I guess Bank of America is going to be begging for a taxpayer funded bailout after they give all these mortgages to people who can't afford to pay...

[Drop Dead Fred]

I guess Bank of America is going to be begging for a taxpayer funded bailout after they give all these mortgages to people who can't afford to pay them back.

This article from CNN says they will be giving mortgages with no down payment and no minimum credit score.

Bank of America to offer zero-down payment mortgages in certain Black and Hispanic communities

Bank of America to offer zero-down payment mortgages in certain Black and Hispanic communities​

September 1, 2022

Bank of America is offering zero down payment mortgages with no closing costs for first-time homebuyers in certain Black and Hispanic neighborhoods in a new program designed to chip away at inequality in the housing market.

The new loan, launched this week, requires no minimum credit score nor mortgage insurance, which lenders typically charge when borrowers put less than 20% down.

Instead of a traditional credit score, first-time homebuyers will be evaluated based on their history of making timely payments for rent, utilities, phone service and auto insurance.

Bank of America said the new mortgage, known as the Community Affordable Loan Solution, is available in certain census-designated markets including Black and Hispanic neighborhoods in Charlotte, Dallas, Detroit, Los Angeles and Miami.

The bank said borrowers do not need to be Black or Hispanic to qualify. Eligibility is based on borrower income and home location.

“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 statement. “Our Community Affordable Loan Solution will help make the dream of sustained homeownership attainable for more Black and Hispanic families.”

 

[ColonelAngus]

I see no downside.

Loan people ALOT of money who cannot afford to save enough for a down payment.

Of course they can afford to maintain the home and all the payments.

 

[Harpy Eagle]

Instead of a traditional credit score, first-time homebuyers will be evaluated based on their history of making timely payments for rent, utilities, phone service and auto insurance.

This is actually a damn good way to look at things. Someone that has paid a rent that is $500 more than the mortgage/taxes will be for the past 5 years but that is never taken into account on a credit report.

 

[Concerned American]

Someone that has paid a rent that is $500 more than the mortgage/taxes will be for the past 5 years but that is never taken into account on a credit report.

Anyone who would pay $500 more than mortgage/taxes in rent isn't smart enough to take advantage of the program in the first place.

 

[Harpy Eagle]

Anyone who would pay $500 more than mortgage/taxes in rent isn't smart enough to take advantage of the program in the first place.

You make a lot of stupid assumptions, but at least you are good at it.

 

[1srelluc]

LOL.....They will just sell the properties to Blackrock.....Rentals will be very hot for some time to come.

From what I understand Blackrock has salted away 23 billion to take full advantage of the bubble bursting, not only just housing but also failing companies.

 

[Concerned American]

You make a lot of stupid assumptions, but at least you are good at it.

And I suppose you figure that someone who flushes $500 a month more than they could buy for is a genius, eh? Great, keep em coming. I would let someone else pay for my house as well. Now show everyone here how smart your assumptions are, Gigi.

 

[Indeependent]

I guess Bank of America is going to be begging for a taxpayer funded bailout after they give all these mortgages to people who can't afford to pay them back.

This article from CNN says they will be giving mortgages with no down payment and no minimum credit score.

Bank of America to offer zero-down payment mortgages in certain Black and Hispanic communities

Bank of America to offer zero-down payment mortgages in certain Black and Hispanic communities​

September 1, 2022

Bank of America is offering zero down payment mortgages with no closing costs for first-time homebuyers in certain Black and Hispanic neighborhoods in a new program designed to chip away at inequality in the housing market.

The new loan, launched this week, requires no minimum credit score nor mortgage insurance, which lenders typically charge when borrowers put less than 20% down.

Instead of a traditional credit score, first-time homebuyers will be evaluated based on their history of making timely payments for rent, utilities, phone service and auto insurance.

Bank of America said the new mortgage, known as the Community Affordable Loan Solution, is available in certain census-designated markets including Black and Hispanic neighborhoods in Charlotte, Dallas, Detroit, Los Angeles and Miami.

The bank said borrowers do not need to be Black or Hispanic to qualify. Eligibility is based on borrower income and home location.

“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 statement. “Our Community Affordable Loan Solution will help make the dream of sustained homeownership attainable for more Black and Hispanic families.”

I have been saying this for at least 2 years.

 

[1srelluc]

I have been saying this for at least 2 years.

BoA better fail with the dems still in charge.....The right hates BoA.

 

[Indeependent]

BoA better fail with the dems still in charge.....The right hates BoA.

Blackrock's plan is to repossess millions of homes.

 

[Harpy Eagle]

And I suppose you figure that someone who flushes $500 a month more than they could buy for is a genius, eh? Great, keep em coming. I would let someone else pay for my house as well. Now show everyone here how smart your assumptions are, Gigi.

Depends on their circumstance.

Maybe something on their credit report kept them from buying in the past so they were stuck renting.

Perhaps they choose to rent a lager house for 4 years while their child was in high school and now are ready to downsize so the house they are buying is smaller with a lower mortgage.

Perhaps they knew they were going to move in a set number of year (5 lets say) and did not want to risk buying and risking the market crashing so they rented till they moved.

Perhaps they were in the military and renting a house where they were stationed and are now ready to get out and buy a house.

