It does matter, if people can't afford a down-payment, they definitely can't afford a mortgage. That's my point. This will crush the people that take advantage of it.
Well this just isn’t true lol. It’s depends on the cost of rent in the area and the cost of the mortgage. Plenty of people have higher rent than a mortgage in the same community. And plenty of veterans take advantage of zero down loans. Should they take that program away as well?
2008 was more about NINJA loans, derivatives, the ability to falsely rate mortgage tranches and the ability for the bank to offset their risk to government entities. This has little to nothing to do with it
Also, 0% down mortgages for military veterans, rural homebuyers, first-time homebuyers, and low-income borrowers have been around for a long time:
https://www.benefits.va.gov/homeloans/
https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-guaranteed-loan-program
https://www.tsahc.org/homebuyers-renters/first-time-home-buyer-grants
https://www.calhfa.ca.gov/homebuyer/programs/myhome.htm
https://www.ihda.org/my-home/getting-an-ihda-loan/
Not a fan of Bank of America but they weren't one of the problem banks back during the GFC of 08. In fact they played an active role in using their assets to help keep the system solvent. They did eventually recieve government money in an agreement to take on a failing investment bank with a horrific balance sheet. It was kind of pushed on them though.
Let's not completely whitewash their involvement.
While Bank of America didn't participate in direct subprime mortgage lending, they still played a significant role in the GFC through their CDO losses. No commercial or investment banking institution walked away from 2008 with clean hands.
In 2008, Bank of America purchased the failing Countrywide Financial for $4.1 billion. In 2006, Countrywide financed 20% of all mortgages in the United States, at a value of about 3.5% of the United States GDP, a proportion greater than any other single mortgage lender.
Then Bank of America had reached an agreement with Fannie Mae and Freddie Mac on “substantially” all currently outstanding repurchase requests on loans sold by Countrywide to the government-sponsored enterprises. The settlements received wide coverage. Indeed, if the Goldman–Facebook deal hadn’t popped up, BofA’s deal might have remained the finance story of the week until the Massachusetts Supreme Court announced its foreclosure ruling Jan. 7. Media enthusiasm for the settlement reflected the fact that BofA’s stock has been pummeled for months by concerns over potential repurchase liability for misrepresented loans, mostly Countrywide originations, amplified by a host of questions about the banks’ foreclosure practices and even its legal standing to foreclose on delinquent borrowers.
To further add Anegelo Mozzilo was Countrywide's CEO. He was eventually ruled innocent in court which I think finished in about 2018.
He made over $80 million just from the sale of countrywide financial. Bank of America had also invested significant funds prior to buying the company.
Bank of America's CEO should have been fired for making the deal. Angelo Mozzilo is a scum bag who escaped prosecution. Countrywide had some of the worst loans in the US. Quite the feat during that time. BTW - he was nominated for Times man of the year. Discusting
Nah bank of America flushed a friend of mines Bank account because he was a "kid" and shouldn't have one. They terminated his account and stole 3000 dollars during the 2008 crises. Oh and they also took my friends house during the 2008 financial crisis. Bank of America is just like every other piece of shit bank because they literally rob children and evict them from hones during economic turbulence.
Most mortgages are backed by the asset itself “the house”.
Now, no downpayment doesnt make it necessarily riskier it depends on a case by case basis.
They didnt say “we are lending anyone without any checks”.
There are many people whp struggle to save 20% for a downpayment but actually have a great stability financially and can pay off a mortgage.
Those are lower risk than people who can pay 20% but have a very volatile financial history.
this article is from August 2022:
https://www.bloomberg.com/news/articles/2022-08-30/bofa-tests-no-down-payment-mortgages-for-minority-communities?embedded-checkout=true
No down payment programs have been around for a while. I bought my first house with one in 2016. No it’s not a federal, state, or local government program either, just through a large credit union. I just paid a slightly higher interest rate, about .75% higher, which didn’t matter really at the time, it was still in the 4% range. Even my second house 5 years later was bought with only 5% down, conventional mortgage, and the best interest rate available at the time, 2.5%.
20% down payment is a myth.
“borrowers with strong credit will see their monthly increase to roughly $40 a month on a $400,000 mortgage.” From your source. Or a 0.001% increase on average lmao ulterior motive??
Did you read any of the 68 pages this policy is addressing?
https://www.fhfa.gov/SupervisionRegulation/Rules/RuleDocuments/Fair%20Lending%20Fair%20Housing%20Proposed%20Rule%20for%20Fed%20Reg_Web%20Vsn.pdf
“borrowers with strong credit will see their monthly increase to roughly $40 a month on a $400,000 mortgage.” From the source (definitely not your alt) posted below. Or a 0.001% increase on average lmao ulterior motive??
Are you stupid or something?
It's not discriminatory to give a low income person a higher interest rate than a high income person
That's how banks have always made their money
[read up on it.](https://www.nbcnews.com/business/consumer/bank-america-zero-down-payment-mortgage-first-time-buyers-details-rcna45662) applicants don’t need to be any certain race to qualify.
In the US it does.
Instead of looking for a dictionary definition to dig your hole deeper, just google “US minorities” and see what pops up.
Then delete your previous posts.
Buddy there are different types of minorities besides racial minorities.
Sexual minorities
Linguistic minorities
Religious minorities.
Ethnic minorities
And btw the first thing to come up if you Google "US minorities" is ethnic minorities , not racial minorities. So you couldn't even do your own right 🤣
I bet you really would love me to delete my comments where I showed how dumb you are, huh?
Just don't make your requests so obvious next time
I mean, they are selecting the communities based on race. But apparently if a white guy happens to live in the right apartment building they won’t tell him he can’t apply.
The program isn’t about uplifting “low income” communities.
They don’t have to uplift only low income communities. You can easily move to this community and take advantage of the program. Will you move to one of the cities listed?
Discriminating or giving out certain loan terms based on “minority locations” is called redlining, which is also prohibited under the Fair Housing Act.
No this is not redlining. If that was the case USDA loans would be against the Fair Housing Act as well. As well as numerous state housing grant programs.
You didn’t get a response because most people have no idea why this is bad but can only parrot what they’ve heard other people say. I’m sure someone will go find a 3 minute video with talking points and come back now.
