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Bank of America just launched a zero down payment mortgage in 21 cities

businessinsider.com

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Re: Bank of America just launched a zero down payment mortgage in 21 cities

#11

Post by 015UUZn8aEvW »

logicalmonster wrote: post #2

Different media outlets have publicized this story by claiming that this program was just for Black and Latino buyers (pretty racist for a company to sell different products and have different policies for people based on race), while this story says that this program is in historically Black and Latino neighborhoods. Kind of a difference if it's open to all people or not. Which is it? Personally, I'd say that the ''…

Restrictive lending standards for minorities is redlining, which is racism. Permissive lending standards for minorities is predatory lending, which is also racism.

Re: Bank of America just launched a zero down payment mortgage in 21 cities

#12

Post by mijamo »

015UUZn8aEvW wrote: post #11
logicalmonster wrote: post #2

Different media outlets have publicized this story by claiming that this program was just for Black and Latino buyers (pretty racist for a company to sell different products and have different policies for people based on race), while this story says that this program is in historically Black and Latino neighborhoods. Kind of a difference if it's open to all people or not. Which is it? Personally, I'd say that the ''…

Restrictive lending standards for minorities is redlining, which is racism. Permissive lending standards for minorities is predatory lending, which is also racism.

That actually sounds right. Anything that treats people differently because of a so called "race" is racist.

Re: Bank of America just launched a zero down payment mortgage in 21 cities

#13

Post by logicalmonster »

bergenty wrote: post #7
logicalmonster wrote: post #2

Different media outlets have publicized this story by claiming that this program was just for Black and Latino buyers (pretty racist for a company to sell different products and have different policies for people based on race), while this story says that this program is in historically Black and Latino neighborhoods. Kind of a difference if it's open to all people or not. Which is it? Personally, I'd say that the ''…

Well it’s not, Bank of America says it’s available to first time buyers of all races so your insinuation is actually racist. On a side note, I can’t imagine a better reason for a government bailout— if it results in tens of thousands of first time buyers owning a home, many of whom would continue to do so regardless of the bailout.

> Well it’s not, Bank of America says it’s available to first time buyers of all races

That's what I was asking for above. Both the media reporting about this and even their own press release makes this story a bit ambiguous.

> so your insinuation is actually racist.

Normally I'd smirk in being called racist for advocating treating all races equally, but I'd like to simply state that the media reporting on what this program actually is has been extremely confusing. That's why I asked what this program was for up above and pointed out that a program that treated different races differently would be racist.

> On a side note, I can’t imagine a better reason for a government bailout— if it results in tens of thousands of first time buyers owning a home, many of whom would continue to do so regardless of the bailout.

I view this as penny-wise and pound-foolish thinking. The resulting economic fallout of getting people in homes that they can't afford in a downturn and the resulting bailouts that would happen is much worse for most poor people in the long-run.

Re: Bank of America just launched a zero down payment mortgage in 21 cities

#14

Post by tarakat »

logicalmonster wrote: post #2

Different media outlets have publicized this story by claiming that this program was just for Black and Latino buyers (pretty racist for a company to sell different products and have different policies for people based on race), while this story says that this program is in historically Black and Latino neighborhoods. Kind of a difference if it's open to all people or not. Which is it? Personally, I'd say that the ''…

> this story says that this program is in historically Black and Latino neighborhoods. Kind of a difference if it's open to all people or not.

Even if open to all people, this is a clear case of disparate impact [1], which runs afoul of the Civil Rights act. But I wouldn't hold my breath for an even application of the law.

[1] https://en.wikipedia.org/wiki/Disparate_impact

Re: Bank of America just launched a zero down payment mortgage in 21 cities

#15

Post by rocket_surgeron »

015UUZn8aEvW wrote: post #11
logicalmonster wrote: post #2

Different media outlets have publicized this story by claiming that this program was just for Black and Latino buyers (pretty racist for a company to sell different products and have different policies for people based on race), while this story says that this program is in historically Black and Latino neighborhoods. Kind of a difference if it's open to all people or not. Which is it? Personally, I'd say that the ''…

Restrictive lending standards for minorities is redlining, which is racism. Permissive lending standards for minorities is predatory lending, which is also racism.

I suppose this is racism the same way SNAP is classism.

"WhY cAn'T i GeT fReE fOoD???? This is class discrimination!"

