Bank of America announces zero down payment mortgages for Black and Latino homebuyers

[Toddsterpatriot]

The money came from banks with a government guarantee of repayment so that if the student (borrower) defaulted,

Before 2010, I completely agree.
Since then, the money came directly from the federal government.

 

[The Duke]

Because nothing says welcome to the neighborhood more than a big dose of racism.

MSN

 

[GMCGeneral]

So, back to the same shit, we did in 2005 that caused the last great crash.

Great.

Why do you think the late great ElRushbo called it " Bank of Amigo"?

 

[TheParser]

I am not being sarcastic.

So much time and effort is spent on those two ethnicities that maybe instead of reparations, the government should simply give them houses free of charge.

Then maybe we can go on to discuss other important issues than constantly worrying about those ladies & gentlemen 24/7.

 

[The Duke]

I am not being sarcastic.

So much time and effort is spent on those two ethnicities that maybe instead of reparations, the government should simply give them houses free of charge.

Then maybe we can go on to discuss other important issues than constantly worrying about those ladies & gentlemen 24/7.

I think the government should get right the fuck out of peoples' housing.

Regulate the predatory banks, though. Instead, our government props them up. And they are turds! They fucked the people bad in 2007. Real bad.
Bush and Obama bailed out the big banks instead of the people. That should let everyone know where their loyalties lie.
Those banks should have been let to fail and the depositors paid off first and the people helped out, but that's not what happened. Instead, the predatory banks were strengthened and bailed out by taxpayer dollars; WTF?!

They increased their assets by 2/3 during that period and private homeowners lost just that much. This is Clown World.

 

[Toddsterpatriot]

I think the government should get right the fuck out of peoples' housing.

Regulate the predatory banks, though. Instead, our government props them up. And they are turds! They fucked the people bad in 2007. Real bad.
Bush and Obama bailed out the big banks instead of the people. That should let everyone know where their loyalties lie.
Those banks should have been let to fail and the depositors paid off first and the people helped out, but that's not what happened. Instead, the predatory banks were strengthened and bailed out by taxpayer dollars; WTF?!

They increased their assets by 2/3 during that period and private homeowners lost just that much. This is Clown World.

Regulate the predatory banks, though.

How were they predatory?

Those banks should have been let to fail and the depositors paid off

How many trillions were you willing to spend?

and the people helped out,

Which people? Helped how?

Instead, the predatory banks were strengthened and bailed out by taxpayer dollars;

The TARP loans were repaid. The US Treasury made tens of billions.

 

[AMart]

Blacks have lower credit scores, which accounts for more denials. In fact, whites with incomes below $25,000 have better credit scores than blacks earning more than $65,000!

Study: African-Americans More Likely to Have Bad Credit - BadCredit.org

A recent $1.3 million dollar study undertaken by Freddie Mac has revealed some surprising differences in credit scores between African-Americans and Caucasians.

www.badcredit.org

Weed, hennessy, tinted windows and custom rims are a priority.

 

[GHook20]

I work in bank regulatory compliance. The ECOA/Reg B specifically disallows discriminatory intent and impact. You barely see discriminatory intent nowadays and discriminatory impact is very uncommon also.

One of the big practice the regulators call out is redlining.

Yet a very advantageous loan program geared to blacks and Hispanics is being redlined to specific areas of the country. They tell banks they can never do this because it is discriminatory. Yet discrimination is AOK if it is against whites.

Guarantee Biden’s CFPB head is going to to give this a pass!

SMH if discrimination is bad (and it is bad), then it is not made OK because you are attacking evil whites (and Asians).