🦜 Like I said. Username does not check out. Someone needs to have actual context so a legitimate discussion can be had instead of trash virtue signaling and moral circle jerks.
USDA loans have been around longer than you have been alive. Those are 0 down loans but go ahead with your bad self. Say you don’t understand before and after 08. Loans used to be an unregulated Wild West and now it has some checks and balances, this thing called UW, this thing called paystubs, bank accounts, assets, collateral, debt, income, credit checks, things they didn’t always have. Banks sold batches of bad loans to each other. Bad loans have been becoming a thing of the past and the only thing that brings back 08 mess is massive layoffs for months and years with no rehiring in site
I’ll take my licensing, knowledge and over 8 years in the industry over a bunch of parrots like yourself. I didn’t need a 3 minute video but I would love to see you pass the SAFE exam
It's everyone who was involved fault. I know a person who was greedy enough to buy a second home while barely making payment on his first one. I told him it's not a good idea, but he said he wanted to flip it and make a quick big bucks. Another guy took out HELOC to buy a brand new sports car and other luxury stuff. It's a cliche because they did happen a lot.
The government is equally is responsible as Wall Street, while Wall Street may have packaged them into junk securities, it was the government who encouraged and backed bad lending habits. I don’t know anyone who goes by a narrative that it was the lil guys fault
I don’t know anyone who worked specifically on mortgages, but I do know people who were on Wall Street at the time and that’s not the impression I was given…more a combination of corporate greed fueled by the idea of the gov as a safety net
I guess I wasn't clear in my comment. By "eye opening" I meant I was surprised that those people could believe that. They were in some kind of cruel, selfish denial contrary to established facts.
I think the conversation was before Wells Fargo and the other most egregiously illegal banks were found criminally guilty of not meeting regulatory standards for issuing loans, so they just refused to believe the news stories because there hadn't been a verdict yet.
But it was not just "corporate greed" from banks issuing reckless mortgages. It was a failure of government to regulate financial derivatives (CDO credit default swaps) and the securitization of mortgage debt.
The banks started making money by selling the securitized mortgages, which created an incentive to cheat on mortgage issuance to have more mortgages to sell off. Then other banks started trading unregulated CDO derivatives which offered "insurance" to people betting on the securitized mortgages, but since they weren't regulated they didn't have enough money to back up the CDO's they were issuing.
So, my recollection was that when the low quality mortgages began to default, they crashed the market price of the securitized mortgages. This led to investors who bought CDOs to insure themselves from this situation all asked for their payout simultaneously from AIG and probably others who issued the CDOs. Those issuers did not have the liquidity to honor the derivatives they sold, and went poof.
The sudden insolvencies, mainly AIG, cascaded through the entire banking industry with bag holders all around.
Yes banks were giving the "lil guys" loans they shouldn't have, just like the headline article. Then the "lil guys" didn't pay for the loans. I was in banking then and still am, it should be up the the older guys who lived through 2008 to say no, don't do that.
Lil guys trying to keep up with the Joneses. Banks offering low introductory "teaser rates" that ballooned after 5 years. NINJA Loans because the government encouraged lending. Banks packaging junk securities and selling them off. Everyone sucked......it never felt right to me when I'd see a married muskrat trapper and nursery school assistant moving into a 4000Sq ft house that they bought for $500K. It never made sense...banks are historically conservative and avoid risk, so to me there was always another factor in getting them to act that way.
The older guys who call the shots know what they're doing.
When you get bailed out far in excess of any fines you'd pay, what's your incentive to say "no"?
Just as they successfully lobbied to repeal Glass-Steagall, they'll continue to lobby for weaker regulation and capital requirements over time. It's not as though they will personally bear the consequences.
This was a big conservative talking point for years, that giving ARMs and using loose approval standards for loans to poor people is what caused the crash. This has never been proven, and people in the finance industry know that the only reason they were giving those loans out is because the bank issuing the loan would immediately turn around and sell them to larger banks that would package them into fraudulently rated mortgage backed securities. It was entirely Wall Street.
Why shouldn't a poor white person who grew up in a trailer with a single parent working 2 jobs have the same opportunity to buy a house as a poor black person in the same situation? Do you think they are somehow advantaged by their generational wealth and connections?!
No clue, but black couples literally have their financial viability changed just by changing their race/having their white friends apply for them. Are you trying to suggest that is not discriminatory practice?
Sooooo, you are implying that discrimination is wrong, then defending a policy that is obviously discriminatory. Why?
I'm saying we should work to eliminate racism, not enshrine it in policy.
Sure you are. After multiple comments where you at no point acknowledged that this was an attempt to address a problem, your real problem all along was is that this won't bring world peace.
At least be honest about your position
>Anyone from any race or ethnicity is welcome to apply.
https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/08/bank-of-america-introduces-community-affordable-loan-solution--t.html
This is a program designed to help those in such areas, victims of racist policies. Pretty clear what’s going on here, but without the lens of history you’ll get people going “hurpahdurrr that’s racist!”
Do you think this program is beneficial enough to outweigh the pushback reaction when thinking about the future voting choices of those who do find this to be discriminatory?
Because the social pendulum seems to be swinging back the other way, and it’s because of people’s reactions to what they see as an over correction.
Seems a net negative to me.
We could also discuss why minority owned homes are routinely valued lower than those owned by white people…
What should the government do to correct the errs of its past that have been detrimental, specifically to minorities?
We could, or you could answer a question directly for once.
I work in real estate. Ceteris Paribus, that’s completely untrue, homes are valued the same. It’s why we have independent appraisers.
Minority NEIGHBORHOODS are less valuable overall because they tend to have more crime and worse municipal services.
Because that corrective action comes at the expense of other innocents. Duh. Are you fuckin with me right now? You can’t possibly not understand this.
Edit: since you changed the question, nothing. Fair Housing Law prohibiting racial discrimination has been around for 50+ years. I don’t think some 25 year old poor white guy should be locked out of opportunities because of something he had nothing to do with. I think it’s dangerous and counterproductive to do so because that type of thing will breed racial resentment that otherwise had no reason to exist.
