American taxpayer or US corporations are left to pick up the tab left behind by illegals…

Gary, A lot of these non-GSE grade papers were palmed off to foreign banks. They eagerly bought any junk that was marked AAA by the rating agencies. I don't think they will again buy US mortgage for a long time!

So how does an 'undocumented' person go about getting a loan?

I suspect a friendly broker sold one of the no-doc loans. No-doc loans to no-doc borrowers seems to be a perfect match!