show you a clip of the I Have a Dream speech. But according to our lawyers, we can't. In fact, King's family has made a lot of money suing media outlets. They want to silence critics like us. What they're doing makes it very difficult to judge Martin Luther King Jr. not by the color of his skin, but by the content of his character. Is America today stronger, more unified, and racially equal than before King's rise? These questions demand answers, and as Americans, we are entitled to a full accounting of the Civil Rights Movement and its consequences. King's movement fundamentally transformed our country and our system of government. I speak as a citizen of the world. Each day the war goes on, the hatred increases, though the cause of evil prosper. First part of our two-part special on the Civil Rights Movement, a new constitution available now on DailyWirePlus. Go to stamps.com and use code podcast to try stamps.com risk-free for 60 days. Don't wait! 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