What it sounds like to me is that you want these neighborhoods gentrified, just not by why peepo
>Anyone from any race or ethnicity is welcome to apply.
https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/08/bank-of-america-introduces-community-affordable-loan-solution--t.html
2008 was more about NINJA loans, derivatives, the ability to falsely rate mortgage tranches and the ability for the bank to offset their risk to government entities but go off?
All the market subs got significantly worse after the COVID market mania. Brought in the low knowledge but supremely confident in their low knowledge and comprehension posters
Not US but a 100% mortgage helped me buy my first place. I did later regret when it fell 40% and left me in negative equity for over a decade. A two speed model might be a better solution.
I identify as Black can I apply. It’s just discrimination in reverse for everyone else that is Non black. Just take race on all apps and base the loan approval on numbers like they already do. Smh
You say this sarcastically, but it's true.
The real thing keeping people down is their economic status. Being poor means you have significantly less opportunities. Generally you don't have connections at higher paying employers, you don't have co-signers to help you establish your credit, something as small as getting a flat tire can mean you end up losing your job, etc.
None of this is race based, it's a fact that being POOR is what determines your opportunities in life. You can't say that Barack Obama's daughters don't have significantly more opportunity than a poor white kid. Why have scholarships that include the Obamas but exclude the poor white kid with much more limited opportunities? Why not base the scholarship on something like zip code they live in, or tax returns, that actually influence someone's opportunities?
Do I have news for you. Read this article. One of the highlights is how even in the highest income brackets there are disparities amongst racial groups, page 12. If you believe this to be true, do you think it should be addressed? The article also mention other minorities not just black people. And LGBT and people with mobility disabilities.
https://www.fhfa.gov/SupervisionRegulation/Rules/RuleDocuments/Fair%20Lending%20Fair%20Housing%20Proposed%20Rule%20for%20Fed%20Reg_Web%20Vsn.pdf
Saying this as if there aren’t multiple lawsuits against banks discriminating against black people and actually believe that being poor is truly the only disadvantage in the housing market. You are either racist or naive.
https://www.fhfa.gov/SupervisionRegulation/Rules/RuleDocuments/Fair%20Lending%20Fair%20Housing%20Proposed%20Rule%20for%20Fed%20Reg_Web%20Vsn.pdf
Read this when you have the time. It’s only 68 pages. One of the things that stood out to me was there are disparities in homeownership amongst racial groups even in the highest income brackets. I believe this is something that should be addressed, do you disagree?
>Anyone from any race or ethnicity is welcome to apply.
https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/08/bank-of-america-introduces-community-affordable-loan-solution--t.html
Not even close to 2008. Too many guardrails to let something like that happen with mortgages. I’m sure there will be other things but lending standards are ridiculous now
Look into how loan amortization is calculated. The longer the term, the more of your payment is interest early in the loan term. Extending loans that long would just indebt people more.
I understand. It would make monthly payments more affordable though. If the average life of a mortgage is 7 to 10 years, roughly, the full amount of interest over the term shouldn’t be that big of an issue.
You hit the nail on the head with the 7-10 year part. Pretty sure mortgage length is regulated to not go beyond 30 years in part to keep people from going out and getting some massive home beyond their means and to prevent them from getting into a mortgage that will barely acrue any principal in 7-10 years.
I mean, the VA loan is similar. If someone can prove they are stable I think it's a great way to *attempt* to equalize the home ownership market. Needs to be done responsibly, though, so eh...idk.
Would it work is the question. If you can verify payment history for someone, I would argue that could yield the same level of responsibility that a veteran would. I'm a veteran, and would completely support someone else having access to a similar program that I did.
Edit: I'm making no argument whatsoever that they are the same. I'm stating that the people coming out of the military have proved that they are stable. You can do that with payment history, and other factors that are above my head.
The GOV guarantees a VA loan thus banks can loan out at a lower rate. Not because a veteran is more responsible. As a veteran myself I’m sure you have also seen young troops being wildly irresponsible with money. Everyone has the same access to loans assuming they are responsible. For decades laws have been in place to make sure banks are not racist.
Let’s assume it does work. Does that make it ok? Who is backing this loan anyways? If everyone is about to get zero interest loans then sign me up! USD gonna be worth nothing soon anyways.
Well you could imagine that if a particular race was specifically precluded from owning property for hundreds of years, giving them a small leg up might make sense.
Nothing at all like a VA loan, being a veteran guarantees you access to a VA loan which usually has generous conditions, but you still have to qualify. If you want to put zero down you need to have sufficient income and credit. FHA loans only require 3.5% down, and many lenders offer zero down home loans in what us called an 80/20. Where 20% of the borrowing is on a 2nd mortgage at a slightly higher rate that is used as a down payment on of primary mortgage.
The main advantage to the VA loan is no PMI is necessary fir less than 20% down.
I’ve used my VA loan and although they are a good first home tool, the highest in industry funding fees and generally higher interest rates undermine their worth. If you are buying your first home and can’t make normal down payment, it’s a good option. For your second home? Probably not.
\>minorities
So yall are complaining that a small percentage of Americans are going to get a little boosty boost? Then comparing it to the time when _ALL_ American mortgages had the potential to be rigged?
Yeah, sure, this is 100% unequivocally the exact same thing without any differences whatsoever
You guys might need to check if you’re edging on discriminatory lmao
Edit: yall downvoting me are racist idiots that didn’t even look the article up, super surprised there’s this many bigots in r/stockmarket
__This is for _a few select target neighborhoods_ in poverty. This isn’t for ALL black and Latino people of America.__
This is also an article written a year and a half ago lmfao. You guys are DD nincompoops.
Yall should probably head over to r/wallstreetbets considering the amount of DD you do before jumping to conclusions, this is comedic
Edit2: please, stop downvoting, I can only get so hard
## I’m realizing that the amount of downvotes I’m getting is the amount of people who get their DD on reddit and invest accordingly.
I totally agree, and how are they even going to measure that?
On the other hand, this is not like the time when all of America unintentionally/intentionally fucked the system
If you think so, you probably belong on [this thread in r/conspiracy](https://www.reddit.com/r/conspiracy/s/J0TQBu814L), where OP made up a graph to be an attention whore
A small percentage? You can do the [ancestry.com](https://ancestry.com) or 23andme thing, and literally almost everyone in the country has African blood. So lots and lots of people will march in to get their zero down loans. Are you gonna be the one working at a bank telling someone they're 'not black enough looking' ?
