Superbank Bank of America recently announced that they will be offering zero-interest mortgages with zero percent closing cost mortgage products, to help minority families get off of the ground.
However, applicants do not have to be considered a minority to qualify.
These loans also do not require a minimum credit score neither a form of mortgage insurance.
The Community Affordable Loan Solution, as it is called, will be made available in limited areas with higher Black and Latino populations, namely Miami, Dallas, Detroit, Los Angeles, and Charlotte, North Carolina, according to CNBC.
‘The loans are subject to rigorous underwriting and are based on credit guidelines including on-time bill payments including rent, utilities, phone and auto insurance payments. Eligibility is based on income and home location,’ CNBC explained.
Those looking to apply will have to complete a homebuyer certification course courtesy of housing counseling partners approved by Bank of America and the Department of Housing and Urban Development.
Homeownership strengthens our communities and can help individuals and families to build wealth over time.
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.
AJ Barkley, head of neighborhood and community lending at Bank of America
LendingTree recently published a report that asserts it is harder for black families to own a home, and that mortgage denial is double that of the overall population.
The problem does exist. We have data that backs that up.
But there are solutions, and Black homebuyers shouldn’t lose faith that they’ll never be able to become homeowners.
Jacob Channel, senior economist at LendingTree, told CNBC
Patricia McCoy, professor at Boston College Law School, and a formal federal regulator, says the biggest hurdle for low and moderate-income homebuyers is having sufficient funds to make down payments and closing costs.
This obstacle disproportionately adversely affects Black and Hispanic-American homebuyers.
McCoy told CNN
CNN Business added,
A year ago the Biden administration announced several recommendations to close the racial homeownership gap. Earlier this year, the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, unveiled a sweeping plan to address discrimination in access to homeownership.
Among the recommendations were down payment assistance, lower mortgage insurance premiums and a credit reporting system that factors in rent payment history. It also suggested increasing the use of special purpose credit programs, which is what the Bank of America loan is.
These credit programs enable lenders to offer loans with favorable terms to borrowers who have suffered economic damages or who share common characteristics like low income, race or location. Though the Equal Credit Opportunity Act prohibits discrimination in lending based on race, sex, age or other traits, it does allow for these credit programs.
As part its program, Bank of America said it will make a down payment on behalf of borrowers. Those grants of $10,000 to $15,000, depending on the city, will immediately give borrowers equity in the home.
This is the same Bank of America who openly stated in a corporate memorandum that read “we hope” Americans increasingly lose their footing and leverage in the labor market.
AUTHOR COMMENTARY
Wealth gotten by vanity shall be diminished: but he that gathereth by labour shall increase.
Proverbs 13:11
Putting aside the obvious media bias to cause division, and inadvertently help fuel a few extra votes for Democrats come this November; in case you may have forgotten, the 2008 Great Recession and housing collapse was primarily caused by banks doing this very same thing: making ridiculous loans like this to families, buyers, and lenders who could not afford to take on these junk loans.
I have already reported how the housing market is on very thin ice right now as is, far surpassing the size and scale of the bubble that was inflated in 2008. If a lot of people snap at these offers, the housing bubble will inflate even more, causing even greater damage when it does pop… Which, when it does, the bigs and the banks will get bailed out once again, and the American tax cattle will be forced to flip the bill.
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The United States Does Not Have An Economy
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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Pandering to the minorities while also leading them into the debtor trap.
GET OFF OF THIS PLATFORM YOU HAVE NO BUSINESS HERE, JULIA!!!
Jacob brother,
You’ve got company!
Right…and I wonder if the installation of ‘smart meters’ will be part of the ‘deal’?
This is nothing new. I guess it is just making rounds in the media to stir up racial divide.
Back in 2012, my family and I were trying to purchase a home in Central Florida. We learned, that at that time, no matter the bank you applied for a mortgage, it would actually be coming from Wells Fargo. They were the ones that divvied out all the mortgages. Because my husband only had his automotive business for just shy of 2 years, none of the banks would give us a loan.
My dad was on the board of directors for a local back before he passed in July of 2012, but I would not use that to try to get a loan with that particular bank. (I applied just like everyone else and we were rejected because my husband’s business wasn’t over 2 years old.) When my dad passed and both my sisters were in Florida for the funeral, my oldest called the president of the bank and told him my family was trying to get a loan for a house. I used to babysit his children when I was a teenager so he knew me well and told my sister he would absolutely look into trying to help us.
Long story short; because both our credit scores were in the 800’s and we had no debt, he said he would sign off on an “in-house loan.” This meant it wouldn’t be going to Wells Fargo. He said we would still have to fill out a new application though. I filled out the application again and, when the bank loan officer called me to see if I had any questions, I said, “Yes, actually I do. As I filled out these 2 applications, I noticed that question #6 asks me to check the box of our ethnicity. All are listed. Question #7 asks me if I am Hispanic or Latino. Now, there’s a box to check on question #6 that says “Hispanic or Latino.” Do people forget that they are Hispanic or Latino from question #6 to question #7? Why is this asked?” There was a pause and I could hear her exhale. She then quietly said, “The government requires us to give a certain percentage of loans to the number 7s.” I asked her if these were “free loans,” no money down. She verified that they were.
My husband was making less than $12,000/year at that time (NO gov’t assistance. NO car payments. NO debt. All to the glory of God!) However, we STILL had to pay over $5,000 at closing. Don’t get me wrong: I did not complain then and I am not complaining now, but merely pointing out that this trend has always been in the works – at least in Florida.
I can also report that the number 7s in Florida know how to work the system. They get those free loans (along with every subsidy known to man to pay for absolutely everything.) The bank then pays them to refinance (to keep that percentage the gov’t requires) and then they let the house go into foreclosure as they leave with pockets full of money: to either do it again with the wife’s name or leave the country, go back to Mexico and “live like kings,” as one couple put it. (Also, a few years ago, when Rick Scott was governor: there was a hurricane that supposedly desimated Puerto Rico. It did NOT. We had friends with the power company that were made to go there in 3 month shifts – mandatory. They all told us there was NO damage to the electrical grid. All the footage the media was showing was old from an abandoned hotel that was wasting away for years. Anyway, Rick Scott brought over 5,000 families into Florida and gave all of them free houses, which takes away houses from those that are citizens and are willing to pay for a mortgage. Now, I understand it’s the Pakistanis that are getting free homes from the gov’t in Florida.)
We just purchased a home in Alabama this past March. Pretty much the same loan application. I asked our loan officer about the “number 7’s.” She told me, “Yes, it is still the same.”