Is Bank Of America’s Zero-Down Mortgage Program For Minority Communities A Good Thing?

Shelley Stewart, senior partner at McKinsey and leader of McKinsey's Institute for Black Economic Mobility, joins Forbes Newsroom to discuss their latest research about Black consumers in financial services.

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[norm]

0 down and an unfixed mortgage rate is what caused people to abandon there homes last go around.

[teresawalker]

I'm a 29 year veteran. This shit pisses me off. I earned my benefits and sacrificed much physically, mentally and emotionally. THIS is what you call entitlement.

[shel_]

Didn't the DEMOCRATS DO THIS LAST TIME????

[mattwilliams]

Hmmm, where have we seen this tried before??? And how did it work out?

[jennyjenny]

This happened already.
Save your money!

[browneyelady]

We've seen this movie before. It didn't work then and why would you think it would work now is beyond me. So again you're giving a mortgage to people who don't have any credit and waving all fees associated with getting that mortgage... I say brilliant move. Let's just sit back and wait for the next crash.

[dennisyoung]

Wasn't it ideas like this that caused the last housing bubble?

[GoldenTroutBFS]

At this point, can't anyone claim they are any race or gender that they want?

[glane]

Um isn’t this illegal federally?
You can’t discriminate against non minorities.
Everybody gets the same treatment under the law (suppose to anyway)
Lawsuits need to filed more and more against this kind of stuff

[bluesdawg]

The Bottom line is if you aren't making enough money to save for a down payment you can't afford a home. After you buy a home the cost of ownership become a reality. Plumbing, roof, property taxes and more.

[hawkeyeted]

This is the blueprint for another housing bubble like that in 2008.

[Poisonedblade]

Step 1: Give money to people who can't pay it back.
Step 2: ???
Step 3: Profit!

[bro]

When you determine a set path based on race, then you are discriminating against the races being excluded.

[Chris-lfdl]

Of course they know that it will not work out. The end result of such a move will be that most of those properties will end up being foreclosed. The bank will acquire those foreclosed properties and then bank will ask the government to bail them out and will end up with the foreclosed property and the bank will also get financial help
from the government. Government will bail them out. Similar situation to 2008. And the homeowner will loose the property and will screw up their credit .

[jogmas]

This is predatory and what wealth can they possibly accumulate when housing is so highly overly priced ???

[zeek]

Its good to place people in areas where you want to keep them. Maybe certain voting zones or away from white people

[alant]

Hmmmm… let me think…. How about it’s “racist”.
And this is exactly part of what happened and contributed to the 2008 housing crash. They are giving home loans to people who can’t afford homes. And if people have bad credit… then maybe they should clean up their credit BEFORE taking on a home loan.

[Teri_B.]

EVERYONE who owns a home knows the mortgage payment is just one part of the expenses. If you have NO savings & NO money to put down, chances are you can't afford a home. If you can afford to pay double the mortgage payment each month, you should be ok. Maintenance & upkeep are incredibly expensive. A roof for an average size home is $15k. A new A/C is $10k. And, unexpected costs ALWAYS arise & are guaranteed with homeownership.

I had to replace my roof after hail damage & the deductible was $5k. 3 wks after the new roof was installed, a tree fell on my home during a storm. Tree removal ➕ the deductible for another new roof was $7k. So in addition to normal maintenance, upkeep, mortgage payments, insurance, etc. it cost $12k in 9 months for something completely out of my control.

Those striving to be homeowners should take into account ALL aspects & costs of ownership. 😊

[Teri_B.]

Virtue signaling instead of virtuous acts... the Dem way. 😑

[TheLincolnrailsplitt]

Isn't thus a re-run of the mortgage prime collapse which cause the 2008 financial crisis?