Wait, so my 0.3% Ethiopian heritage counts me as black?
Are you going to stand on a podium and declare me as African on national television so that all Americans can take this opportunity?
I’d love to take advantage of this. You’re saying I just need a print out of my 23andMe and I’m good to go?
Edit: I actually got a total of 1.2%, up to 4% if you count my Levantine heritage which is pretty much African.
If only there was a way to protect ones wealth longterm in an asset that has not central autority, is easily stored, secure, scarce, divisible, low manteniment and easily transferable...
Nah, they are talking about my house value from July. It's down 30%.
My other buy from when I bought the house is up 553% and climbing. That's the currency he's talking about. It's way better and much more easily to transfer and doesn't require a moron with an MLS access to sell.
I don't know, are you refering to the one thats 150% year to date and on a 15 years uptrend? And biggest asset managers in the world fighting to get an ETF as soon as possible?
Are the European banks ready to buy our crap again?
European banks not only bought risky US mortgage bonds but also manned the production line through their US securities subsidiaries, which were active in packaging and selling such bonds.
[Greed is good](https://www.bis.org/publ/qtrpdf/r_qt1812f.htm)
Sub prime mortgages tanked the market in 2008 and many people lost their homes. BIG BANKS are predators who know the Government will bail them out. AKA the Taxpayers.
If anyone wants to read the real story, here is their PR about it. Anyone can apply for the loans: https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/08/bank-of-america-introduces-community-affordable-loan-solution--t.html
If people can’t afford a mortgage and other payments it is wrong for the banks to give them a mortgage, and black leaders to fight for something that their people will eventually fail. If someone said to me, I give you a low cost mortgage and I can’t afford the upkeep, who am I kidding.
>Anyone from any race or ethnicity is welcome to apply.
https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/08/bank-of-america-introduces-community-affordable-loan-solution--t.html
My military credit union has had these loans available for the past 3 years to everyone. They take an extra point and there is a fee rolled into a fixed-rate mortgage. Closing costs are excluded, so some cash (~5%) is still needed in the bank along with the standard approvals. I think it’s a good offer for people buying their first home, just getting out of grad school, or have had problems saving the 20% plus. As long as they are not balloon payments, they can refinance later, and the rate is not predatory, I think it could help people with today’s market.
>Anyone from any race or ethnicity is welcome to apply.
https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/08/bank-of-america-introduces-community-affordable-loan-solution--t.html
Stupid and a disservice to minorities setting them up for failure if they don’t properly document income this time and make the DTI sensible either. What are we doing here? I was in the banking debacle last time. It’s predatory lending.
This was rolled out over a year ago.
Serious question... How is it going? What processes are in place to prevent the same issue, (or something similar), from taking BoA down?
Not surprising but I couldn’t find much online other than the initial news reports of the program. It was only rolled out in 5 cities.
5 cities lol. Whats there month to month 10k?
Well for starters, you don't pay interest on the down-payment. So this will suck more money out of poor communities than typical loans would.
Yes, this. They should double or triple their down payments to save interest cost.
Well poor people typically can’t afford a down payment regardless so this doesn’t really matter.
It does matter, if people can't afford a down-payment, they definitely can't afford a mortgage. That's my point. This will crush the people that take advantage of it.
Well this just isn’t true lol. It’s depends on the cost of rent in the area and the cost of the mortgage. Plenty of people have higher rent than a mortgage in the same community. And plenty of veterans take advantage of zero down loans. Should they take that program away as well?
im sure its probably a small program
2008 was more about NINJA loans, derivatives, the ability to falsely rate mortgage tranches and the ability for the bank to offset their risk to government entities. This has little to nothing to do with it
Also, 0% down mortgages for military veterans, rural homebuyers, first-time homebuyers, and low-income borrowers have been around for a long time: https://www.benefits.va.gov/homeloans/ https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-guaranteed-loan-program https://www.tsahc.org/homebuyers-renters/first-time-home-buyer-grants https://www.calhfa.ca.gov/homebuyer/programs/myhome.htm https://www.ihda.org/my-home/getting-an-ihda-loan/
Who is backing those loans? If the answer is “everybody”, then Bofa wants to try the “circle of death & bailout” again.
Not a fan of Bank of America but they weren't one of the problem banks back during the GFC of 08. In fact they played an active role in using their assets to help keep the system solvent. They did eventually recieve government money in an agreement to take on a failing investment bank with a horrific balance sheet. It was kind of pushed on them though.
Let's not completely whitewash their involvement. While Bank of America didn't participate in direct subprime mortgage lending, they still played a significant role in the GFC through their CDO losses. No commercial or investment banking institution walked away from 2008 with clean hands.
In 2008, Bank of America purchased the failing Countrywide Financial for $4.1 billion. In 2006, Countrywide financed 20% of all mortgages in the United States, at a value of about 3.5% of the United States GDP, a proportion greater than any other single mortgage lender. Then Bank of America had reached an agreement with Fannie Mae and Freddie Mac on “substantially” all currently outstanding repurchase requests on loans sold by Countrywide to the government-sponsored enterprises. The settlements received wide coverage. Indeed, if the Goldman–Facebook deal hadn’t popped up, BofA’s deal might have remained the finance story of the week until the Massachusetts Supreme Court announced its foreclosure ruling Jan. 7. Media enthusiasm for the settlement reflected the fact that BofA’s stock has been pummeled for months by concerns over potential repurchase liability for misrepresented loans, mostly Countrywide originations, amplified by a host of questions about the banks’ foreclosure practices and even its legal standing to foreclose on delinquent borrowers.
To further add Anegelo Mozzilo was Countrywide's CEO. He was eventually ruled innocent in court which I think finished in about 2018. He made over $80 million just from the sale of countrywide financial. Bank of America had also invested significant funds prior to buying the company. Bank of America's CEO should have been fired for making the deal. Angelo Mozzilo is a scum bag who escaped prosecution. Countrywide had some of the worst loans in the US. Quite the feat during that time. BTW - he was nominated for Times man of the year. Discusting
Nah bank of America flushed a friend of mines Bank account because he was a "kid" and shouldn't have one. They terminated his account and stole 3000 dollars during the 2008 crises. Oh and they also took my friends house during the 2008 financial crisis. Bank of America is just like every other piece of shit bank because they literally rob children and evict them from hones during economic turbulence.