-015UUZn8aEvW

Re: Bank of America just launched a zero down payment mortgage in 21 cities

#16

Post by aaaaaaaaata »

hnburnsy wrote: post #9
logicalmonster wrote: post #2

Different media outlets have publicized this story by claiming that this program was just for Black and Latino buyers (pretty racist for a company to sell different products and have different policies for people based on race), while this story says that this program is in historically Black and Latino neighborhoods. Kind of a difference if it's open to all people or not. Which is it? Personally, I'd say that the ''…

Insurance companies are not allowed to redline (excluding an area where they offer their product), and then use the excuse of 'not targeting by race' by claiming they excluded everyone, not just POC. Feels like the reverse of offering a product only in a certain area should be true.

Someone earned their bonus here.

Re: Bank of America just launched a zero down payment mortgage in 21 cities

#17

Post by logicalmonster »

mechagodzilla wrote: post #10
logicalmonster wrote: post #2

Different media outlets have publicized this story by claiming that this program was just for Black and Latino buyers (pretty racist for a company to sell different products and have different policies for people based on race), while this story says that this program is in historically Black and Latino neighborhoods. Kind of a difference if it's open to all people or not. Which is it? Personally, I'd say that the ''…

Historically in the US, white people and white neighborhoods have gotten substantially better loan availability and terms (and disproportionately higher appraised home values) than minorities or people living in neighborhoods with large minority populations. See: https://en.wikipedia.org/wiki/Redlining for a very concrete example.

> white people...have gotten substantially better loan availability

I've heard this said a lot of times, but this feels more like a slogan than an actual data point to me. Bad statistics are endemic in these sorts of discussions. Is this statistic comparing all Black people to all White people or is this a clear apples-to-apples comparison?

And where do other races like say Asians fit into this here? Apparently, Asians make even more in America than average White people (according to stats I've seen) so do they get better loan terms than White people? And if they do, is it because of their race, or because they make more money? If racism exists, is it affecting Asians in the same way? And if not, why not?

I'm not going to completely dismiss your comment and I want everybody to do well, but I think it merits a much deeper investigation for full understanding.

Re: Bank of America just launched a zero down payment mortgage in 21 cities

#18

Post by proffeatur8 »

mechagodzilla wrote: post #10
logicalmonster wrote: post #2

Different media outlets have publicized this story by claiming that this program was just for Black and Latino buyers (pretty racist for a company to sell different products and have different policies for people based on race), while this story says that this program is in historically Black and Latino neighborhoods. Kind of a difference if it's open to all people or not. Which is it? Personally, I'd say that the ''…

Historically in the US, white people and white neighborhoods have gotten substantially better loan availability and terms (and disproportionately higher appraised home values) than minorities or people living in neighborhoods with large minority populations. See: https://en.wikipedia.org/wiki/Redlining for a very concrete example.

No post body was provided.

Re: Bank of America just launched a zero down payment mortgage in 21 cities

#19

Post by logicalmonster »

cercatrova wrote: post #6
ericns wrote: post #5

Earlier quoted context omitted.

Quoted post unavailable.

Nowhere in this article is there a relation to bank bailouts. And I don't need your snide quips either.

> Nowhere in this article is there a relation to bank bailouts.

Of course there is (when you remember the 2008 housing crash and think a step or two ahead)

During good times, putting lots of poor-ish people into homes they can just barely afford is a feel-good story.

During bad times, when people get laid off and many of these people can likely no longer afford their home, it creates a shit-storm of epic proportions that negatively affects everybody.

Re: Bank of America just launched a zero down payment mortgage in 21 cities

#20

Post by cercatrova »

logicalmonster wrote: post #19
cercatrova wrote: post #6

Earlier quoted context omitted.

Nowhere in this article is there a relation to bank bailouts. And I don't need your snide quips either.

> Nowhere in this article is there a relation to bank bailouts. Of course there is (when you remember the 2008 housing crash and think a step or two ahead) During good times, putting lots of poor-ish people into homes they can just barely afford is a feel-good story. During bad times, when people get laid off and many of these people can likely no longer afford their home, it creates a shit-storm of epic proportions…

Does it affect everybody? I and many people I know didn't feel any effects from 2008. If anything it just gave us a chance to buy homes that were previously skyrocketing in price.
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