An executive branch of the federal government is partnering with embattled Bank of America in a massive money giveaway scheme that claims to be ‘targeting people of color’ with the promise of free stuff.
This happens right before the 2022 historic midterms by using taxpayer monies to help certain people in targeted areas get some real estate for- what sounds like- free, free, free.
Bank of America said in a press release that it is now offering ‘first-time homebuyers in a select group of cities zero down payment, zero closing cost mortgages to help grow homeownership among Black and Hispanic/Latino communities, which may be Democrat Joe Biden’s attempt to win back his escaped voter base after recent reports show that Democrats have lost a good portion of those voters.
According to media reports, Biden’s base of minority voters, especially blacks, Hispanics and Asians, are abandoning him ahead of the November midterm elections, driven away by an unexpectedly weak economy and poor outlook.
In a series of new Zogby polls shared with Secrets on Wednesday, support from the trio of groups that make up the traditional Democratic base is far below what’s needed to win big in the fall elections or in 2024. In the case of blacks and Hispanics, Biden’s approval numbers are down double digits.
What’s more, pollster Jonathan Zogby said no more than 35% of each group would choose Biden in the 2024 Democratic primaries.
But that was before there was free stuff; consider this.
“Bank of America’s Community Affordable Loan Solution aims to make sustained homeownership attainable for more Black and Hispanic families, offering zero down payment, zero closing cost mortgages,” according to a state about the program.
Criticism of the program includes entrapping people into financial burdens with promises of free stuff- that doesn’t last very long.
The bill always comes due at some point, but for now, the program sounds very promising.
“The option will first become available in certain neighborhoods in Charlotte, Dallas, Detroit, Los Angeles and Miami. The new mortgage, called the Community Affordable Loan Solution, aims to help eligible individuals and families obtain an affordable loan to purchase a home, the bank said,” Rob Wile reported for CBS News.
“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 release. “Our Community Affordable Loan Solution will help make the dream of sustained homeownership attainable for more Black and Hispanic families, and it is part of our broader commitment to the communities that we serve.”
According to media reports, the loans require no mortgage insurance — the additional fee typically charged to buyers who put down less than 20% of the purchase price — and no minimum credit score.
Instead, eligibility will be based on factors like timely rent payments and, on-time utility bill, phone and auto insurance payments.
Prospective buyers must also complete a homebuyer certification course provided by Bank of America and federally approved housing counseling partners before they apply for the loan program, the bank said.
The racial gap in homeownership rates in the U.S. remained substantial in 2020, the most recent year for which National Association of Realtors data are available.
For white households, the homeownership rate was 72.1%. That compares with 51.1% for Hispanic households and 43.4% for Black households. The Black homeownership rate was lower in 2020 than it was in 2010, the NAR said.
“During the pandemic, rising home prices and low housing supply have disproportionally impacted Black households more than any other race/ethnic group,” the NAR said in a report. White households are now 40% more likely to be able to afford to buy a home compared with Black households, the association said.
Bank of America and other major financial institutions like Wells Fargo have checkered histories when it comes to mortgage lending to people of color and prospective buyers who have disabilities.
Bank of America’s Countrywide Financial, a subprime lender it purchased in 2008, was fined $335 million in 2011 over claims that it charged Black and Hispanic homebuyers higher interest rates than white applicants.
In 2012, Wells Fargo agreed to pay $175 million to settle claims that it targeted people of color with risky home loans that were more expensive. And the city of Miami sued JPMorgan Chase in 2014, accusing the bank of predatory lending in communities of color.
Some reviews of the CBS article were interesting, one person pointed out that the program was based on skin color:
I did. And to a greater degree than 2012, this program is *targeting people of color.*
"Our Community Affordable Loan Solution will help make the dream of sustained homeownership attainable for more Black and Hispanic families…"
Whatʼs a "*B*lack neighborhood?" Same problem. pic.twitter.com/kIUN8iLQC1
— Kmele 🖐 (@kmele) September 1, 2022
A poster knows as ‘victim of Bank of America’ wrote in response:
“To those who think Bank of America’s Community Affordable Loan Solution is helping people. It’s not and this is why THE HOUSE PRICES ARE TOO HIGH! You need PMI, HOME OWNERS INSURENCE and PROPERTY TAXES on top of your MONTHY MORTGAGE! Most people do not have the income for it!”
To those who think Bank of America's Community Affordable Loan Solution is helping people.
It's not and this is why👇
THE HOUSE PRICES ARE TOO HIGH!
You need PMI, HOME OWNERS INSURENCE and PROPERTY TAXES on top of your MONTHY MORTGAGE!
Most people do not have the income for it!
— Victim of Bank of America (@Victim_of_BofA) September 1, 2022
National Mortgage News reported about the program saying, “Two new Bank of America lending programs seek to promote homeownership among minority borrowers as well as incentivize economic development in disadvantaged communities.
One is a pilot program that would offer mortgages to Black and Hispanic Americans using rent, utility and auto-insurance payment histories instead of traditional credit scores, BofA said in a news release Tuesday. The other is a down-payment relief program for women- and minority-owned small businesses that buy commercial real estate in federal opportunity zones.”
Under the Community Affordable Loan Solution program, the structure of home loans for thin-file borrowers would be based on a home’s location and an applicant’s income. Potential homebuyers must complete U.S. Department of Housing and Urban Development certification and counseling to qualify but do not have to obtain mortgage insurance.
The US Department of Housing and Urban Development is one of the executive departments of the U.S. federal government. It administers federal housing and urban development laws.