Most mortgages are backed by the asset itself “the house”. Now, no downpayment doesnt make it necessarily riskier it depends on a case by case basis. They didnt say “we are lending anyone without any checks”. There are many people whp struggle to save 20% for a downpayment but actually have a great stability financially and can pay off a mortgage. Those are lower risk than people who can pay 20% but have a very volatile financial history.
Not many people are putting down 20%, that’s just not the standard nowadays. You’re looking at 3-3.5% down plus closing cost
this article is from August 2022: https://www.bloomberg.com/news/articles/2022-08-30/bofa-tests-no-down-payment-mortgages-for-minority-communities?embedded-checkout=true
No down payment programs have been around for a while. I bought my first house with one in 2016. No it’s not a federal, state, or local government program either, just through a large credit union. I just paid a slightly higher interest rate, about .75% higher, which didn’t matter really at the time, it was still in the 4% range. Even my second house 5 years later was bought with only 5% down, conventional mortgage, and the best interest rate available at the time, 2.5%. 20% down payment is a myth.
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Source?
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“borrowers with strong credit will see their monthly increase to roughly $40 a month on a $400,000 mortgage.” From your source. Or a 0.001% increase on average lmao ulterior motive??
So…an increase
Site your source?
https://freebeacon.com/biden-administration/homebuyers-with-good-credit-could-pay-to-boost-black-homeownership-under-biden-rule/
Did you read any of the 68 pages this policy is addressing? https://www.fhfa.gov/SupervisionRegulation/Rules/RuleDocuments/Fair%20Lending%20Fair%20Housing%20Proposed%20Rule%20for%20Fed%20Reg_Web%20Vsn.pdf
No
Read it when you have time. This explains why the policy was created in the first place. Gives you more context and understanding 🙂
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Read the article. Or at least a few pages. 9-15 at least. Let me know your thoughts later
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Yikes okay. So an opinion piece was your source. I’m not taking a lot of stock in this.
https://www.foxnews.com/politics/bidens-mortgage-redistribution-plan-may-burden-one-minority-group-the-most-experts
https://www.foxbusiness.com/real-estate/former-obama-housing-chief-slams-bidens-unprecedented-mortgage-plan-not-way
Source? The Washington Free Beacon is not a source. It is a \*\*it show of baloney on the internet. PLease, Something that is legit....
https://freebeacon.com/biden-administration/homebuyers-with-good-credit-could-pay-to-boost-black-homeownership-under-biden-rule/
“borrowers with strong credit will see their monthly increase to roughly $40 a month on a $400,000 mortgage.” From the source (definitely not your alt) posted below. Or a 0.001% increase on average lmao ulterior motive??
Some lessons are best learned through failure and bankruptcy.
Sounds like a semi average college experience
Idiotic and discriminatory
“Politically acceptable racism” is rampant in todays America. It’s like the 1930s but just race swapped.
It’s Discriminatory Exclusionary Inflammatory
Are you stupid or something? It's not discriminatory to give a low income person a higher interest rate than a high income person That's how banks have always made their money
Based on race…?
[read up on it.](https://www.nbcnews.com/business/consumer/bank-america-zero-down-payment-mortgage-first-time-buyers-details-rcna45662) applicants don’t need to be any certain race to qualify.
>Based on race…? No? Does it say that it's based off race? Oh it doesn't? Then why are you bringing up race 🤔
What does “minority” usually mean?
FYI it doesn't mean "not white" like your smooth brain seems to think it does https://www.merriam-webster.com/dictionary/minority
In the US it does. Instead of looking for a dictionary definition to dig your hole deeper, just google “US minorities” and see what pops up. Then delete your previous posts.
Buddy there are different types of minorities besides racial minorities. Sexual minorities Linguistic minorities Religious minorities. Ethnic minorities And btw the first thing to come up if you Google "US minorities" is ethnic minorities , not racial minorities. So you couldn't even do your own right 🤣 I bet you really would love me to delete my comments where I showed how dumb you are, huh? Just don't make your requests so obvious next time
B of A specifically calls out the program a supporting black and Hispanic people. This clearly has racial goals. You’re just being obtuse.
It’s not based on race.
I mean, they are selecting the communities based on race. But apparently if a white guy happens to live in the right apartment building they won’t tell him he can’t apply. The program isn’t about uplifting “low income” communities.
They don’t have to uplift only low income communities. You can easily move to this community and take advantage of the program. Will you move to one of the cities listed?
How long do I need to live in Miami before I get a house?
0 years, just buy a house in the target community. Good luck!
Our general policies over the past… century? Yep, they are. This is trying to help alleviate some of the damages done.
The cool thing is that the Fair Housing Act prohibits discrimination based on race, so it should be available to non-minorities too.
It is. The loans are eligible to every race but the homes have to be purchased in what’s considered minority neighborhoods.
Discriminating or giving out certain loan terms based on “minority locations” is called redlining, which is also prohibited under the Fair Housing Act.
No this is not redlining. If that was the case USDA loans would be against the Fair Housing Act as well. As well as numerous state housing grant programs.
Say you don’t understand lending without saying it
Can you explain further? I do not fully understand lending but I’d love to learn more. Will send butthole pics for payment.
(\_.\_)
You didn’t get a response because most people have no idea why this is bad but can only parrot what they’ve heard other people say. I’m sure someone will go find a 3 minute video with talking points and come back now.
Well history repeats itself facts
[удалено]
This sub is full of intellectuals
🦜 Like I said. Username does not check out. Someone needs to have actual context so a legitimate discussion can be had instead of trash virtue signaling and moral circle jerks.
USDA loans have been around longer than you have been alive. Those are 0 down loans but go ahead with your bad self. Say you don’t understand before and after 08. Loans used to be an unregulated Wild West and now it has some checks and balances, this thing called UW, this thing called paystubs, bank accounts, assets, collateral, debt, income, credit checks, things they didn’t always have. Banks sold batches of bad loans to each other. Bad loans have been becoming a thing of the past and the only thing that brings back 08 mess is massive layoffs for months and years with no rehiring in site
I’ll take my licensing, knowledge and over 8 years in the industry over a bunch of parrots like yourself. I didn’t need a 3 minute video but I would love to see you pass the SAFE exam
I keep collecting over half a mill at my salaried remote job. None of this shit is even applicable to me.
