Bank of America on Tuesday announced a program to help first-time homebuyers in select communities across the country obtain affordable home loans by nixing closing costs and down payments.
The Community Affordable Loan Solution will be available for certain black and Hispanic neighborhoods in Charlotte, Dallas, Detroit, Los Angeles, and Miami, though a bank representative claimed applicants don’t necessarily have to be Hispanic or black to qualify.
A statement announcing the program specifically addresses the homeownership disparity between white and black Americans and hispanic and white Americans.
The program uses other guidelines when considering who qualifies for a loan.
The Community Affordable Loan Solution is a Special Purpose Credit Program which uses credit guidelines based on factors such as timely rent, utility bill, phone and auto insurance payments. It requires no mortgage insurance or minimum credit score. Individual eligibility is based on income and home location. Prospective buyers must complete a homebuyer certification course provided by select Bank of America and HUD-approved housing counseling partners prior to application. (BoA)
"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, and it is part of our broader commitment to the communities that we serve."
The program was blasted on social media. While many called the move discriminatory, others pointed out it sounds exactly like what led to the subprime loan crisis.
In California, this would seem to violate the Unruh Act. Also federal Title VIII … Bank of America announces zero down payment mortgages for Black and Latino homebuyers https://t.co/zzFDWhrmK5 via @nbcnews
— Harmeet K. Dhillon (@pnjaban) September 1, 2022
Hey Americans who happen to be white:
— Steve Cortes (@CortesSteve) September 1, 2022
You bailed out Bank of America when they (and every other big bank) nearly collapsed the economy.
Now…BofA pays you back with an explicitly race-based lending program that overtly discriminates against white people.
Had enough??? pic.twitter.com/0SJFRXebaW
2008 called. They want their cause for the Great Recession back. https://t.co/4si5VYGs7C
— Jason Buttrill (@JasonButtrill) September 1, 2022
So Bank of America is trying to repeat history by giving loans to people who can’t afford them, which like in 2008 will lead to a housing market crash. This is actual institutional racism because they are leading Black and Latino families into bankruptcy with high interest rates. https://t.co/3UCd9wkfaf
— Tyler McKeever (@tylermckeever11) September 1, 2022
People who were alive during the subprime mortgage crisis. https://t.co/xjePNUg3HD pic.twitter.com/rgxdubauc0
— Flappr (@flapprdotnet) September 1, 2022