In Apparent PR Stunt Racist Suspects at Bank of America Unveil ‘Zero Down Payment Mortgages' for Black/Latino Areas. Applicants Must Show Perfect Rent/Utility Bill Payments thru Govt COVID Lock Downs
/
From [HERE] Bank of America is offering mortgages for first-time homeowners that do not require down payments, minimum credit scores or closing costs in a program that aims to boost homeownership rates among first-time Black and Latino buyers.
Under the trial program, which was announced on Tuesday, Bank of America will offer loans to people in certain predominantly Black and Hispanic neighborhoods in Charlotte, N.C.; Dallas; Detroit; Los Angeles and Miami. Eligibility for the program, which is called the Community Affordable Loan Solution, is based on income and location, and requires no mortgage insurance.
Bank of America today announced a new zero down payment, zero closing cost mortgage solution for first-time homebuyers, which will be available in designated markets, including certain Black/African American and/or Hispanic-Latino neighborhoods in Charlotte, Dallas, Detroit, Los Angeles and Miami. The Community Affordable Loan Solution™ aims to help eligible individuals and families obtain an affordable loan to purchase a home.
The Community Affordable Loan Solution is a Special Purpose Credit Program which uses credit guidelines based on factors such as timely rent, utility bill, phone and auto insurance payments. It requires no mortgage insurance or minimum credit score. Individual eligibility is based on income and home location. Prospective buyers must complete a homebuyer certification course provided by select Bank of America and HUD-approved housing counseling partners prior to application.
This new program is in addition to and complements Bank of America’s existing $15 billion Community Homeownership Commitment™ to offer affordable mortgages, industry leading grants and educational opportunities to help 60,000 individuals and families purchase affordable homes by 2025. Through this commitment, Bank of America has already helped more than 36,000 people and families become homeowners, having provided more than $9.5 billion in low down payment loans and over $350 million in non-repayable down payment and/or closing cost grants. To date, two-thirds of the loans and grants made through the Community Homeownership Commitment has helped multicultural clients to achieve homeownership.
Bank of America also has a 26-year relationship with the Neighborhood Assistance Corporation of America (NACA), through which the Bank has committed to providing an additional $15 billion in mortgages to low-to-moderate income homebuyers through May 2027.
According to the National Association of Realtors, today there is a nearly 30-percentage-point gap in homeownership between White and Black Americans; for Hispanic buyers, the gap is nearly 20 percent. And the competitive housing market has made it even more difficult for potential homebuyers, especially people of color, to buy homes.
“Homeownership strengthens our communities and can help individuals and families to build wealth over time,” said AJ Barkley, head of neighborhood and community lending for Bank of America. “Our Community Affordable Loan Solution will help make the dream of sustained homeownership attainable for more Black and Hispanic families, and it is part of our broader commitment to the communities that we serve.” [MORE]
Banks have contributed to racial gaps in homeownership rates by approving fewer loans with less favorable terms for Black applicants than for white borrowers with similar credit profiles, Dr. Ray said. It’s important, he added, that more financial institutions take steps like the one Bank of America has announced to correct the inequalities of the past and to be part of the solution.
@Armanwalker said Black home ownership rates remain at our near all-time lows and that the real-estate gap has been increasing. “These are not predatory loans,” @Armanwalker said.
A Twitter user called @Benhem612 raised the question of whether the Bank of America program will be combined with protections to prevent homes from being sold for “pennies on the dollar.”
Twitter user @CamTsn compared the program to Ninja loans, which are loans provided with little or no attempt to investigate the ability to repay. “What a great idea, offer Ninja loans 2.0 at the top of a housing bubble,” @CamTsn said. “I am absolutely sure this will not negatively impact minorities and their communities.” [MORE]