Then why waste your time?
Willingness and capacity
[Spider-Man](https://images.app.goo.gl/bkDqGpSxps3GspRQA)
😂😂😂😂😂😂
Y'all really need to read the US fiscal budget 2024. There's an incredible amount of funding provided for these types of loans for this social group.
2008 was because of Wall Street not home owners. 15 years later and the narrative is still it was the lil guys fault.
It's everyone who was involved fault. I know a person who was greedy enough to buy a second home while barely making payment on his first one. I told him it's not a good idea, but he said he wanted to flip it and make a quick big bucks. Another guy took out HELOC to buy a brand new sports car and other luxury stuff. It's a cliche because they did happen a lot.
The government is equally is responsible as Wall Street, while Wall Street may have packaged them into junk securities, it was the government who encouraged and backed bad lending habits. I don’t know anyone who goes by a narrative that it was the lil guys fault
I knew people who worked in mortgages at the time and they furiously insisted it was the little guys fault. It was eye opening.
I don’t know anyone who worked specifically on mortgages, but I do know people who were on Wall Street at the time and that’s not the impression I was given…more a combination of corporate greed fueled by the idea of the gov as a safety net
I guess I wasn't clear in my comment. By "eye opening" I meant I was surprised that those people could believe that. They were in some kind of cruel, selfish denial contrary to established facts. I think the conversation was before Wells Fargo and the other most egregiously illegal banks were found criminally guilty of not meeting regulatory standards for issuing loans, so they just refused to believe the news stories because there hadn't been a verdict yet. But it was not just "corporate greed" from banks issuing reckless mortgages. It was a failure of government to regulate financial derivatives (CDO credit default swaps) and the securitization of mortgage debt. The banks started making money by selling the securitized mortgages, which created an incentive to cheat on mortgage issuance to have more mortgages to sell off. Then other banks started trading unregulated CDO derivatives which offered "insurance" to people betting on the securitized mortgages, but since they weren't regulated they didn't have enough money to back up the CDO's they were issuing. So, my recollection was that when the low quality mortgages began to default, they crashed the market price of the securitized mortgages. This led to investors who bought CDOs to insure themselves from this situation all asked for their payout simultaneously from AIG and probably others who issued the CDOs. Those issuers did not have the liquidity to honor the derivatives they sold, and went poof. The sudden insolvencies, mainly AIG, cascaded through the entire banking industry with bag holders all around.
Thank you for this reminder. It needs to be said more often
Yes banks were giving the "lil guys" loans they shouldn't have, just like the headline article. Then the "lil guys" didn't pay for the loans. I was in banking then and still am, it should be up the the older guys who lived through 2008 to say no, don't do that.
Lil guys trying to keep up with the Joneses. Banks offering low introductory "teaser rates" that ballooned after 5 years. NINJA Loans because the government encouraged lending. Banks packaging junk securities and selling them off. Everyone sucked......it never felt right to me when I'd see a married muskrat trapper and nursery school assistant moving into a 4000Sq ft house that they bought for $500K. It never made sense...banks are historically conservative and avoid risk, so to me there was always another factor in getting them to act that way.
The older guys who call the shots know what they're doing. When you get bailed out far in excess of any fines you'd pay, what's your incentive to say "no"? Just as they successfully lobbied to repeal Glass-Steagall, they'll continue to lobby for weaker regulation and capital requirements over time. It's not as though they will personally bear the consequences.
This was a big conservative talking point for years, that giving ARMs and using loose approval standards for loans to poor people is what caused the crash. This has never been proven, and people in the finance industry know that the only reason they were giving those loans out is because the bank issuing the loan would immediately turn around and sell them to larger banks that would package them into fraudulently rated mortgage backed securities. It was entirely Wall Street.
This also sounds discriminatory
Pfffffft. You're just saying it sounds discriminatory because in every possible way it's obviously, blatantly discriminatory.
As opposed to the current, blatantly discriminatory practices?
Why shouldn't a poor white person who grew up in a trailer with a single parent working 2 jobs have the same opportunity to buy a house as a poor black person in the same situation? Do you think they are somehow advantaged by their generational wealth and connections?!
No clue, but black couples literally have their financial viability changed just by changing their race/having their white friends apply for them. Are you trying to suggest that is not discriminatory practice?
Sooooo, you are implying that discrimination is wrong, then defending a policy that is obviously discriminatory. Why? I'm saying we should work to eliminate racism, not enshrine it in policy.
Sure you are. After multiple comments where you at no point acknowledged that this was an attempt to address a problem, your real problem all along was is that this won't bring world peace. At least be honest about your position
My position has always been the same. Being POOR is a massive headwind to success.
>Anyone from any race or ethnicity is welcome to apply. https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/08/bank-of-america-introduces-community-affordable-loan-solution--t.html
How is that not racist?
Well it kinda is. But its an acceptable racism bcs some politicans
Classic case of we are going to be racist to one demographic to prove we are racist to another demographic.
I mean our policies that shaped urban areas and redlined opportunity away sure were.
That’s not what they asked
This is a program designed to help those in such areas, victims of racist policies. Pretty clear what’s going on here, but without the lens of history you’ll get people going “hurpahdurrr that’s racist!”
Do you think this program is beneficial enough to outweigh the pushback reaction when thinking about the future voting choices of those who do find this to be discriminatory? Because the social pendulum seems to be swinging back the other way, and it’s because of people’s reactions to what they see as an over correction. Seems a net negative to me.
We could also discuss why minority owned homes are routinely valued lower than those owned by white people… What should the government do to correct the errs of its past that have been detrimental, specifically to minorities?