The reasons are almost endless, but you keep on being you, a moron making moronic assumptions. You are so damn good at it

 

[Seymour Flops]

I guess Bank of America is going to be begging for a taxpayer funded bailout after they give all these mortgages to people who can't afford to pay them back.

This article from CNN says they will be giving mortgages with no down payment and no minimum credit score.

Bank of America to offer zero-down payment mortgages in certain Black and Hispanic communities

Bank of America to offer zero-down payment mortgages in certain Black and Hispanic communities​

September 1, 2022

Bank of America is offering zero down payment mortgages with no closing costs for first-time homebuyers in certain Black and Hispanic neighborhoods in a new program designed to chip away at inequality in the housing market.

The new loan, launched this week, requires no minimum credit score nor mortgage insurance, which lenders typically charge when borrowers put less than 20% down.

It's special treatment based on race. I wouldn't object at all, since it is B of A's money. Except that the OP is of course correct: the taxpayer will have to foot the bill when the people encouraged to borrow over their capacity to pay lose their homes.

Instead of a traditional credit score, first-time homebuyers will be evaluated based on their history of making timely payments for rent, utilities, phone service and auto insurance.

I'm not too upset about about that. Dave Ramsey had a term for it, which I can't remember right now. It's where people who don't have much of a credit score because they have taken his advice and not created a lot of debt ask the lender to go over the person's financial records instead relying on one data point.

Bank of America said the new mortgage, known as the Community Affordable Loan Solution, is available in certain census-designated markets including Black and Hispanic neighborhoods in Charlotte, Dallas, Detroit, Los Angeles and Miami.

The bank said borrowers do not need to be Black or Hispanic to qualify. Eligibility is based on borrower income and home location.

Oh.

That just means that developers will encourage a lot of white people to buy up enough homes in brown neighborhoods that the developers can buy the rest and gentrify them.

“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 statement. “Our Community Affordable Loan Solution will help make the dream of sustained homeownership attainable for more Black and Hispanic families.”

Homeownership, yes. Sustained? Why do they think that will happen?

 

[Concerned American]

Perhaps they knew they were going to move in a set number of year (5 lets say) and did not want to risk buying and risking the market crashing so they rented till they moved.

It is sooooo much smarter to flush another $30K down your toilet to pay for someone else's house than to buy one of your own, that in all liklihood will gain at least $30K in equity in that same five years. SMFH.

Perhaps they were in the military and renting a house where they were stationed and are now ready to get out and buy a house.

Again, it is soooo much smarter to flush a military housing allowance down the toilet to pay for a locals house instead of putting that money in your own pocket. Try again, moron. Many people make livings doing nothing because of morons such as you who like to give your money away.

 

[Moonglow]

It's their money they can do as they damn well please whether you like it or not.

 

[Leo123]

So, apparently government census is how B of A will pick and choose who gets the 'Community Affordable Loan Solution' perk. They say it's not race based however the whole article is full of statements how black and hispanics home ownership is below white home ownership. They talk about 'racial divide' etc. Biden and the Feds are behind this using the Federal Housing Finance Agency which regulates Fannie Mae and Freddie Mac with a 'sweeping plan' to 'address discrimination.' Discrimination my ass...The housing industry is literally riddled with 'Fair Housing' rules and laws.

This is NOT B of A doing this out of altruism, it's the Federal Government undermining the mortgage market for political gain. We've seen this before with the 2008 housing crash. Democrats just can't keep their hands out of our free markets and they always create a huge clusterfuck problem.

 

[Harpy Eagle]

Again, it is soooo much smarter to flush a military housing allowance down the toilet to pay for a locals house instead of putting that money in your own pocket. Try again, moron. Many people make livings doing nothing because of morons such as you who like to give your money away.

Most military people do not buy, you would know this if you ever bothered to serve. But I am sure to you anyone that puts on the uniform is a fucking moron.

When you are moving every 3 to 5 years there is too much uncertainty for buying. A lot of people found this out the hard way in the 2008 recession when they had their houses repossessed after moving duty stations and lost their clearances.

 

[Admiral Rockwell Tory]

I see no downside.

Loan people ALOT of money who cannot afford to save enough for a down payment.

Of course they can afford to maintain the home and all the payments.

ALOT is not a word, dumbass!

 

[Admiral Rockwell Tory]

Anyone who would pay $500 more than mortgage/taxes in rent isn't smart enough to take advantage of the program in the first place.

Oh, really? My daughter's rent for her two-bedroom apartment in Virginia was $1450 a month in an average complex. The mortgage on her home in Tennessee is less than $1000 a month.

 

[Admiral Rockwell Tory]

I have been saying this for at least 2 years.

You have been saying what? That post is as clear as mud!

 

[Admiral Rockwell Tory]

Most military people do not buy, you would know this if you ever bothered to serve. But I am sure to you anyone that puts on the uniform is a fucking moron.

When you are moving every 3 to 5 years there is too much uncertainty for buying. A lot of people found this out the hard way in the 2008 recession when they had their houses repossessed after moving duty stations and lost their clearances.

Idiot! I bought houses in South Carolina and Virginia in my last 10 years of active duty. I guess you never heard of the GI Bill home loans.

Every other married officer and senior enlisted person I knew bought their houses. I can't help the fact that you were a peon jarhead!