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...

[Indeependent]

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

I have seen mansions being built in poor areas where I knew the owners could not pay the mortgage.

 

[Admiral Rockwell Tory]

I have seen mansions being built in poor areas where I knew the owners could not pay the mortgage.

I'm sorry, but that's bullshit!

 

[MarathonMike]

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.”

This is ONE of the high risks associated with this program. From the article:

If home prices plunge, borrowers could end up “underwater” on their mortgage – where they owe more than the home is worth.
“The problem of underwater mortgages occurred in the wake of the 2008 financial crisis,” McCoy said, “and it spawned millions of foreclosures, with an especially devastating impact on Black and Hispanic-American homeowners.”

 

[Indeependent]

I'm sorry, but that's bullshit!

No it's not.
You think Banks are honest; they weren't honest from 2004 to 2008 and they're not honest now.

 

[Concerned American]

Most military people do not buy, you would know this if you ever bothered to serve.

Fuck off you stolen valor fuck. Between Myself (Vietnam), my Grandfather (WWI & WWII) Two uncles (WWII), My father (WWII, Korea, Vietnam), my sister (Navy nurse) and two brothers, who served twenty year careers. In my immediate family we have over 80 years service, counting grandparents and uncles, add another 28. Five of the eight of us served in war zones. Run along puke. BTW, we always bought homes.

 

[Admiral Rockwell Tory]

No it's not.
You think Banks are honest; they weren't honest from 2004 to 2008 and they're not honest now.

I'm sorry, but you talk like a liberals, making unfounded claims.

 

[Indeependent]

I'm sorry, but you talk like a liberals, making unfounded claims.

Tell that to all the banks that did it already.

 

[Concerned American]

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.

Do you have a point or do you just like to type. WTF does that have to do with someone choosing to rent someone else's property for $500 more/month than they could buy a property for themselves? If nothing else your analogy makes my point.

 

[Concerned American]

ALOT is not a word, dumbass!

Neither is dumbass, dumb ass

 

[Admiral Rockwell Tory]

Tell that to all the banks that did it already.

Why would a bank knowingly make a loan on a house knowing the homeowner would default? They would lose money, possible thousands upon thousands of dollars! That makes no sense. I guess you stopped to think and never restarted.

 

[Indeependent]

Why would a bank knowingly make a loan on a house knowing the homeowner would default? They would lose money, possible thousands upon thousands of dollars! That makes no sense. I guess you stopped to think and never restarted.

I don't know where you were when the housing bubble burst based on millions of bad loans and the banks were bailed out.
The bank and the investors repossess the home.
The closing costs alone make a nice bundle.
I presume you know that financial firms can manipulate stock values based on unrealized gain.

It's a game that the mortgagee loses when the market tanks.

 

[Admiral Rockwell Tory]

I don't know where you were when the housing bubble burst based on millions of bad loans and the banks were bailed out.
The bank and the investors repossess the home.
The closing costs alone make a nice bundle.
I presume you know that financial firms can manipulate stock values based on unrealized gain.

It's a game that the mortgagee loses when the market tanks.

I am sorry that you believe the bullshit you keep posting. Your understanding of closing costs is incorrect in so many ways. The mortgage lender gets very little of those fees.

 

[Ray From Cleveland]

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

The new trend is renting because younger people today don't want to do the repair and maintenance of a home. If they have a problem, they only want to call one number, and that's the landlord.

Several years ago I read an article that claimed millennials rent everything. They rent their apartment, their furniture, their appliances, and many lease their cars. They don't want to own much of anything.

 

[Indeependent]

I am sorry that you believe the bullshit you keep posting. Your understanding of closing costs is incorrect in so many ways. The mortgage lender gets very little of those fees.

I'm sorry that you are naive enough to believe banks and other Lenders don't do this.
The fact that you can deny what happened in 2008 makes me wonder about you.

 

[Indeependent]

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.

WTF are you babbling about?
There are many thousands of ex-military who own homes in Nassau County alone.

 

[Toddsterpatriot]

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.”

Just what Black and Hispanic neighborhoods need, more people with no equity.

 

[Toddsterpatriot]

Blackrock's plan is to repossess millions of homes.

Is Blackrock a big mortgage lender?

 

[Indeependent]

Is Blackrock a big mortgage lender?

No; they invest in Lenders.
Either that or all those people on YouTube are lying.

 

[Toddsterpatriot]

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.

Unless the government is guaranteeing the mortgage, how is the taxpayer on the hook?

 

[Ray From Cleveland]

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.”

Sounds to me like another bubble and bust coming along. This is similar to what Clinton did back in the 90s that ultimately led to the bubble and bust in the early 2000s.

Landlords are under no obligation to tell the truth. Some landlords will give any tenant a good reference to avoid any potential laws they may be breaking by being totally honest about a tenant. If they give a bad reference it could spell trouble for them. If they give a bad tenant a good reference, they'll never hear about it again.