Q.Can borers fatally affect a paperbark tree and make it dangerous?
The tree is located close to the home and appears to have been attacked by borers and or white ants because there are many holes in the trunk. We are concerned that it may have been weakened and fall on the house. It appears the roots have caused a cave in near the sewer. A friend said it may be wasps but we have seen none.

Certified GKH Gardening Expert
On a general basis, when you began to see trunk damage the issue has been going on for awhile. It is often easier to replace the tree than treat it for borers. I can't speak to the safety of your tree and would recommend you have a qualified Arborist look at the tree.
https://www.gardeningknowhow.com/ornamental/trees/tgen/tree-borer-insects.htm