Bank of America to Offer Zero-Down Payment Mortgage Loans for Black, Hispanic Homebuyers
Last week, the Bank of America released a new initiative, the “Community Affordable Loan Solution” to remove down payment requirements and closing costs for black and hispanic first-time homebuyers. The opportunity will be available in select “Black/African American and/or Hispanic-Latino neighborhoods” located in in Charlotte, Dallas, Detroit, Los Angeles and Miami. Additionally, the plan does not require the buyer to purchase mortgage insurance, and has no minimum qualifying credit score.
Fox Business explicitly states that applicants of not need to be black or hispanic to apply for the program, however Bank of America makes it clear in their press release that this is the targeted demographic. “According to the National Association of Realtors, today there is a nearly 30-percentage-point gap in homeownership between White and Black Americans; for Hispanic buyers, the gap is nearly 20 percent.” the release reads.
AJ Barkley, head of neighborhood and community lending for Bank of America, stated, “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.”
It is pretty evident that this initiative is at least somewhat discriminatory against whites, Asians, and other races that don’t fall into the specific categories outlines. Oddly enough, it didn’t address the fact that about 17% of hispanics have completed foreclosures, compared to 11% of blacks, and 4.5% whites. The cause of the disparity is not because of systemic racism, but because of irresponsible lending on behalf of banks, and irresponsible borrowing on behalf of buyers. Understandably, there are unforeseen circumstances such as the loss of a job, that would cause someone to lose their home. This of course is a very horrible circumstance, however not racially motivated.
Contrary to popular belief, not everything in life can be chalked up to racial inequities.
