This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation, offer or solicitation for the purchase or sale of any security, financial instrument, or strategy. (Jeremy Erickson/Bloomberg via Getty Images / Getty Images). Hispanic-owned businesses make up a significant portion of the small business landscape. GET FOX BUSINESS ON THE GO BY CLICKING HERE. Check your mortgage or refinance application status. The $51.7 billion-asset bank announced Tuesday that it received an "outstanding" rating in . new Community Affordable Loan Solution will be available in certain cities for Black and Hispanic/Latino neighborhoods. Bank of America is launching a mortgage with no down payment or closing costs that aims to promote homeownership in minority communities in five U.S. cities. Bank of America: Zero-down-payment mortgage for first-time buyers To qualify for the Bank of America program, applicants must seek to buy a home in one of the five cities and complete a U.S. Department of Housing and Urban Development-certified homebuyer course. Interactive projections with 10k+ metrics on market trends, & consumer behavior. Warning: This system is for BAC business use only. Homeownership strengthens our communities and can help individuals and families to build wealth over time, said AJ Barkley, head of neighborhood and community lending for Bank of America. (WFC -1.01%), the nations third largest bank by assets, is stifling Black and Hispanic homeownership by rejecting refinance applications sent in by Black homeowners, while approving almost three-quarters of those sent in by white applicants. See our latest press releases, news articles or download our press kit. Others say the program is a big step toward closing the home ownership gap for Black Americans. The average rate for a 30-year fixed mortgage climbed to 5.66% for the week ending Sept. 1, according to recent data from mortgage lender Freddie Mac. Bank of America said 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. It is unclear what the planned size of the program is. The Charlotte-based bank will also not require mortgage insurance an additional fee that buyers can face if they put down less than 20% of a home's purchase price for the program. The fee is higher with a zero down payment, and maximum loan limits vary by county. Before joining The Times, she covered British politics for the The Wall Street Journal. 2023 CNBC LLC. A local Bank of America mortgage loan officer can help you find the home loan that is right for your needs. Bank of America Introduces Community Affordable Loan Solution to Who will decide US v. Trump jurors or voters? Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. In related news, Bank of America today announced the launch of a Small Business Down Payment Program to drive business growth and help create generational wealth opportunities for minority and women business owners. MLPF&S is a registered broker-dealer, registered investment adviser, MemberSIPCand a wholly owned subsidiary of BofA Corp. Trust and fiduciary services are provided by Bank of America Private Bank, a division of Bank of America, N.A., Member FDIC, and a wholly-owned subsidiary of Bank of America Corporation (BofA Corp.). Black and Latinx homeowners are finally getting a lift from one of the nations largest banks in the newly revived real estate market. 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. Bank of America announces zero down payment, zero closing cost Applying for a Mortgage: How to Apply & Home Loan Tips - Bank of America It allows us to revitalize minority communities, she said in an interview, noting that anyone looking to buy a home in one of the designated neighborhoods could apply for a loan under the program. For more Bank of America news, including dividend announcements and other important information,registerfor email news alerts. THE HILL 1625 K STREET, NW SUITE 900 WASHINGTON DC 20006 | 202-628-8500 TEL | 202-628-8503 FAX. Housing wealth has increased in 917 metropolitan areas from $15.9 trillion in 2010 to $24.1 trillion over a 10-year period. 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, Barkley said. Through this commitment, Bank of America has already helped more than 36,000 people and families become homeowners, having provided more than $9.5 billion in low down payment loans and over $350 million in non-repayable down payment and/or closing cost grants. Welcome to Mortgage Servicing's Client Access area. - Bank of America Reach an engaged audience of decision-makers. No minimum credit score or mortgage insurance is required. Browse our upcoming and past webinars and other events. Bank of America to help minorities buy first homes with new mortgages Bank of America Corp. is drawing a mixed reaction in social media to a zero-down-payment mortgage program aimed at bringing first-time home ownership within closer reach of more African. Certain neighborhoods in select cities are piloting the program, including Los Angeles, Miami and Dallas, the outlet reported. First published on September 1, 2022 / 5:46 PM. Eligibility is based on income and home location. It requires no mortgage insurance or minimum credit score. Two-thirds of the program's loans and grants made through the program have helped multicultural clients become homeowners, according to the firm. Learn more about our mission and how Insider Intelligence came to be. The program will launch in select markets -- Atlanta, Chicago, Charlotte, Dallas and Los Angeles -- with plans to expand in 2023. House lawmakers want 5.2 percent pay raise for troops, Miami authorities warn of possible disruption ahead of Trumps arraignment, Trump arrives in Florida ahead of court appearance: live updates. The Breakdown You Need To Know: Black homeownership currently stands at just 45%, compared with white homeownership at 72%. Sep 15, 2022 Updated Sep 15, 2022 0 "Homeownership strengthens our communities and can help individuals and families to build wealth over time," said AJ Barkley, head of neighborhood and community lending for Bank of America. In addition, if the housing market slumps, buyers are more at risk of being "underwater" meaning they owe more money than their home is worth. For White households, the homeownership rate is around 72.1%. 