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All-TigerNet [12249]
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Bank of America offering zero down mortgages to minorities
Sep 9, 2022, 4:12 AM
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https://www.msn.com/en-us/money/realestate/bank-of-america-offers-zero-down-mortgage-in-minority-communities/ar-AA11n5FY
What a deal - no credit score requirement/consideration, zero down, no closing costs, and no PMI. Wonder what the interest rates will be on these loans?? Wonder what BOA will do if some poor white person asks for one of these loans to buy a house in one of the designated "minority communities"?
Looks like BOA is jonesing for a return to the 2008 subprime lending practices - because that turned out so well the last time the banks went down this road...
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All-In [30836]
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Does that not violate
Sep 9, 2022, 5:09 AM
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The Fair Housing Act and the Equal Credit Opportunity Act?
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Hall of Famer [24808]
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That vehicle doesn't have a reverse....***
Sep 9, 2022, 5:15 AM
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Hall of Famer [24098]
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Re: Does that not violate
Sep 9, 2022, 11:32 AM
[ in reply to Does that not violate ] |
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It's based on location and not race. At least according to BAC. The locations are based on racial and ethnic makeup, which is racist but not illegal.
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Hall of Famer [20542]
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Re: Bank of America offering zero down mortgages to minorities
Sep 9, 2022, 5:25 AM
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Just saying, how is it even legal to offer one group of people a deal based on skin color but not another?
Isn't that inherent discrimination that could be easily challenged in court?
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Orange Blooded [4679]
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Re: Bank of America offering zero down mortgages to minorities
Sep 9, 2022, 5:32 AM
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Offer the same deal to whites only and I think we would quickly find out.
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Orange Blooded [4020]
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Re: Bank of America offering zero down mortgages to minorities
Sep 9, 2022, 5:55 AM
[ in reply to Re: Bank of America offering zero down mortgages to minorities ] |
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Editor's note: The initial version of this story wrongly stated that only Black and Hispanic borrowers are eligible for a mortgage under Bank of America's Community Affordable Loan Solution program. In fact, the program is eligible to all borrowers based on their income and home location.
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All-TigerNet [12592]
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Re: Bank of America offering zero down mortgages to minorities
Sep 9, 2022, 6:43 AM
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The road to hell is paved with good intentions. Paying off a mortgage is a lot different than paying utility and rent bills on time.
Having to pay off a zero down mortgage will actually mean those that sign up for this will pay far more for their home in the long run.
I doubt this ends well much like in 2008 when so many had previously bought homes they really couldn't afford.
For a person living paycheck to paycheck, renting might not be such a bad option over "owning" a home with no initial equity and a slow ramp up to paying off the principle. There's also this pesky thing of property taxes to contend with.
The Repo man cometh.
Message was edited by: rons1®
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Hall of Famer [24098]
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Re: Bank of America offering zero down mortgages to minorities
Sep 9, 2022, 11:41 AM
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Could be some good buys from the bank in a few years.
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All-In [46825]
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CU Medallion [64837]
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don't forget to put on your makeup first
Sep 9, 2022, 9:16 AM
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110%er [7144]
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Re: Bank of America offering zero down mortgages to minorities
Sep 9, 2022, 9:42 PM
[ in reply to Re: Bank of America offering zero down mortgages to minorities ] |
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"Our Community Affordable Loan Solution will help make the dream of sustained homeownership attainable for more Black and Hispanic families..." AJ Barkley, Bank of America's head of neighborhood and community lending, said
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110%er [5694]
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Re: Bank of America offering zero down mortgages to minorities
Sep 9, 2022, 8:47 AM
[ in reply to Re: Bank of America offering zero down mortgages to minorities ] |
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You seem surprised that a group of liberals doesn’t give a chit about the law? Of course it’s illegal, but someone has to pay to take it to court.
Just like it is blatantly illegal to only take applications for the supreme court from black women. it is a clear violation of the 1964 civil rights act.
Just like it is a clear violation of the same act for the Minneapolis teachers union to sign a contract that says if layoffs happen white people go first. It’s blatantly illegal, but somebody has to take it to court to get it over turned And that cost money.
