Whites and Asians need not apply.
Bank of America on Wednesday announced a new mortgage home loan program for first-time homebuyers.
But only blacks and Hispanics will be eligible.
Blacks and Hispanics will be able to apply for a zero down payment, zero closing cost mortgage with Bank of America’s new lending program in select cities.
There will be zero mortgage insurance (loans over 80% loan to value typically charge borrowers mortgage insurance fee) and no minimum credit score!
What could possibly go wrong?
“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 release. “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.”
Did Bank of America learn nothing from the 2008 housing market crash?
NBC News reported:
Bank of America said it is now offering first-time homebuyers in a select group of cities zero down payment, zero closing cost mortgages to help grow homeownership among Black and Hispanic/Latino communities.
The option will first become available in certain neighborhoods in Charlotte, Dallas, Detroit, Los Angeles and Miami. The new mortgage, called the Community Affordable Loan Solution, aims to help eligible individuals and families obtain an affordable loan to purchase a home, the bank said.
The loans require no mortgage insurance — the additional fee typically charged to buyers who put down less than 20% of the purchase price — and no minimum credit score. Instead, eligibility will be based on factors like timely rent payments and on-time utility bill, phone and auto insurance payments. Prospective buyers must also complete a homebuyer certification course provided by Bank of America and federally approved housing counseling partners before they apply for the loan program, the bank said.
“During the pandemic, rising home prices and low housing supply have disproportionally impacted Black households more than any other race/ethnic group,” the NAR said in a report. White households are now 40% more likely to be able to afford to buy a home compared with Black households, the association said.
How is this even legal?
How in the Hell is this not “Redlining” (Illegal Preferential Lending)???
Six months ago, I closed my BOA accounts and surrendered my credit card because I could never get anyone to answer the phone at BOA. I needed help with a fraudulent charge, and couldn’t get anyone to speak with me. It looks like I made the right decision to leave such a “woke” institution that discriminates against poor white people who need just as much help as poor black and brown people. I am so sick and tired of our world being divided by institutional racism against white folks.
And should they be allowed, many of these, with no skin in the game, will default after some period of time, just as was done prior in the mortgage game! Then guess who will have to bail out the banks? AGAIN!??
Let’s see do they to have a JOB or pay there mortgage with an welfare EBT card for mortgage?
Discriminatory lending practices they are practicing. Let the lawsuits begin and hopefully people will win enough from this bank to pay off their home loans courtesy of the woke liberals at BofA. That would be a hoot.