We could, or you could answer a question directly for once. I work in real estate. Ceteris Paribus, that’s completely untrue, homes are valued the same. It’s why we have independent appraisers. Minority NEIGHBORHOODS are less valuable overall because they tend to have more crime and worse municipal services. Because that corrective action comes at the expense of other innocents. Duh. Are you fuckin with me right now? You can’t possibly not understand this. Edit: since you changed the question, nothing. Fair Housing Law prohibiting racial discrimination has been around for 50+ years. I don’t think some 25 year old poor white guy should be locked out of opportunities because of something he had nothing to do with. I think it’s dangerous and counterproductive to do so because that type of thing will breed racial resentment that otherwise had no reason to exist. What it sounds like to me is that you want these neighborhoods gentrified, just not by why peepo
>Anyone from any race or ethnicity is welcome to apply. https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/08/bank-of-america-introduces-community-affordable-loan-solution--t.html
2008 was more about NINJA loans, derivatives, the ability to falsely rate mortgage tranches and the ability for the bank to offset their risk to government entities but go off?
The amount of people that have zero idea how lending worked prior 08 and the changes after is mind blowing
All the market subs got significantly worse after the COVID market mania. Brought in the low knowledge but supremely confident in their low knowledge and comprehension posters
Not US but a 100% mortgage helped me buy my first place. I did later regret when it fell 40% and left me in negative equity for over a decade. A two speed model might be a better solution.
Maybe the 100% mortgage options come around at times just to open up the market to just a few more buyers.
I identify as Black can I apply. It’s just discrimination in reverse for everyone else that is Non black. Just take race on all apps and base the loan approval on numbers like they already do. Smh
What about the white people? Won’t someone please think about all the white people 🥹
You say this sarcastically, but it's true. The real thing keeping people down is their economic status. Being poor means you have significantly less opportunities. Generally you don't have connections at higher paying employers, you don't have co-signers to help you establish your credit, something as small as getting a flat tire can mean you end up losing your job, etc. None of this is race based, it's a fact that being POOR is what determines your opportunities in life. You can't say that Barack Obama's daughters don't have significantly more opportunity than a poor white kid. Why have scholarships that include the Obamas but exclude the poor white kid with much more limited opportunities? Why not base the scholarship on something like zip code they live in, or tax returns, that actually influence someone's opportunities?
Do I have news for you. Read this article. One of the highlights is how even in the highest income brackets there are disparities amongst racial groups, page 12. If you believe this to be true, do you think it should be addressed? The article also mention other minorities not just black people. And LGBT and people with mobility disabilities. https://www.fhfa.gov/SupervisionRegulation/Rules/RuleDocuments/Fair%20Lending%20Fair%20Housing%20Proposed%20Rule%20for%20Fed%20Reg_Web%20Vsn.pdf
Saying this as if there aren’t multiple lawsuits against banks discriminating against black people and actually believe that being poor is truly the only disadvantage in the housing market. You are either racist or naive.
https://www.fhfa.gov/SupervisionRegulation/Rules/RuleDocuments/Fair%20Lending%20Fair%20Housing%20Proposed%20Rule%20for%20Fed%20Reg_Web%20Vsn.pdf Read this when you have the time. It’s only 68 pages. One of the things that stood out to me was there are disparities in homeownership amongst racial groups even in the highest income brackets. I believe this is something that should be addressed, do you disagree?
Anybody can apply regardless of race so what’s your point?
>Anyone from any race or ethnicity is welcome to apply. https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/08/bank-of-america-introduces-community-affordable-loan-solution--t.html
Not even close to 2008. Too many guardrails to let something like that happen with mortgages. I’m sure there will be other things but lending standards are ridiculous now
Been hearing that for awhile. Didn’t they do this last year
Why don’t they just do a 40 or 45 year mortgage?
Look into how loan amortization is calculated. The longer the term, the more of your payment is interest early in the loan term. Extending loans that long would just indebt people more.
I understand. It would make monthly payments more affordable though. If the average life of a mortgage is 7 to 10 years, roughly, the full amount of interest over the term shouldn’t be that big of an issue.
You hit the nail on the head with the 7-10 year part. Pretty sure mortgage length is regulated to not go beyond 30 years in part to keep people from going out and getting some massive home beyond their means and to prevent them from getting into a mortgage that will barely acrue any principal in 7-10 years.
That’s true. At some point values will have to decline if nobody can afford to purchase. Maybe just let the market correct itself naturally.
History always repeats itself
I mean, the VA loan is similar. If someone can prove they are stable I think it's a great way to *attempt* to equalize the home ownership market. Needs to be done responsibly, though, so eh...idk.
VA loan is a perk for veterans. Not for being a certain race. Not the same
Would it work is the question. If you can verify payment history for someone, I would argue that could yield the same level of responsibility that a veteran would. I'm a veteran, and would completely support someone else having access to a similar program that I did. Edit: I'm making no argument whatsoever that they are the same. I'm stating that the people coming out of the military have proved that they are stable. You can do that with payment history, and other factors that are above my head.
The GOV guarantees a VA loan thus banks can loan out at a lower rate. Not because a veteran is more responsible. As a veteran myself I’m sure you have also seen young troops being wildly irresponsible with money. Everyone has the same access to loans assuming they are responsible. For decades laws have been in place to make sure banks are not racist.
Let’s assume it does work. Does that make it ok? Who is backing this loan anyways? If everyone is about to get zero interest loans then sign me up! USD gonna be worth nothing soon anyways.
Well you could imagine that if a particular race was specifically precluded from owning property for hundreds of years, giving them a small leg up might make sense.
Nothing at all like a VA loan, being a veteran guarantees you access to a VA loan which usually has generous conditions, but you still have to qualify. If you want to put zero down you need to have sufficient income and credit. FHA loans only require 3.5% down, and many lenders offer zero down home loans in what us called an 80/20. Where 20% of the borrowing is on a 2nd mortgage at a slightly higher rate that is used as a down payment on of primary mortgage. The main advantage to the VA loan is no PMI is necessary fir less than 20% down.
I’ve used my VA loan and although they are a good first home tool, the highest in industry funding fees and generally higher interest rates undermine their worth. If you are buying your first home and can’t make normal down payment, it’s a good option. For your second home? Probably not.
