Bank of America is under fire for a new mortgage lending program geared specifically to black and Hispanic homebuyers.
The loans, to be made in select minority communities throughout the country, require no down payments and no closing costs. Although white homebuyers in those neighborhoods who meet certain criteria are eligible for the program, the North Carolina-based lender said it is designed explicitly for blacks and Hispanics.
“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,” A.J. Barkley, head of neighborhood and community lending for Bank of America, said.
The lending scheme, called the Community Affordable Loan Solution, is being rolled out in certain neighborhoods in Charlotte, Dallas, Detroit, Los Angeles, and Miami. It also has no minimum credit score requirement and buyers won’t have to pay mortgage insurance, which buyers who don’t put 20% down typically must pay.