These are small examples of the clear and present trend of lawlessness by the Democrats. I’ve said it time and time again. And the bad thing about these examples, is that ultimately this will backfire on the same people that may be benefiting from them in the short term.
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110%er [7144]
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Re: Bank of America offering 0 down: Deja Vu all over again
Sep 9, 2022, 9:49 PM
[ in reply to Re: Bank of America offering zero down mortgages to minorities ] |
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If the BOA loans are segregated according to selected specifically defined geographical boundaries, then maybe they can get away with this program without it being characterized as having an ethnicity bias.
Of course, BOA (nor other big banks) need worry about insolvency. The "Too Big To Fail" precedence has encouraged even more risky behavior by both lenders of money and borrowers of money.
With regard to a sequel of 2008, refer to one of Yogi Berra's famous line "It's Deja Vu all over again."
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Hall of Famer [24098]
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Re: Bank of America offering 0 down: Deja Vu all over again
Sep 10, 2022, 6:16 AM
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The big banks aren't allowed to take as much risk as they were prior to 2008. Volker Rule (through Dodd-Frank), raised reserve requirements, and stress testing have reduced solvency risk.
This is mostly a stunt by BAC. A poorly thought out stunt but a stunt. My bigger concern is, that through this ill-conceived idea, they are enticing people in poorer communities to make bad financial decisions.
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All-In [40936]
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That is a bad deal
Sep 9, 2022, 5:43 AM
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for those borrowing the money. Being set up for failure. A house with negative equity is easy to walk away from.
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Commissioner [941]
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Re: That is a bad deal
Sep 9, 2022, 7:03 AM
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Apparently, some learned nothing from 2008! Stupid, stupid people ... not to mention racist!
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Orange Blooded [4679]
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Re: That is a bad deal
Sep 9, 2022, 7:24 AM
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Seems like this country just can not learn from history.
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Oculus Spirit [97734]
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I think we tried this already.....
Sep 9, 2022, 7:53 AM
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It didn't end well the first time.
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All-TigerNet [13146]
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Re: Bank of America offering zero down mortgages to minorities
Sep 9, 2022, 8:56 AM
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BofA will just raise “fees” on everyone else to cover the foreclosures, it’s the progressive way.
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Legend [17294]
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A quick “Search” confirms no race restrictions…
Sep 9, 2022, 9:13 AM
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as stated at bottom of linked article. In addition, it seems to be a pilot program that at this point in time does not have sufficient scale that would jeopardize the mortgage financial system similar to 2007 - 2008z There will be an alternative qualification process. Some suggest that these individual mortgages will have higher risk of default. (That seems obvious to me.) I’m speculating that BOA has analyzed the limited program for risks and benefits.
A little more time reading and research helps put things in perspective.
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110%er [9667]
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Yeah - they couldn't do that - it is targeted at Blacks and
Sep 9, 2022, 11:29 AM
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Hispanics though, as this quote from the article said:
"Our Community Affordable Loan Solution will help make the dream of sustained homeownership attainable for more Black and Hispanic families..." AJ Barkley, Bank of America's head of neighborhood and community lending, said
I wonder what the designated communities are?
I'm sure the down payment is what prevents some good people from being able to get started in a home.
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Hall of Famer [24098]
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Orange Blooded [3615]
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Re: Bank of America offering zero down mortgages to minorities
Sep 9, 2022, 11:40 AM
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Cool
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Rock Defender [53]
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Re: Bank of America offering zero down mortgages to minorities
Sep 9, 2022, 11:59 AM
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Hall of Famer [24098]
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Re: Bank of America offering zero down mortgages to minorities
Sep 9, 2022, 12:11 PM
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Not only is it racist on BAC''s part, but it is encouraging people to make poor financial decisions. In about 5 - 10 years, when this backfires, they will be called racist and predatory by the public (and it will serve them right).
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Legend [16865]
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Pretty clever PR...
Sep 10, 2022, 6:42 AM
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The availability of a mortgage is separate from the availability of a home to purchase with said mortgage. Happy huntin', though.
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