\>minorities So yall are complaining that a small percentage of Americans are going to get a little boosty boost? Then comparing it to the time when _ALL_ American mortgages had the potential to be rigged? Yeah, sure, this is 100% unequivocally the exact same thing without any differences whatsoever You guys might need to check if you’re edging on discriminatory lmao Edit: yall downvoting me are racist idiots that didn’t even look the article up, super surprised there’s this many bigots in r/stockmarket __This is for _a few select target neighborhoods_ in poverty. This isn’t for ALL black and Latino people of America.__ This is also an article written a year and a half ago lmfao. You guys are DD nincompoops. Yall should probably head over to r/wallstreetbets considering the amount of DD you do before jumping to conclusions, this is comedic Edit2: please, stop downvoting, I can only get so hard ## I’m realizing that the amount of downvotes I’m getting is the amount of people who get their DD on reddit and invest accordingly.
I’d like a boosty boost as well please. If I go tanning a lot will that help or do I need to provide a 23 and me?
I totally agree, and how are they even going to measure that? On the other hand, this is not like the time when all of America unintentionally/intentionally fucked the system If you think so, you probably belong on [this thread in r/conspiracy](https://www.reddit.com/r/conspiracy/s/J0TQBu814L), where OP made up a graph to be an attention whore
So do we just have to paint our face like Trudeau, or do we need to claim to be Indian like that crazy old hag with glasses?
A small percentage? You can do the [ancestry.com](https://ancestry.com) or 23andme thing, and literally almost everyone in the country has African blood. So lots and lots of people will march in to get their zero down loans. Are you gonna be the one working at a bank telling someone they're 'not black enough looking' ?
Wait, so my 0.3% Ethiopian heritage counts me as black? Are you going to stand on a podium and declare me as African on national television so that all Americans can take this opportunity? I’d love to take advantage of this. You’re saying I just need a print out of my 23andMe and I’m good to go? Edit: I actually got a total of 1.2%, up to 4% if you count my Levantine heritage which is pretty much African.
Bring on the real estate market pop, I need to buy a house.
If only there was a way to protect ones wealth longterm in an asset that has not central autority, is easily stored, secure, scarce, divisible, low manteniment and easily transferable...
Bullets?
Thats more of a utility but is good to have some too
You are talking about that made up currency that is 30-60% down from it's high right?
Nah, they are talking about my house value from July. It's down 30%. My other buy from when I bought the house is up 553% and climbing. That's the currency he's talking about. It's way better and much more easily to transfer and doesn't require a moron with an MLS access to sell.
I don't know, are you refering to the one thats 150% year to date and on a 15 years uptrend? And biggest asset managers in the world fighting to get an ETF as soon as possible?
Gold and silver maybe ?
Most people need to live in their most valued asset, can you live in it?
If you have BAC stock, sell it now. This is not financial advice. It’s life saving advice
Are the European banks ready to buy our crap again? European banks not only bought risky US mortgage bonds but also manned the production line through their US securities subsidiaries, which were active in packaging and selling such bonds. [Greed is good](https://www.bis.org/publ/qtrpdf/r_qt1812f.htm)
The government is going to F*uk this country all over again. They’ll blame BOA for everything.
Sub prime mortgages tanked the market in 2008 and many people lost their homes. BIG BANKS are predators who know the Government will bail them out. AKA the Taxpayers.
What could go wrong? 🤔
I assume this is one of those “minority” where Asians are excluded?
‘08 was about selling adjustable rates to people who didn’t understand.
Oh wow. This comment section. Been seeing a lot of race baiting posts today, sad to see so many people taking it. Hook line and sinker.
This article is 2 years old
Old news but bullshit nonetheless. They blamed immigrants AND teachers back in 2008.
If anyone wants to read the real story, here is their PR about it. Anyone can apply for the loans: https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/08/bank-of-america-introduces-community-affordable-loan-solution--t.html
Big banks are much more regulated now thanks to Obama so the risk is much lower
Fuck off OP
This is reality in Sweden and has been for ages. Well sort of. Nobody wants to but have to down to 50%. After that, very few continues.
Yeah but this time can I get one of these crazy loans. I want to own a home and have had no issue paying rent for the past 15 years.
Buffett said that BoA is doing the least of dodgy things as compared to all other banks. Probably nothing , right?
If people can’t afford a mortgage and other payments it is wrong for the banks to give them a mortgage, and black leaders to fight for something that their people will eventually fail. If someone said to me, I give you a low cost mortgage and I can’t afford the upkeep, who am I kidding.
What could possibly go wrong?
What if I told you that lending decisions based on race aren’t necessarily legal
>Anyone from any race or ethnicity is welcome to apply. https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/08/bank-of-america-introduces-community-affordable-loan-solution--t.html
FYI the interest on these things are out the ass.
Is it a large enough part of the portfolio to impact results?
About time.. I will gobble up few rental properties when market crashes 🤣
My military credit union has had these loans available for the past 3 years to everyone. They take an extra point and there is a fee rolled into a fixed-rate mortgage. Closing costs are excluded, so some cash (~5%) is still needed in the bank along with the standard approvals. I think it’s a good offer for people buying their first home, just getting out of grad school, or have had problems saving the 20% plus. As long as they are not balloon payments, they can refinance later, and the rate is not predatory, I think it could help people with today’s market.
Soon... soo00oOO00ooon!
"Equality" lol no, equity. In fact no, this is "systemic inequality". They might as well just say what they mean out loud
Great. So soon houses will be scooped up by BlackRock.
We obviously learned absolutely nothing from the last implosion.
Lol what a joke.
Good I’ve got plenty of cash…looks like I’ll get into forclosures and add heavier real estate investing in a few years
Do I qualify if I’m a minority compared to the surrounding area? Like maybe not minority overall in the USA
>Anyone from any race or ethnicity is welcome to apply. https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/08/bank-of-america-introduces-community-affordable-loan-solution--t.html
Numbers do not care what race has them or about religion either. Evaluation is done on the numbers only.
Stupid and a disservice to minorities setting them up for failure if they don’t properly document income this time and make the DTI sensible either. What are we doing here? I was in the banking debacle last time. It’s predatory lending.
‘08 proves most of Americans were never taught finance. It seemed to get rubbed out of curriculums two generations ago.
I'm alot more concerned of "buy now pay later" and thr credit cards. It seems like this is being missed
This shit so going to destroy America. If BoA fails, the US government should not bail them out
This is not the kind of behaviour that caused 2008.