2023 Bank of America Corporation. Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as MLPF&S or Merrill) makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation (BofA Corp.). Insider Intelligence delivers leading-edge research to clients in a variety of forms, including full-length reports and data visualizations to equip you with actionable takeaways for better business decisions. Exclusive time with the thought leaders who craft our research. We launched a new loan program, Community Affordable Loan Solution, in 5 US markets last week, Susan Atran, a spokesperson for Bank of America told Check Your Fact. BAC routinely monitors use of our computers and systems and may . After buying bank accused of redlining, Cadence gets top CRA score "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.". CultureBanx reported that Black and Hispanic households are not reaping the real estate gains felt by other demographics, due to home prices appreciating so much that families of Color are being out-priced out of their very own neighborhoods. Alyssa Farah Griffin: Trump indictment worse than what 'greatest detractors AT&T, Verizon or T-Mobile? New Bank of America Mortgage: No Down Payment, Credit-Score - Insider The program includes affordable mortgages, grants and educational opportunities. Applicants must complete a homebuyer certification course prior to applying. In that respect, it is significant, he said. Among the recommendations were down payment assistance, lower mortgage insurance premiums and a credit . 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Mortgages - Home Mortgage Loans from Bank of America Chris Herbert, the managing director of the Joint Center for Housing Studies at Harvard University, said that the Bank of America program could go a long way toward helping low- and middle-income people and families buy homes, since a lack of savings for a down payment was a big barrier. (RELATED: Do Donations Made Through A Link On The Black Lives Matter Website Go Directly To Democratic Candidates? ICE Limitations. 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. To date, the program has helped more than 36,000 individuals and families become homeowners. It is true that the program was launched in certain markets, such as African-American and Hispanic neighborhoods. Bank of America Corporation stock(NYSE: BAC)is listed on the New York Stock Exchange. Mixed reviews: Bank of Americas program has met with mixed reactions from people in Black communities. However, there are certain risks and downsides that come along with zero-down-payment mortgages. The original press release does state that the program, called the Community Affordable Loan Solution, would be launched in designated markets, including certain Black/African American and/or Hispanic-Latino neighborhoods., However, the release does not state race or ethnicity would be a part of any applications. @jggross, A version of this article appears in print on, Bank of America Tests No-Down-Payment Mortgages in Black and Hispanic Neighborhoods, https://www.nytimes.com/2022/09/01/business/zero-down-payment-mortgages.html. In 2064, the average white family will likely possess $2,782,727 in wealth while the average Black family wealth will be $789,164, according to a report by Elliott and Abacus Wealth Partners, thats an astonishing 70% disparity. Customers using the program will be evaluated for a home loan not by credit scores, but rather factors such as their history of making rent, utility, phone and auto-insurance payments on time, BofA said in a statement Tuesday. She said that the bank aimed to expand the program to other cities in the future, and that it was also offering educational resources to help buyers navigate the process. Bank of America offers zero-down mortgage in minority communities Industry benchmarks for the most important KPIs in digital marketing, advertising, retail and ecommerce. Editor's note: The initial version of this story wrongly stated that only Black and Hispanic borrowers are eligible for a mortgage under Bank of America's Community Affordable Loan Solution program. Insurance and annuity products are offered through Merrill Lynch Life Agency Inc. (MLLA), a licensed insurance agency and wholly-owned subsidiary of BofA Corp. Investment products offered through MLPF&S and insurance and annuity products offered through MLLA: Bank of America" is the marketing name for the global banking and global markets business of Bank of America Corporation. In 1968, the Fair Housing Act banned racial discrimination in the sale and rental of housing for both government and private companies. Specifically, Wells Fargo You Can Now Buy a Home With Just 1% Downbut Should You? - realtor.com Bank of America Corp. started a trial program aimed at helping first-time homebuyers in Black and Hispanic neighborhoods by offering mortgages that dont require