Bank of America offers 'zero down payment' mortgages specifically for borrowers in black and Latino communities

The Community Affordable Loan Solution mortgage is exclusive to black and Hispanic Americans and does not require a minimum credit score or mortgage insurance.

thepostmillennial.com

“Bank of America is under fire for a new mortgage lending program geared specifically to black and Hispanic homebuyers. The loans, to be made in select minority communities throughout the country, require no down payments and no closing costs. Although white homebuyers in those neighborhoods who meet certain criteria are eligible for the program, the North Carolina-based lender said it is designed explicitly for blacks and Hispanics (Daily Wire). Post Millennial: Last year, Christopher Rufo leaked documents that revealed Bank of America’s executives were implementing racial equity programs and distributed materials to employees explaining its goals. The documents explained that “reverse racism and discrimination are not possible” and that people of color “could not be racist.” Bank of America promoted the definition of racism that states it can only exist to “uphold white supremacy” (Post Millennial).”

 

[Baron Von Murderpaws]

This isn't a new thing.
Blacks in this country have always gotten "first choice" when it comes to pretty much everything. And yet, they have the unmittigated GALL and NERVE to whine and complain about it!!!

If you bribe the gov't with enough money, you can do anything you want.

 

[AMart]

I posted about this illegal behavior in the race subforum yesterday.

 

[Rogue AI]

So you automatically categorized the recipients of this program as "under-qualified" buyers because they're making this offer to Blacks and Latinos? Yeah, that ain't racist at all </sarc>

There are all types of government benefits for first time home buyers, which is one of the conditions of this program, and qualifying for a mortgage is the first step. And while what BOA is offering makes it easier to get into a home without a down payment, the homeowner will pay extra interests on the loan by either paying for a longer period or will have much larger monthly payments so it's not exactly a give away like you seem to believe.

The biggest deal that I can see is not requiring mortgage insurance for not putting at least 20% down on the purchase which can increase your monthly mortgage significantly (25 to 33%).

In my opinion, if the homeowner never defaults on their loan, they should get some if not most of that money back. I know that's not how insurance works, but in this case, it should.

If they were qualified, they wouldn't need special treatment.

 

[GHook20]

Isn't that sort of discrimination based on race outright illegal?

I do fair lending compliance of banks… the regulators say that if a program targets traditional marginalized groups for beneficial programs they will not be cited. It hasn’t been challenged yet.

But technically it should be ilegal under ECOA/Reg B. This is specifically egregious since BOA is utilizing a tactic called redlining, which is specifically called out in the CFPB comptroller handbook on fair lending.

 

[GHook20]

Rednecks need not apply.

Or other poor whites or Asians!

 

[Concerned American]

If they were qualified, they wouldn't need special treatment.

This isn't something new. No down payment loans have been a feature of VA, FHA and FarmHome loans for decades. It wasn't until the crash of 08 that anyone started paying attention. I do think that those loans should have mortgage insurance automatically added to ensure repayment though.

 

[Toddsterpatriot]

If they were qualified, they wouldn't need special treatment.

 

[Toddsterpatriot]

This isn't something new. No down payment loans have been a feature of VA, FHA and FarmHome loans for decades. It wasn't until the crash of 08 that anyone started paying attention. I do think that those loans should have mortgage insurance automatically added to ensure repayment though.

My first mortgage was FHA.
PMI was added.

 

[Concerned American]

My first mortgage was FHA.
PMI was added.

So your first mortgage came after 2008--that was the last mortgage I got and they required it then. I was not required to have PMI on any of the other three homes that I purchased, one VA (1979--no down), one FHA (1987--no down) and one conventional (1996--30% down) The last one, 2008, after the crash, I put 10% down and PMI was required.

 

[Toddsterpatriot]

So your first mortgage came after 2008--that was the last mortgage I got and they required it then. I was not required to have PMI on any of the other three homes that I purchased, one VA (1979--no down), one FHA (1987--no down) and one conventional (1996--30% down) The last one, 2008, after the crash, I put 10% down and PMI was required.

So your first mortgage came after 2008-

Early 90s.

 

[Concerned American]

So your first mortgage came after 2008-

Early 90s.

And they required PMI? I would have shopped the mortgage. It was not required at that time.

 

[Toddsterpatriot]

And they required PMI? I would have shopped the mortgage. It was not required at that time.

I put down 3%. Yes, it was required.