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

[Concerned American]

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

Where are you? I was in CA when I got a conventional loan in 1996 with 30% down and PMI was not required. I never saw a PMI REQUIREMENT until after the crash and that was if you had less than 35% down.

 

[Toddsterpatriot]

Where are you? I was in CA when I got a conventional loan in 1996 with 30% down and PMI was not required. I never saw a PMI REQUIREMENT until after the crash and that was if you had less than 35% down.

Chicago. 3% down, not 30%.

 

[Lisa558]

Where are you? I was in CA when I got a conventional loan in 1996 with 30% down and PMI was not required. I never saw a PMI REQUIREMENT until after the crash and that was if you had less than 35% down.

I had PMI on my first mortgage too, circa 1985, and I put down more than 10%.

 

[skye]

 

[Concerned American]

Chicago. 3% down, not 30%.

I saw your post, I put 30% down on my 1996 loan.

 

[Concerned American]

View attachment 690834

I don't know how the bank is going to control closing costs. Many of those are taxes and title company fees over which they have no control. They may not require loan origination fees but that is about all they control.

 

[Toddsterpatriot]

I saw your post, I put 30% down on my 1996 loan.

Yeah, less than 20% you need PMI.

 

[Concerned American]

I had PMI on my first mortgage too, circa 1985, and I put down more than 10%.

Wow, I never heard of PMI until 2008. Did you have a conventional loan? My first conventional loan was 1996 and I put 30% down. Prior to that, they were both VA or FHA and the last one was after the crash and I only put 10% down (I was required to purchase PMI on that one).

 

[Lisa558]

Wow, I never heard of PMI until 2008. Did you have a conventional loan? My first conventional loan was 1996 and I put 30% down. Prior to that, they were both VA or FHA and the last one was after the crash and I only put 10% down (I was required to purchase PMI on that one).

I can’t remember what type of loan it was.

 

[GHook20]

They won't become insolvent. They will just foreclose and sell the property again.

Spoken like someone who knows nothing about the process. RESPA/Reg X requires a LONG loss mitigation process and at least a few loan modification attempts. In the meantime if they have an escrow account the bank needs to pay the taxes and insurance. They need to hire lawyers and pay massive legal bills.

If a mortgagor is smart they can prolong the process for a few years!

Once they do get the people foreclosed and evicted, the home is usually in very bad condition and it goes on the market as a foreclosure. They have to sell it at pennies on the dollar and they always lose money and the new owner is free to finance with who they want.

Every house that is foreclosed on is a massive expense and loss to the bank.

So get a clue before you make ignorant comments!

 

[GHook20]

Only banks that invested heavily in sub prime mortgages collapsed. Insurance companies that insured these mortgages crumbled and went out of business. What hit the banking industry the hardest was government regulators. They targeted small, independent banks that refused to make bad loans and closed them forcing the assets into bigger banks.

You know nothing about this… you truly are ignorant. Subprime lenders got hit hard, but the prime market that pushed the stated loans is what drove the market to collapse. The bad mortgages were packaged as A paper in investments tools and sold across the globe. Nearly destroyed the Icelandic economy. The prime market was the culprit and that is why Appraisal independence, QM/ATR and eventually TRID were added to TILA/Reg Z and Loss Mitigation servicing steps were added to RESPA/Reg X.

If it was only subprime, then the mortgage market wouldn’t have collapsed.

Get a clue…

 

[Toddsterpatriot]

Every house that is foreclosed on is a massive expense and loss to the bank.

It's funny that people think banks make money on foreclosures.
That they all made money in 2008 off of people losing their houses.

 

[EvilCat Breath]

You know nothing about this… you truly are ignorant. Subprime lenders got hit hard, but the prime market that pushed the stated loans is what drove the market to collapse. The bad mortgages were packaged as A paper in investments tools and sold across the globe. Nearly destroyed the Icelandic economy. The prime market was the culprit and that is why Appraisal independence, QM/ATR and eventually TRID were added to TILA/Reg Z and Loss Mitigation servicing steps were added to RESPA/Reg X.

If it was only subprime, then the mortgage market wouldn’t have collapsed.

Get a clue…

The first to collapse were the mortgage insurers which is why AIG and Bear Sterns went out of business.

 

[Toddsterpatriot]

The first to collapse were the mortgage insurers which is why AIG and Bear Sterns went out of business.

Bear Stearns insured mortgages?

 

[EvilCat Breath]

Bear Stearns insured mortgages?

Bear Stearns: Its Collapse, Bailout, Winners & Losers

Bear Stearns was an investment bank that collapsed during the subprime mortgage crisis in 2008. Read what happened after the Bear Stearns bailout.

www.investopedia.com

 

[Burgermeister]

It worked last time.

They'll get a government bailout again. This will end up being taxpayer funded. They probably already got assurances.

 

[Mac-7]

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

Liberals make up their own rules as needed

 

[Burgermeister]

Liberals make up their own rules as needed

And definitions.

 

[Toddsterpatriot]

Bear Stearns: Its Collapse, Bailout, Winners & Losers

Bear Stearns was an investment bank that collapsed during the subprime mortgage crisis in 2008. Read what happened after the Bear Stearns bailout.

www.investopedia.com

They bought bad mortgages, they'd didn't insure mortgages.

Glad to help.

 

[DigitalDrifter]

ahhhh....are they being mean to you ??

Mean?
No, but it is pretty damn racist to give people based solely on their skin color a different interest rate than the white guy at the next loan officers desk.