down payments, closing costs or minimum credit scores, all considered longtime obstacles to narrowing the gap between White and minority ownership. The interest rate-sensitive housing market has started to cool noticeably in recent months as the Federal Reserve moves to tighten policy at the fastest pace in three decades. The new program is geared toward. Banks have contributed to racial gaps in homeownership rates by approving fewer loans with less favorable terms for Black applicants than for white borrowers with similar credit profiles, Dr. Ray said. HOMEBUILDERS SEE 'HOUSING RECESSION' AS SENTIMENT PLUNGES TO FRESH 2-YEAR LOW. Fox Newss Turley: Trump could face terminal sentence if DOJ proves Senate GOP leaders break with House on Trump indictment. ). And the competitive housing market has made it even more difficult for potential homebuyers, especially people of color, to buy homes. In addition to expanding access to credit and down payment assistance, Bank of America provides educational resources to help homebuyers navigate the homebuying process, including: For more information, contact Bank of America at 1-800-641-8362.. The bank said the new effort will operate as a Special Purpose Credit Program. Certain links may direct you away from Bank of America to an unaffiliated site. What does it do? Bank of Americas Trump vows to appoint special prosecutor to go after Biden if former Watch live: Miami officials hold press conference on security ahead of Trump Conservative revolt in House alarms Senate GOP. . Those are open questions, he said. (Paul Sakuma / ASSOCIATED PRESS) By Mitchell Parton 8:00 AM on Aug 30, 2022 CDT Bank of America has chosen Dallas and four other cities to pilot a new nationwide program aimed to help. But disparities in access to mortgages have persisted for decades, according to researchers. 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.. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. There are plans to expand to additional markets in 2023. Some are comparing the program to the subprime loan crisis that kickstarted the 2008 financial crisis. "But there are solutions, and Black homebuyers shouldn't lose faith that they'll never be able to become homeowners," he said. Bank of America is launching a trial program offering mortgages for first-time homeowners that do not require down payments, closing costs or minimum credit scores, the bank announced this. White households are now 40% more likely to be able to afford to buy a home compared with Black households, the association said. Tune in to eMarketer's daily, weekly, and monthly podcasts. Applicants won't need mortgage insurance after they've acquired the loan. Bank of America is offering zero down payment mortgages with no closing costs for first-time homebuyers in certain Black and Hispanic neighborhoods in a new program designed to chip away at. A recent report from LendingTree Bank of America said 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. AJ Barkley, the head of neighborhood and community lending for Bank of America, said the goal of the program was to help individuals and families, particularly Black and Hispanic people, build wealth over time. "If you have a program with no down payment and no closing costs, it can help minority families to fill the gap between available savings and upfront cash needed," said Zhu, an expert on mortgage financing and housing affordability. Mortgage and Refinance. What Is The Surprising X Factor For Retiree Health? Prospective buyers must also complete a homebuyer certification course provided by Bank of America and federally approved housing counseling partners before applying for the program. Earlier this year, the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, unveiled a sweeping plan to address discrimination in access to homeownership. Media reports about the program have stated race is not a factor. Bank of America's headquarters in Charlotte, N.C . Khristopher J. Brooks is a reporter for CBS MoneyWatch covering business, consumer and financial stories that range from economic inequality and housing issues to bankruptcies and the business of sports. A Bloomberg News analysis in March of federal mortgage data found that Wells Fargo approved only 47 percent of refinancing applications filed by Black homeowners in 2020, compared with 72 percent of applications submitted by white homeowners. / MoneyWatch. Sign In Access All Charts and Data Insider Intelligence Inc. All Rights Reserved. There remained a substantial racial gap in homeownership in 2020, according to the most recent data from the National Association of Realtors. Unfortunately, houses in Black communities are worth less than 50% of homes in white communities, further perpetuating the inequality that prevents People of Color from building stable economic security. Banks that fail to show theyre doing so risk losing out on talent. Bank of America to offer zero-down payment mortgages in certain Black Unauthorized use is a crime and may be prosecuted under state and federal law. found the mortgage denial rate for Black borrowers is twice that of the overall population. