Posted on 09/05/2022 3:41:20 PM PDT by grundle
Bank of America is offering zero down payment mortgages with no closing costs for first-time homebuyers in certain Black and Hispanic neighborhoods in a new program designed to chip away at inequality in the housing market.
The new loan, launched this week, requires no minimum credit score nor mortgage insurance, which lenders typically charge when borrowers put less than 20% down.
Instead of a traditional credit score, first-time homebuyers will be evaluated based on their history of making timely payments for rent, utilities, phone service and auto insurance.
Bank of America said the new mortgage, known as the Community Affordable Loan Solution, is available in certain census-designated markets including Black and Hispanic neighborhoods in Charlotte, Dallas, Detroit, Los Angeles and Miami.
The bank said borrowers do not need to be Black or Hispanic to qualify. Eligibility is based on borrower income and home location.
“Homeownership strengthens our communities and can help individuals and families to build wealth over time,” AJ Barkley, head of neighborhood and community lending for Bank of America, said in a statement. “Our Community Affordable Loan Solution will help make the dream of sustained homeownership attainable for more Black and Hispanic families.”
(Excerpt) Read more at cnn.com ...
Maybe you should have done this BEFORE a 30 year loan hit 6.5% interest?
Denying a loan to an unqualified POC is “racial profiling.”
Approving a loan to an unqualified POC is “predatory lending.”
See how that works?
Is this not PRECISELY what caused such a catastrophe in 2008??
I had to check the date. Is this article from 2005?
Some people are just born to stay in apartments/government assited housing. That’s it. If you want no down payment, go spend some time in the military and use a VA loan.
CRA scorces must be a little low. Or they are looking to buy some banks and want to make sure they get approved. When you are looking to make billions, losses of double digit millions on some bad mortgages don’t even move the needle. And you can always create CMOs and push the risk to someone else. Just let an insurer collect a few basis points to cover the risk.
I mean, it’s been almost a decade and a half since the last time this stunt was pulled. No one remembers that far back.
Deja vu 2006-2007.
Pop goes the bubble.
BOFA is not worried about the CRA (Community Reinvestment Act) caused the collapse of the real-estate market around 2008.
Now, they have the deep well of the government ready to rescue them. There are trillions of dollars ready, even if there really aren’t those trillions. After all, the national debt is a myth, since, nobody expects that it will ever get paid back, so adding to it is a no-brainer.
I’m trying to sell a refurbished rental house. I asked one former and one current black renter, both of whom are well employed, and they both expressed interest. They’re making plenty of money and each is on the hook for new cars to several family members. Not older used cars that they could have bought for cash. No. They bought their kids new cars. Neither can buy the house. From conversation, they don’t have even a few hundred bucks stored up. There’s a loan association in town that says there are special loan rules to help blacks buy homes. They don’t even qualify there.
BOA is a crapshoot.
A repeat of the 2008 Dodd-Franks mortgage crisis? Oh, great.
I’m upset that they won’t tack on PMI insurance with less than 20% down though. That seems a little arbitrary, and lots of current homeowners paying PMI may be a little angry about the double standard. Maybe BofA should rethink this.
“designed to chip away at inequality in the housing market.”
Of course lowest unemployment in recorded history across the board under Trump was doing just that.. without government meddling.
Shhhhhhhh!
Time to short some BOA stock!
Great! The people most likely to default on their mortgages don't have to pay mortgage insurance.
The world turned upside down.
But I guess that's OK, because the privileged white aholes in the know were able to get undeclared loans to pay the 20% down to avoid PMI and no one seemed interested in looking more carefully into their finances to figure this out.
Criminality at all levels.
Bullcrap. If a white person walks into a B of A and tries to get one of these loans they will be turned down flat. Maybe they won't say, "Sorry, you are the wrong color", but they will be turned down for sure. This loan program is a racial handout, pure and simple.
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