E-Paper
'It's anti-racism,' Vivek Ramaswamy calls out Bank of America's ‘bias’ for Black, Hispanic communities
“Mark my words: This act of “anti-racism” today will be called “systemic racism” tomorrow," Vivek Ramaswamy said
Vivek Ramaswamy blasted Bank of America for its move to provide home loans “without down payment” to people from Black and Hispanic Communities.
Taking to X, Ramaswamy wrote, “Mark my words: This act of “anti-racism” today will be called “systemic racism” tomorrow - when minorities end up defaulting on these loans.”
What is Bank of America’s new move?
Bank of America stated that Community Affordable Loan Solution is available for properties in Black/African American and Hispanic-Latino communities in places including Charlotte, Dallas, Detroit, Los Angeles and Miami. Eligible people can obtain an affordable loan to buy a home as a result of this move.
“The Community Affordable Loan Solution is a Special Purpose Credit Program which uses credit guidelines based on factors such as timely rent, utility bill, phone and auto insurance payments,” Bank of America said online, adding that no mortgage insurance or minimum credit score will be needed.
The eligibility of the individual is based on income and home location, it said, adding that any individual from “any race or ethnicity is welcome to apply.” “This new program is in addition to and complements Bank of America’s existing $15 billion Community Homeownership Commitment to offer affordable mortgages, industry leading grants and educational opportunities to help 60,000 individuals and families purchase affordable homes by 2025,” the bank wrote.
The National Association of Realtors states that there is almost a 30-percentage-point gap in homeownership between White and Black Americans. The gap is nearly 20 percent when it comes to Hispanic buyers, making it significantly difficult for people of colour to purchase homes.
“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. “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.”