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Bank of America announces zero down mortgage payment program for Black FHA and VA Loans from Bank of America Data is a real-time snapshot *Data is delayed at least 15 minutes. Bank of America: Zero-down-payment mortgage for first-time buyers Rates of homeownership vary dramatically across racial and ethnic groups, thanks to differences in wealth and the legacy of historic discrimination. The VA funding fee is non-refundable. The program called the Community Affordable Loan Solution will be available to people in certain predominantly Black and Hispanic neighborhoods in Charlotte, Dallas, Detroit, Los Angeles and Miami. "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," AJ Barkley, head of neighborhood and community lending at Bank of America, said in a statement. This puts them at a disadvantage at all stages of home ownership. The program will be tried out in certain predominately Black and Hispanic areas of Dallas, Detroit, Los Angeles, Miami and Charlotte, North Carolina. It May Astound You, 5 Automatic Student Loan Forgiveness Initiatives That Are Not Before The Supreme Court. Headlines misconstrued it. Before completing an application, you'll want to ensure you have these 6 things: Complete bank statements for all financial accounts, including investments (for the last 2 months) Signed personal and business tax returns (all pages and relevant schedules) If self-employed, a copy of most recent quarterly or year-to-date profit/loss statement. Bank of America agreed to pay $335 million, According to the National Association of Realtors. First-Time Homebuyer Online Edu-Series,. Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower. BofA's mortgage program gets mixed reviews - Insider Intelligence Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue. And the city of Miami sued JPMorgan Chase in 2014, accusing the bank of predatory lending in communities of color. Bank of America said 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. Spanning five core coverage areas and dozens of industries. Bank of America Loan Targets Black, Hispanic Homebuyers Eligibility for the loan is based primarily on income and home location.. In fact, over the past 10 years, Latinos are starting businesses at a quicker pace than other startups44% growth in the number of businesses, compared to just 4% for non-Latino-owned companies, according to a study from the Latino Business Action Network (LBAN) and Stanford University. According to theFederal Deposit Insurance Corporation, creditors can establish the programs under Equal Credit Opportunity Act to meet the credit needs of specified classes of persons.. Member FDIC.Equal Housing Lender Statistics and metrics included in our ESG documents are estimates and may be based on assumptions or developing standards. 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. articles a month for anyone to read, even non-subscribers! This article originally appeared in Insider Intelligences Banking Innovation Briefinga daily recap of top stories reshaping the banking industry. Applicants do not have to be Black or Hispanic/Latino to qualify for the loans. Rob Wile is a breaking business news reporter for NBC News Digital. Signage is displayed outside a Bank of America Corp. branch in Alameda, California. There are no limits on the number of loans involved in the program; any property must be located in census tracts that are more than 50% African American or Hispanic, the bank said. Log in to Manage your Bank of America Mortgage and Home Equity Accounts Under the trial program, which was announced on Tuesday, Bank of America will offer loans to people in certain predominantly Black and Hispanic neighborhoods in Charlotte, N.C.; Dallas; Detroit; Los Angeles and Miami. The term redlining, which refers to the practice of denying mortgages in predominantly Black neighborhoods, comes from government homeownership programs created under the 1930s-era New Deal that offered government-insured mortgages as a form of federal aid. 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. To help narrow a homeownership gap among Black and Hispanic-Latino communities, Bank of America is launching new zero down payment, zero closing cost mortgage products to help people in minority communities buy their first homes. The Community Affordable Loan Solution is available in designated markets, including certain Black/African American and/or Hispanic-Latino neighborhoods in Charlotte, Dallas, Detroit, Los Angeles and Miami. VA funding fee applies except as may be exempted by VA guidelines. The initiative will later expand across the banking giant's footprint in 2023. Copyright 2023 CBS Interactive Inc. All rights reserved. For white households, the homeownership rate was 72.1%. The company provides unmatched convenience in the United States, serving approximately 67 million consumer and small business clients with approximately 4,000 retail financial centers, approximately 16,000ATMsand award-winning digital banking with approximately 55 million verified digital users. According to the National Association of Realtors. Find a Local Mortgage Loan Officer at Bank of America BAC This material may not be published, broadcast, rewritten, or redistributed. A Bank of America logo is seen in New York City, New York, U.S. January 10, 2017. Datafrom the Urban Institute also shows troubling racial differences in mortgage denial rates, with Black and Latino households bearing the brunt of the burden. This is forward thinking, and something thats important to do, he said. The Black homeownership rate was lower in 2020 than it was in 2010, the NAR said. In a report published in January, the National Community Reinvestment Coalition, a fair-lending advocacy group, found that the private mortgage market was providing loans in only 13.7 percent of low- and moderate-income neighborhoods, even though they represented 30 percent of neighborhoods.
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