MoneyWise, a financial site reaching millions of readers a month,
warned that the program could easily “backfire.”
“While credit scores aren’t always an accurate barometer of a buyer’s purchase power or ability to make timely payments, advocates worry the interest rates required to make up for the low bar the lender is setting could set minority buyers up for failure,” MoneyWise explained.
Harkening back to the 2008 housing crisis, the financial site noted that much of the issues were driven by banks doling out risky loans to unqualified buyers.
Notably, Bank of America was
bailed out by tens of billions of dollars by the American taxpayer due to the crisis.
The Community Affordable Loan Solution program seems to be replicating the problems, the site suggested.
A major financial outlet last week warned that a controversial lending scheme from Bank of America aimed at helping black and Hispanic homebuyers could actually negatively impact them. Bank of America’s so-called Community Affordable Loan Solution offers loans with no down payments and no...
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